“If today were the last day of my life would I want to do what I am about to do?
If the answer has been No, too many days in a row, it is time for a change.”
Setting up Your Home for Work and Relaxation
The first item in this section is the physicality of your office, making it work for and with you rather than work against you. The basis for this starting point is simple, the more organized your office the more work you get done in a shorter time. This allows more "freedom" time. Hours that you could spend volunteering, with your children, in a warm soaking bath or catching up on some much needed sleep.
According to NBC, nearly 38 million households in the United States have a home office. Unfortunately, there's a little more to it than plugging in the laptop and taping a professional-sounding message for the answering machine. To work effectively from your home, you need to put some planning and preperation into how to set up your home office. A home business is a tax advantage when set up properly. If you are planning to be able to write off your home office on April 15th, there are a few other things to consider. Always start by consulting a good tax professional that is well versed in "home based business."
Keeping Good Records is a MUST
If your home office qualifies for a deduction, you can also deduct expenses directly related to your business. They can include the business phone line and Internet connection. For costs that are indirectly related, like utilities, the deductions are based on a percentage of the room's measurements to the size of the entire house. The resulting percentage - is the portion of your home's expenses, such as mortgage or rent, electric, insurance and the security system, that can be deducted.
Use the internet to compare purchase prices for supplies and business consumables used in your business. In this day and age, "letting your fingers and eyes do the shopping" is and must. Try to exclusively use a single account (credit card) for all of your business purchases.
It works best to set up your business (home office) in a spare room. This area must be discussed and understood by your tax professional in order to comply with current IRS regulations! This is your best alternative from both a productivity and tax perspective. A finished basement works great; a bedroom, which often has a closet that can be used to store supplies, may be even better.
Having said that, don't let a space requirement stop you from starting. You can start with a corner of a table or a TV tray if you have to. The key is to get started. Some folks spend months getting ready and never getting around to "actually doing" their business.
There are zoning restrictions to consider and permits to purchase, but regulations vary widely by location. Check with the various municipalities that may have jurisdiction over your property. You always need to check zoning when you're setting up a home office. Call your county and city planning departments to find out what regulations are in place for your area. If you are in a planned community, apartment or co-op check with your homeowners association. But it's not all grunt work -- if you follow the rules set forth by the IRS, you can claim a deduction on your taxes and get some of that hard-earned money back.
The Set Up
Look at our Relaxation link for the basics. Keep in mind that good lighting, grounded power outlets, the capability to be wired with phone lines, Internet connection(s) and a door, (especially if you have small mobile distractions.) If you plan on having clients stop by, what is access to your work area like. Try to position your work area as close to the front door, or the door where they'll be coming in, as possible. Avoid dragging them through the family room, kitchen, other bedrooms or by a playroom. You want to have them walk in and, ideally, your "home office" is right there.
It's also important to be comfortable, so if you can't work when you're hot choose a location that will be well ventilated with air conditioning for the summer months. Measure the space while it's empty. This information will help when you're purchasing equipment, and it's required for tax purposes.
Keep Relaxation in Mind
Can you watch the television for news or a few minutes of that favorite program? Do you have a CD player (seperate from the computer is best) for background music? Is there an outside view to be aware of nature and natural sunlight? Is there room under the desk for your dog or an empty shelf for the cat? Do you have a clock visible to remind you when to stretch, exercise or kid time?
Leave the office for your lunch (go out for lunch when possible) and let voice mail handle the calls. Use a few minutes before or during luch to network and promote your business. Make a bank or supply run part of your lunch outting. Consider an "eating meditation" for your lunch meal.
Living Neat
Neatness counts! The more organized your office the more time you will have for those "other things" the "fun side" of being your own boss. I don't care what resource you use, but GET Organized! It is the single biggest time saver there is. The big buzz word is Feng shui, sort of organization on steroids. A great resource for the organization is found at My Organized Life. Please take a moment and visit.
