Home Business Set-Up

Make Your Home Office a Distinct and Separate Area

Review what sort of work and meetings will be undertaken in your home because this will determine the most appropriate office/work set-up.

How much work is actually carried out in the home?
Will you be doing all of your work or only the administration tasks in your office?
Will you require separate areas for varied tasks, eg administrative versus technical or equipment-specific tasks?
Who will use the space? Will it just be you or will your colleagues work in it as well?
Will clients or customers visit you at your home office?
If so, what sort of image do you want to portray to those who visit your office?
Do you need a separate place for clients to wait?
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Make Your Home Office a Distinct and Separate Area

Try and set up a separate space for work, quite distinct from the rest of the home. This will assist you in two ways - it will make it easier to focus on work during working hours and easier to relax and switch off from work during your own personal time. There are also associated tax implications in creating a distinct "work" environment to the rest of the home.

In some cases, creating a distinct space may not be entirely possible, but still try and delineate a work area in some way. For example, in a shared space perhaps you could pull a standing screen around an office corner to signify "close of business".

Consider converting a backyard shed, garage or granny flat to use as your home office. This would not only make it easier to calculate business cost deductions for tax purposes, but may also prevent visiting clients from having to walk through your whole house.

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Consider Your Comfort

Your home office, particularly if you will be spending a lot of time there, should be a place that you are comfortable in. You should have adequate, uncluttered space for your activities and maintain neat filing systems. Consider how setting it up and even refurbishing or decorating it will suit you.

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Convey a Professional Image

Remember that your home office, if it is to be visited by clients or customers, should project the fact that you are professional, competent and reliable in the services and products you provide.

It may appear to be a fairly trivial topic, but how you answer the phone can make a very big difference to the first and on-going impression callers have of your business.

After 2 rings, callers are wondering what’s going on. Your phone should be answered in person by the second ring or by your voice-mail system by the 4th ring.
Just saying “Hello” or even worse your surname is considered too abrupt in Australia. A wordy “Good afternoon, This is (your full name) of XYX company. How can I help you?” has your caller wondering whether they’ll ever get to say a word. It also means you have to check your clock to see if it’s morning or afternoon, or even worse, to apologise if you got it wrong.
Never put a caller on-hold without asking for their permission, and then waiting for their response. Putting customers on hold without their consent is a sure-fire formula to lose customers.
Studies show that after only 17 seconds, callers on hold become annoyed. The exception is when the greeter explains why the caller is being asked to hold and provides the estimated time required.
It’s none of the caller’s business why John can’t come to the phone so don’t tell them. Don’t ask them if they want you to take a message because it sounds as if it is an effort for you. Telling the caller to call back later gives the impression that you’re too lazy or disorganized to take a message. This gives a potential customer a terrific excuse to call your competitor.
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What Can You Truly Afford?

Examine your budget and consider what is absolutely vital to your business for enhanced productivity and success. In most cases, this would probably include appropriate technology or specialist equipment. A good, ergonomically correct chair is also important, particularly if you are to spend a lot of time at a desk.

Keep in mind that initial outlays on expensive furniture and finishes etc may be risky, particularly if funds are tight and/or your business model hasn't been properly tested yet.

Furniture

If you're going to be spending most of your time at your desk or on your computer, the right desk and chair are vital for comfort and to prevent Repetitive Strain Injuries (RSI).

A decent cabinet or shelving system for effective filing is also a valid consideration.

Do you need furniture for home office meetings?

If clients and customers will visit your home regularly, consider whether it is worth investing in quality furnishings and/or decoration to project professionalism.

If you will be meeting clients or holding meetings at your home, you may need to set up a meeting table, or you could just rely on your own living or dining rooms (but be ready for impromptu meetings!) Another alternative is to use a sofa and coffee table instead of a meeting table for more relaxed type meetings.

Remember, hiring a meeting room or conducting meetings/business at cafes or restaurants is also an option!

Lighting

Examine your lighting. Ideally, you would have adjustable task lighting that shines on your work, eliminating shadows. Ambient lighting illuminates the room and should be positioned so it does not create glare on the computer screen. If the screen faces a window, the light will create glare that tires the eyes for all your equipment. Consider getting surge protectors as well.

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Office Equipment

Telecommunications

All businesses need a phone. If possible, use two separate phone lines - one for business calls and the other for general home use. Most domestic phone cables have a capacity to accommodate two lines. For the home only, cordless phones can be very useful. If you run a highly mobile business, a mobile phone is a must. If your business involves spending a lot of time on the phone, a "call waiting" facility and voicemail, or reception facilities are also advisable.

