Running a Company From Home

A bonus: The value of the space in your home designated for business use is an income tax deduction. But be reasonable when declaring it; you can't write off three-fourths of your square footage if you're only using one bedroom for your business. In addition, you can claim portions of your utilities like phone, Internet, heat and electricity, that go toward business use.

Know when to leave the office. It can be tempting for zealous entrepreneurs to do business 24/7. And while it's an advantage to have instant access, it's also a challenge if you have other obligations or responsibilities. You'll always want to stay on top of that next email or return that phone call, but many entrepreneurs I know have had to establish boundaries for themselves.

For example, when I interviewed Julie Clark, who founded Baby Einstein before selling it to Disney, she told me she simply had to turn off the computer at 3 p.m. when the kids came home from school, and return to it, if necessary, after they went to sleep for the night. Otherwise she felt the constant pull of checking and replying to emails and voice mails.

Keep one calendar. Part of the beauty of running your own business is the flexibility to dash off to your kids' afternoon recitals without asking the boss, or take a last-minute afternoon for golf on that first perfect spring day. But keeping track and balancing all your many "to-dos" can be daunting unless you merge your business and personal life.

When I first started my business, I kept separate calendars: one for personal family events and appointments, and one for business obligations. I soon realized that this wouldn't work. My business and home life were completely intertwined, and I was double booking important events. Keeping one calendar for everything was the solution.

Make a move when you need to. As your business grows and thrives, you'll inevitably need more space for inventory and employees. That's the time to lease or buy some office space to save your own sanity and keep things professional. Of course you can still use the home office for late-night business access or work-from-home days. That's the beauty of being your own boss -- you call the shots, no matter where you're working.

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