Home Improvement: savvy strategies for building your homebased business - includes related articles - Cover Story

Entrepreneur, Sept, 1996 by Cynthia E. Griffin, Heather Page

HOMEBASED BUSINESS WAS ONCE the Rodney Dangerfield of entrepreneurship: It couldn't get no respect. When we first started writing about the concept years ago, many considered homebased entrepreneurs something less than real businesspeople--a cottage industry of part-timers and wanna-bes:

But that was then; this is now. And now, when you tell a cocktail-party companion you work from home, you won't get a condescending smile--you'll hear sighs of envy as a crowd gathers to hear how you did it

Technology that makes "virtual offices" feasible has helped create an industry of about 31 million entrepreneurs, according to Link Resources' estimates. The shrinking of corporate America is spurring still more growth as downsized employees turn to homebased business ownership. And more and more techsavvy twentysomethings, reluctant to ride the corporate treadmill, are choosing to work from home instead.

That's good news and bad news for homebased entrepreneurs. The good news: It's easier than ever to run a professional, efficient homebased business. The bad news: You've got more competition. So how do you stay abreast of these challenges? Read on . . .

Elbow Room

Making the most of your small office

A funny thing happened to IceBreaker Enterprises during a salesperson's visit.

"A salesperson came to us to pitch a package display," recalls Scott Walker, head of the Atlanta family-owned firm, which manufactures the novelty party game Walla Balla. "She came into the house and down the dark stairs to our dimly lit basement office. Throughout the entire meeting, I could tell she was uncomfortable about her surroundings, and that's when it hit me. I said to myself, 'This is not a business-friendly environment.'"

Paul Limburg's revelation was not quite so dramatic. Ten years ago, he started a computer programming and mail order software sales company, Limburg Engineering Associates, from his Torrance, California, home.

"When we first moved into our house, I started out on a desk that was a door propped up on two short filing cabinets. When I went full time, I got more formal about it," says Limburg about his 10-foot-by-10-foot office, which is now home to a desk, three computers, fax and copy machines, and at least 10 printers.

The key to successfully navigating space constraint hurdles such as Walker's and Limburg's is to look at your home from a fresh perspective. You can either tackle this task yourself or hire a professional.

"An interior designer is specifically trained in interior work and space planning," explains Alexandria Lanuk, owner of ATL Interiors/Corporate Environments in Stamford, Connecticut. Examine your current space with an eye to planning for future needs, she adds. Will you be adding an employee, increasing your product line or buying more equipment?

Before you decide you need a major expansion, look at other areas of your home you could use, such as a basement, a porch or part of a living or dining room. Hidden spaces to consider include attics or hallway closets big enough to be converted, says Lanuk.

Moving outside the home wasn't an option for Limburg--he loves the flexibility of being able to take his 5-year-old son swimming every afternoon. But what were his options? Kick his 8-year-old daughter out of her bedroom? And, since the family had only recently lived through an extensive remodeling project, his wife put her foot down when he proposed knocking down a wall.

For now, Limburg's solution is to maximize space by installing shelving. "One key strategy is to go vertical," says Limburg. That includes using the space above and under your desk.

Walker and his siblings made their basement office more professional by clearing away old family paraphernalia, adding more lighting, and stocking a small refrigerator with refreshments for visiting clients.

There's a variety of affordable, space-conscious office equipment on the market to help you make the best use of your space. These include desktop copiers, laptop computers and fax-copy machine combinations.

Whether you hire a designer or do it yourself, keep these points in mind: Plan for the future, be flexible and understand what you can afford. --C.E.G.

All Systems Go

Does your equipment meet your needs?

So you were able to equip your homebased office for a few thousand dollars. But now that your company's growing, is your inexpensive--dare we say cheap?--equipment still meeting your needs?

If not, your business's image and productivity are probably suffering, says Steve Tucker, chairman and CEO of Home Business Services Inc., a Littleton, Colorado, company that provides education, products and services to homebased businesses. Which new equipment should top your to-buy list? Start with a high-speed 28.8 bps modem, cable modem or ISDN line to effectively access the information superhighway for networking, marketing and information purposes. "Getting on the Internet is becoming much more important for homebased businesses," says Tucker.

Of course, you should also make sure your computer is up to speed. Tucker recommends purchasing a machine with a Pentium chip or at least a 486 microprocessor. Also consider expanding your hard-drive capacity to make room for memory-hungry office productivity suites, which combine word processing, spreadsheet, e-mail and personal organizer programs in one useful package.