Sharing a phone between private and business usage is dangerous for business, especially if there are others in the home. It also makes it difficult to separate your business call costs from your other call costs. One number for your fax and phone can also cause unwanted delays for clients or customers trying to call or fax you. You can, however, share one line between dial-up Internet and fax.

Most telecommunication providers offer a similar suite of services which include message bank, call forwarding, a single line (but separate numbers) for fax and phone, a remote access, dial up and broadband Internet connections. Shop around to find the most reasonable deal that meets your specific business requirements.

Telecommunications used to be very simple. You had a phone. You dialled the number you wanted and you received calls. End of story. But hasn’t life changed? You have a choice of telephone service providers for some features. You have a vast array of features to choose from in numerous combinations. But as with anything, first work out what you really need, then possibly what would be nice, then go to the different providers to find out whether they offer what you need and at what price.

To find out what you need, it’s easier to know what is available. The internet gives you all the information you could possibly want, and more. However, if you answer the following questions, you’ll be well on your way to deciding what you need. Prepare yourself a matrix of questions and the answers from the different service providers. This gives you an easy comparison tool.

First decide the features you need

How many phone lines?
How many fax lines?
How many phone numbers?
How many mobile phones?
Will you need a phone network, e.g. PABX?
Will you need to connect to the Internet via the phone?
Will you want to leave a message on your phone for when you’re not able to answer it?
Will you want your callers to be able to leave a message if they can’t get through?
Will you want to be able to retrieve messages from wherever you are?
Will you want to be able to forward your calls to another number?

Then compare different services

Try and maintain your initial phone number so that you can avoid the hassle of notifying your customers of a change and having to reprint your stationery etc.

Office equipment

In general, a fax machine, printer and copier are standard items for the office (and computer - see next section). If your computer has fax capabilities, you may not need a separate fax. In addition, if you want a paperless office or run an online business, you may use email only.

If you print a lot of documents, a laser printer is generally more cost effective than an inkjet in the long run.

Multifunctional devices where the printer, copier, scanner and fax are all combined are well suited to the home office. They can reduce the cost of setting up an office, save desk space and limit the amount and type of consumable (ink/toner cartridges and paper) you need. On the downside, they can be notorious for doing one or two tasks really well and others poorly.

Consider both the cost of consumables and the quality of the output, as these affect the long-term value of the device.

The additional equipment you require will depend on your specific business needs. Scanners are mandatory for companies that carry out desktop publishing and those which copy a lot of documents. Digital cameras can also be useful.

Computers

There are plenty of reasons to run your business from a computer and lots of bargains available if you are looking to buy. You could also rent or lease a computer at a cost per week. You must first decide exactly what you will need a computer for and what software you will require. The old issue of Mac versus PC is no longer relevant as most software packages are available for both platforms.

Most PCs come pre-loaded with operating system software that runs all operations on the PC. If you're a MAC user, there is only one operating system choice, although you do need to select an appropriate version.

If you need to buy a computer for the first time or are looking to upgrade here is a checklist to make the process easier and less risky:

Buy as powerful a computer as you can afford to protect your investment.
There are lots of reasons to network two computers. You can share an internet connection, files and folders, and a printer.
A recordable CD drive is very useful for backup data, storing information, giving someone like your accountant you electronic financial books for the year.
Get the latest operating system because it is more stable and will last longer.
LCD screens are much more pleasant and safe to work with than the old style monitors (much lower radiation).
The Mac/PC debate just won’t die. Except for more business software on PCs, it’s personal choice.
If you don’t have next-day repair, you may be without your computer for weeks. Can you afford to be?
Buy a laptop if you are on the move a lot.
DVD is not essential – yet, but the way computers go, they’ll make it essential pretty quickly.
Zip drive is almost old technology now.
Same as floppy disk drives. Some new machines don’t even have them. As most people are connected via the Internet these days, transferring small files has become very easy, and you’ve got the recordable CD drive for larger files.

Desktop or notebook?

Desktops generally are cheaper and more reliable, have a better upgrade path and offer more connectivity options. However, notebooks provide greater mobility. Business operators with simple requirements and the need for mobility could consider a handheld PC.

Networking PCs

Businesses with two or more PCs should consider networking them, which lets you share important resources such as printers, scanners and Internet access, as well as stored data.

Home-based businesses tend to be smaller in scale so there may not be the need for a dedicated server. Any existing PC can be used as a server, provided it can handle the workload. However, a dedicated server would be better able to cope with expansion if your business grows.

For the home-based office, wireless networking may also be a good option. Wireless networks are valuable if you are moving around a lot in your work or give presentations to customers regularly.

