A trend that has steadily increased over the past 15 years

Most small businesses in Canada start from a home office. It’s a trend that has steadily increased over the past 15 years, as more entrepreneurs decide to embrace the freedom and affordability working from home offers.

Until the 1990s, anyone working from home wasn’t taken as seriously as an entrepreneur with an outside office. A home-based business was perceived by big business to be a ‘hobby’ venture, and not a real company. Now, entrepreneurs often close their expensive leased office premises to enjoy working from home. Proving size and location no longer matters, many businesses operating from a spare bedroom, basement or garage generate millions in annual sales.

However, there are some issues to consider when setting up your home office. Elizabeth Verwey owns Small Office Mentors, a company that helps people to set-up and improve their domestic operations.

Elizabeth recommends home-bound entrepreneurs start by creating a dedicated workspace. "It’s important to physically separate work from home so you can focus on business," she says. Clear a nook somewhere, move into a spare room or even just hang a curtain to distinguish your office and living space.

Forget the idea of a ‘paperless’ office, Elizabeth recommends. In reality, small business owners do generate mounds of the stuff. "Create a workstation for the computer but add bookshelves and small filing cabinets," she suggests. "Otherwise, you’ll have files and invoices lying around on your kitchen table or sofa."

Set some ground rules and office hours for your home operation. If you want to work from 9 to 5, make it your policy and stick to it. "It’s so easy to start a load of laundry or turn on the TV," suggests Elizabeth.

Friends and family can also distract the home entrepreneur, because they think it is okay to drop by for a visit anytime. "People close to you must understand you’re running a business, and that you’re trying to separate personal time from work time," she says.

In some municipalities, there are legal considerations to operating a home enterprise. Given the proliferation of home-based businesses, some municipal governments have passed bylaws restricting the type of business you can operate. Concerns can include attracting commercial traffic to residential neighbourhoods, manufacturing a product or posting external signage. Check with City Hall to investigate any such bylaws or required permits.

Working from home can offer the best of both worlds

Be sure to avoid stagnation by escaping your home office. It’s important to take a break at least a few times a day, for either a refreshing walk or a cup of coffee. Hook up with a networking organization or join a business group to attend out-of-office events.

Worried about where you’ll meet clients? It’s been said that Starbucks has grown so rapidly in part because of home-based business owners who use their coffee shops as a virtual office. It’s okay to arrange a meeting at your neighbourhood café, restaurant or library. Alternatively, many cities now offer tele-commuting centres equipped with receptionists, meeting rooms and temporary offices for home-based entrepreneurs. Ask your local Chamber of Commerce or Enterprise Centre about such services.

Working from home can offer the best of both worlds. You’ll save on business clothes, rent, meals out and parking. You can work whenever the mood strikes. Leasing or buying office space instantly increases your business overhead costs and your risks. While you may end up in a glossy office tower, start by working at home to give your business a better chance at success.

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Written by Roger Pierce.
(Entrepreneurship expert Roger Pierce is a partner in Biz Launch, a company that trains new entrepreneurs in its Up & Running Biz Launch Program. He may be reached at 1-866-302-0996 or roger@bizlaunch.ca.)

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