Washington State Department of Services for the Blind

Quick Statistics*

6.1 million U.S. households (about 6% of all U.S. households) have home-based businesses.

One out of five small business enterprises are operated out of the owner’s home.

27% of all Americans who work from home are self-employed.

The projected growth rate for home-based businesses is 11%.

*Provided by U.S. Small Business Administration, TELEWORK AMERICA (TWA) 2000, and National Association for the Self-Employed (NASE).

Oftentimes, a particular small business may be suited for the home environment. Web publishers, dressmakers, and some consultants, as examples, are able to provide their products or services directly from their homes. Others, such as plumbers and musicians, use their homes merely as a base of operation.

The option to work from home is appealing for a variety of reasons:

Increased flexibility and greater freedom to run the business and create own working schedule

Cheaper alternative to commercial office space lease

Time, money, and energy saved by reducing travel to and from work

Increased comfort while working due to familiar surroundings, ability to wear casual clothes, etc.

Opportunity to meet and solve both business-related and home/family-related issues as they arise

Feeling of security and of being immediately available to family and children (especially appealing during crisis or emergency)

Peace and quiet of working in residential setting

Home-based businesses present a fair share of challenges, as well, such as:

Feeling of isolation

Increased difficulty in separating professional life from personal life

Tendency to work much longer hours

Interruptions in the work schedule by friends and family members

Feeling of boredom, restlessness, or confinement from being in the same working environment all day

Greater distractions that may impede work productivity

Since working from the home impacts so heavily upon both their personal and professional lives, new business owners should consider the relevant implications and ramifications when deciding if the home is the appropriate setting for their small business. The following list of questions may provide insight into this decision-making process.

Is my business of the kind that typically thrives in a home-setting?

Will my potential customers and suppliers be receptive to doing business with me from my home?

Will my family, friends, and neighbors be supportive of the idea?

Will my family, friends, and neighbors be respectful of the personal-professional boundaries that must accompany any successful home-based business venture?

Can I look and act professional while working from home?

Can I remain productive faced with the additional solitude, boredom, and distraction that a home-setting poses?

Will I be able to separate my personal responsibilities from my professional ones?

Once it has been determined that a home-based business is appropriate and preferred, there are still more concerns to be addressed, such as:

Where in my home will I set up my office or workstation? Will this area allow me to perform all of the necessary duties of my business without unduly disrupting the functioning of the rest of the household? Will it encourage productivity and project a professional appearance to my customers and business visitors?

How can I ensure the safety of the work area? How will I prevent my customers and business visitors from entering into personal areas of the home?

What safeguards will I implement to prevent unnecessary interruptions or visitations (from family, friends, etc.) while I am working?

How will I deter distractions and feelings of boredom and isolation while I am working?

What legal restrictions (e.g. federal laws and local zoning laws) must I consider and follow when establishing my business at home? For instance, am I prohibited from posting signs, flyers, or other advertisements in the neighborhood? Are there any residential parking restrictions or other traffic codes that will affect how I run my business? What home-occupation permits or business licenses, if any, will I need to obtain before I can legally start running a business from home?

How will I know when my business has become ill fitted for my home? What will indicate to me that the business has outgrown my home or is incompatible with my idea of a desirable home environment, and thus should either be restructured or relocated?