Better Business Tip
Whilst cost is a definite consideration, don't become completely fixated on the lowest possible price when purchasing technology. It pays to take time to analyse your present and future requirements and to find out about all the options on the market. Factor in future growth of your business - if that's on your agenda - and buy with the future needs in mind.

Software

Software is a very individual thing, and what you need depends on your field of business. Most businesses require a general purpose package for tasks like word processing, spreadsheets, presentations, database and communications management, and a basic accountancy package for business accounts and GST management. There are also other software packages on the market that may suit you better than the generic software offerings.

Consult IT professionals about your general systems needs and security considerations.

Better Business Tip
Maintain your equipment! Often, once in operation, time and finances are not directed to maintaining the investment in equipment. Plan ahead in your business plan for replacements and upgrades, etc.

Choosing an Internet Service Provider

There are even more Internet service providers (ISPs) than there are telephone service providers. Luckily there aren’t quite as many features to compare between.

If you need an email address, any ISP will be able to provide you with one.
The most immediate questions when choosing an ISP are whether you need to use the Internet frequently and download a lot of data, or use it seldom and for short periods of time. Your costs can skyrocket if you change from short sharp encounters to deep and meaningfuls without rejigging your Internet access plan.
If you intend to change ISPs frequently, taking advantage of low prices or reliable connections, you would be advised to have your own domain name. Then your customers and suppliers don’t even have to know that you have a new ISP.
Whether you need a Web site or not is a question to be answered in your marketing plan. But if you do need one, check out what the ISPs offer for Web services.
Once you’ve used a high speed connection, it is very hard to revert to the standard dial-up connection. It costs more, but if you’re on the Internet a lot, it may be worth it. Generally the easier it is to get in and move around the Internet, the more you are likely to use the service. That could be a good thing.
If you travel, you’ll need an ISP that can travel with you without your having to make long distance calls. Also, if you have a broadband connection at home, you’ll need to have a dial-up as well when you travel.

Ask yourself the following questions:

Do you need an email address?
Do you need to send or receive a large amount of data regularly?
How many hours will you spend on the Internet a month?
Do you need your own domain name?
Do you need your own website?
What high-speed connections are available in your area?
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Filing Systems

Even the smallest, part-time operations require some sort of records system. Filing systems allow you to keep track of documents and information etc. Efficient systems also reduce stress and make it easier for you to plan and to teach your staff or colleagues the ropes.

Try to keep any file you create relevant and full of the most up to date information possible. To help you retrieve this information on demand, label files correctly, group related files together and place them in alphabetical order. Also, try colour coding.

Don't just document your official business papers etc. Consider documenting your HR policies and how you deal with client inquiries, and filing these as well. It can reduce the uncertainty of how you want things done in your business, particularly for your staff.

Files need to be stored somewhere. It may be adequate to allot part of a shelf in a bookcase for your files. For larger businesses it may be necessary to buy a cupboard or filing cabinet. Utilise your space.

Legal Files

It’s amazing how easily very important papers can get lost if they are not organised in a cohesive manner. Also, if you want to sell your business, the first thing most solicitors will ask you for is the documents that define the business. Huh?! So any papers you have about trademarks and copyright, and any procedures you have written to define how your business is to run suddenly become valuable documents. When you want to renew a contract, be it for a lease or an employee, it’s very annoying not to be able to find it.

To develop an appropriate legal file:

Decide which legal documents you should have (speak to your solicitor if you are unsure).
Make up a folder purely for those files with an index for easy retrieval.
Keep some extra sections for legal documents you expect you will need in the future.
Keep the file in a safe area (in a fire-proof safe if you have one).
Update the file as required.

Electronic Filing Systems

Maintaining logical and up-to-date electronic files these days tends to be as important as maintaining hard copy files. File manager software assists you in sorting your folders of files easily. If you use email, you also have the option of setting up email folders to sort your messages. Databases can be used to keep track of your clients and to build your customer base online.

If you have more than one computer, installing a local area network will ensure joint access to files.

Make your electronic filing system compatible with your hard copy systems.

CD-ROM is a highly effective way to store data. It's cheap, quick and easy, and CD-ROMs are durable, with data typically remaining intact for at least 100 years. This makes them particularly valuable for storing photos.

Always remember to back up your files and keep the back-ups offsite in case of fire or burglary. You should also keep virus protection software up to date.

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Operations Checklist

What do you require for your home business set-up from the following list?

Furniture

Adjustable, ergonomically correct chair
Desk - make sure it is at a comfortable working level for you
Bookshelves
Product/services display board
Notice/reminder board
Waste bin
Visitor's chair
Meeting table

Additional Options

Decorative plant
Desk lamp - not essential, but can reduce eyestrain
Special lighting