Home Offices

Some of the most costly equipment commonly purchased for home offices includes computers, printers, and other technological devices. According to Mike Brennan in an article for the Detroit Free Press, the first step in buying computer equipment for a home office is to evaluate what tasks it will need to accomplish. For example, a business that depends upon professional presentations may require a computer system capable of handling complex desktop publishing programs. The next step is to decide whether to buy the best computer model available to meet these needs, or to spend less money for an older, yet serviceable model. In general, experts recommend that entrepreneurs buy the best computer that they can afford. Renting or leasing computer equipment may be an attractive option for small business owners who anticipate that they will not be able to afford top-of-the-line equipment, or who want to keep up with the rapid changes in technology prevalent in today's market.

In addition to the computer itself, home office workers today usually need to invest in a computer equipped with a network interface card (NIC) necessary for most high-speed connections to the Internet. This is essential in order to communicate with customers and to facilitate e-mail and fax capabilities. The majority of home offices also purchase one or more peripheral devices—such as a printer, scanner, copier, or fax machine—depending on their needs. Brennan noted that a multiple function machine encompassing several of these peripherals may be a good way for home offices to save space, although such machines generally entail a tradeoff in the quality of any one function. Finally, a home office must also invest in software to perform work on the computer. Many new computers come with a variety of useful software already installed. One good general option for small businesses is Microsoft Office, which includes word processing, spreadsheet, and database programs, as well as a variety of other business applications.

When establishing the physical layout of the home office space, it is also important to provide for storage of office supplies and business records. Most home-based businesses require at least one filing cabinet, shelves for books or manuals, and space to store paper and other office supplies. Office superstores, mail-order office supply companies, and computer shopping are all convenient options for home business owners in restocking their office supplies. Home-based businesses also need to provide the means for customer contact. Experts recommend establishing a separate phone line for business contacts, and equipping it with a reliable answering machine or voice mail system to handle calls during non-business hours. A separate phone line, which can be answered in a professional manner, gives more credibility and control to the small business owner, and also acts to solidify boundaries between an individual's business and personal life. Some entrepreneurs choose not to use their home address in business dealings, either because of the image it projects or to protect their privacy and security. Home-based business owners may want to consider obtaining a post office box, renting an address from an office suite service, or using a mail receiving service as alternatives to using a home address for business correspondence.

Finally, individuals investing in a home office often need to make significant changes in their insurance coverage to ensure that their business is protected. For example, fire and theft coverage must be expanded to include business equipment, and liability coverage needs to include customers, vendors, and delivery persons visiting the premises. Depending on the type of home-based business, additional coverage may be needed to protect against business interruption, product or workmanship liability, and business use of a vehicle.