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Setting up a home office

Recent events have caused more people to stark working from home than ever before, and it may have changed the way we work for the foreseeable future.

Whether you are setting up a space for those hours away from your regular office or are planning to start working remotely on a permanent basis, there are many factors to consider. If the immediate growth of your business or quality of your work will not be hampered by the space available in or the surroundings of your home office, this option could result in a big financial saving.

Many working parents also prefer the flexibility that a home office affords them. Commuting to and from work every day can in many cases mean hours spent sitting in slow-moving traffic. Working from home, that time can be used far more productively.

Whether you use a section of a room, an entire room in your home, or a separate space such as a basement, loft or additional building on your premises, you need to find a space appropriate to your business needs. This will depend on the equipment you use, the amount of storage space required, and whether you need to conduct meetings with clients.

Experts suggest using a space separate from the day-to-day commotion of your personal life to both maintain professionalism during working hours and to distance yourself from a working frame of mind after hours. The layout of office furniture, temporary room dividers or drywalling can also be used for this purpose.

Essential requirements for effectively working from home include a reliable internet connection, adequate lighting, sufficient heating and cooling, a sturdy desk, a comfortable chair, a reliable printer and/or scanner and a detailed message on your answering machine, stating your working hours. It is also especially important that you are prompt in following up with your clients, as they might not keep the same hours as you. A website can be a great asset in establishing a virtual presence for your business.

With regards to choosing which type of internet connectivity is best suited to your specific needs, Electronic Communications Network (ECN), provides the following helpful information:

Digital Subscriber Line (DSL)

As with the traditional dial-up connection, the DSL operates over telephone cables and generally operates between 5 and 25 Mbps (megabits per second).

There are two types of DSL, these are:

  • Asymmetric DSL (ADSL): has faster download than upload speeds and is the more cost-effective option.
  • Symmetric DSL (SDSL): has equally fast upload and download speeds.

Pros of DSL are:

  • Several providers available
  • Cost-effective internet connection
  • Consistent speeds

Cons of DSL are:

  • The further from the provider you are, the slower and less reliable the internet connection.
  • A relatively slow internet connection overall.

Cable broadband

Using coaxial cable television wires, this internet connection is similar to DSL but offers faster speeds.

Pros of cable are:

  • Unlike with DSL, the connection remains reliable and the speed is not affected by the distance from the provider.
  • A relatively fast internet connection.
  • Several providers are available.

Cons of cable are:

  • Not a dedicated line so internet connection is slower when there are more users.

Satellite connection

The internet is supplied via satellite dishes to any location.

Pros of satellite:

  • Covers all areas, even those inaccessible by other internet types.

Cons of satellite:

  • Slower than most internet options
  • More expensive than most internet options

Fibre optic

This is currently being rolled out across the country and transmits data via fibre optic cables.

Pros of fibre optic:

  • Incredibly high speeds – it is the fastest connection available
  • Reliable internet connection not affected by weather

Cons of fibre optic:

  • It is not available everywhere
  • Not as many providers yet

ECN explains that the best internet connection depends on your needs, location and budget. A reputable internet service provider will be able to assess your requirements and work out a suitable connection.

Important aspects to consider when choosing a connection type are:

  • Speed and reliability.
  • Data caps: how much data you can download.
  • Bundling: better rates if you are already using the company for another service.
  • Start-up deals: any specials for starting with the ISP.
  • Additional costs: related to renting modems or installation.
  • Customer service: you might have to do a bit of research to find out about the service offered.

Other expenses to bear in mind when setting up a home office include maintenance, backup during load shedding, and insurance. Bear in mind that home insurance does not usually cover assets used for business in that home. A commercial policy will bridge the gap to include these items. Specialist risk finance company, Business Partners, urges small business owners to insure all their employees against accidental injury at work, death or disability. Furthermore, they advise business owners to call in the help of an insurance adviser to ensure that their businesses are comprehensively covered against unforeseen circumstances. Policies should also include professional indemnity cover.

Insurance, along with expenses such as rent on the premises, interest on the mortgage bond, rates and taxes, repairs, and costs related to the premises, such as electricity, water, security and cleaning, could also qualify as tax deductions. Home office expenses are tax-deductible when a room (or a portion of a room) within a home is dedicated solely to the purposes of a business, equipped with the necessary items specific to its trade, and is frequently and exclusively used for the intended purpose.

Working from home is associated with certain disadvantages. According to a study done by the American business website Business News Daily, working from a home office could negatively affect communication, decision-making and conflict resolution with colleagues, as it is more difficult to establish trust. But those in the know believe that, with enough self-discipline, the rewards far outweigh the disadvantages.

The information contained in this article is of a general nature and intended for information purposes only.