NFIB

Running a Business From Home: Part I
04/ 01/ 2002


Many couples these days run not one but two separate businesses from the home. My wife and I have done it for years, she as an artist, I as a freelance writer. Today's Workshop discusses invaluable tips that will keep both workplaces functioning smoothly.

When each person runs his or her own business from the home, there are certain aspects of the operation that need to be kept separate, and certain aspects that can be shared. Things to be kept separate include:

1. Bank accounts. Never intermingle checking accounts. Each business should have its own business account. Always deposit incoming checks and pay expenses from the proper accounts. This will simplify financial records for tax time, because you'll need to prepare a separate Schedule C for each business. For the purchase of everyday household items, you can maintain a shared household account if you like.

2. Offices in the home. Unless your businesses are extremely compatible, you'll each need your own office environment. Certain office equipment can be shared, such as copier and filing cabinets (as long as you have separate drawers), but sharing the same desk and/or immediate working environment can cause severe distractions, especially when one person is working under a deadline.

3. Phone lines and answering machines. If both people use the phone as a primary business tool, separate phone lines are a must. Only when business usage is minimal can a single business phone line be shared. When sharing a business answering machine, be sure to use the names of both people on the outgoing message. (For instance, "You have reached the home offices of Robert Johnson and Jane Johnson.") Having three lines in the house is by far to be preferred: one general household line and one line for each business.

4. Internet accounts. If Internet usage is minimal, one account can be shared-- but it's more professional to have separate E-mail addresses so that customers feel they're contacting a stand-alone business, not a joint business/home account. Most Internet Service Providers today offer at least 2-3 E-mail addresses per account, so separate E-mail accounts won't cost more. Better yet, both people could get an E-mail address from Yahoo, Hotmail, Lycos or any of the other free web-based E-mail address providers. This will serve to separate the two businesses, while allowing easy access to E-mail while traveling.

5. Separate Web sites are also preferable, unless the two businesses are extremely complementary.

Part 2 of this Workshop focuses on more personal tips to keep the workplace running smoothly.

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