Authors: Kathleen Parrott, Extension Specialist, Housing, Virginia Tech; Annette L. Bach, Professor Emeritus, North Dakota State University and Ann Lastovica, Extension Specialist, Family Management, Virginia State University.
Publication Number 354-306, Posted June 1998
Introduction | You Don't Work Alone |
What's the Law? | Family Space Needs |
Home and Work Conflict | Outside the Office |
It's Your Business | Conclusion |
Analyze Space Needs | Your HBB/Family Action Plan |
This publication will help you consider the issues of living and working in the same space. The experiences of other home-based business (HBB) owners will be shared. Ideas to help you prepare for, and prevent, potential conflicts are included.
Look for the "boxes" that report the experience sof Virginia home-based business owners and conclusions drawn from a study of these businesses. Use this publication and its worksheets to stimulate discussion in your household of how best to meet the needs of your business and your gfamily.
Please "enter" the HBB home for a discussion that will help you and your family develop a successful plan for your business-household merger.
Working at home is not new, but recently more and more people are trying it. The 90's have been called the "Decade of the Entrepreneur," and according to one reference, LINK Resources, the number of entrepreneurs starting home-based businesses (HBBs) has increased from 14.9 million in 1988 to 24 million in 1994. The fastest growing segments of these business owners are women and minorities.
The home is being called "the new American workplace." Home-based businesses have begun to gain in credibility, longevity, stability, and financial success. In addition, people often have personal reasons for choosing to begin a business in their home.
Home-based businesses vary from part-time to full-time employment. For some owners, the business provides the sole household income, while for others, the business provides money for "extras." Some HBBs are operated by an individual, others are a family venture, and some employ people other than family members. The possibilities for a home-based business are as limitless as the owner's creativity. Various types of HBBs include manufacturing, service, consulting, mail order and sales. In this publication, we will focus on the entrepreneur or business owner, although much of what we say applies to the tele-commuter, contract worker or others who work at home.
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Examples of laws or regulations that could limit your HBB include zoning, restrictive covenants in your deed, homeowner's association covenants and local ordinances. In addition, your homeowner's insurance will likely be affected, and you need to consider issues such as liability.
Because laws vary by city or county, knowing what is legal for your locale will help prevent problems, and allow you to adapt your business accordingly. It is important that you contact your local government or zoning office or consult with such persons as lawyers, insurance agents, and accountants who will also be able to advise you.
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Research conducted with HBB owners in Virginia and other states has shown that conflict does occur between family and business needs for space in the home. This conflict threatens the success of the business and family harmony.
The primary cause of the conflict is the lack of a clean division of space for business use. Effective management of the home space is needed to reduce conflict.
Specific examples of conflict include: clutter from the business in family space, lack of adequate space for both business and family activities, need to move business activities to accommodate family activities, increase in household work due to the business, and business clients' lack of respect for the space known as "home".
In a typical situation, beginning a HBB involves bringing a business into what was previously considered family space. By definition, a HBB takes up space in the home: before the business starts, the home is seen as family space.
After the business starts, family space must be given up to the business. The family and the HBB must be integrated into the same structure.
Because of this, a plan for integrating a business into the home space includes an evaluation, by each family member, of when and where it is acceptable for the business to intrude on family space.
There are other issues in changing perceptions of space and access in the home:
The use of a space is changed by the presence of the business. For example, a dining room may double as a space for consulting with a client. Or, the kitchen may now be shared at lunch time. The activities that can take place in a home are altered by the presence of a business. For example, TV watching may be banned during business hours due to noise. Control of space used by a business may eliminate space formerly used by the family; for instance, a guest room may become an office. The question of maintenance arises when areas are used by both the family and the business. For example, who is responsible for the upkeep of common areas such as the entry and stairs?
The perception of the workplace is important. A home is normally a private place, a business is public. Outsiders see the HBB as a business, a public space, whereas the family may still perceive the business as home space, and regard outsiders as showing a lack of respect. How would your family react?
Consider the space in your home for your own HBB. What are the positive aspects of being in business at home? What might be negative aspects or disadvantages? It is important to take a realistic look at both the advantages and disadvantages. List your thoughts below.
Advantages of being in business at home: | Disadvantages of being in business at home: |
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What will your business demand from your home space? (Examples: office space, place to visit with clients, storage, more lighting) | |
What does your family need from space in the home? (Examples: private rooms for sleeping, quiet spaces, storage, safe play area for children) | |
In the following pages, we will help you develop a plan to integrate these two sets of needs.
Why are you in business? | |
What is your goal? (Example A: To design and produce high quality wooden storage accessories for the home. Example B: To help local offices reduce their workload by providing secretarial services). | |
How would you briefly describe your business to a potential customer? Write a "capsule" description that includes the business name and purpose (Example A: "Virginia Woodcraft" specializes in custom shelves and wall cabinets. Example B: "Words Plus" provides word processing, graphic layouts, printing and duplicating for local businesses): | |
What time is devoted to the business?(Examples: half days only, Mondays only, regular office hours weekdays, seasonal) | |
Describe the physical size of the business: | |
number of people (employees including family members - full-time/ part-time, temporary/permanent; clients and so forth) |
Volume of materials, supplies, equipment | |
The type of activities within your business help determine the space needs. What are the primary activities of your business (designing or working with a product; displaying products; consulting with clients by phone, in person, both, .....)? | |
There are major differences in types of businesses. Would you describe your business as a:
Each of these differences affects the need for space and the way the space is used. Different amounts of space may be used by the business. In addition, different business activities may have varied levels of acceptability to family members.
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What will you need to accomplish your goal(s)? Look over the preceding examples, then list key items below that will be needed for your specific business.
Needs | Example A: "Virginia Woodcraft" | Example B: "Words Plus" | Your Business: |
---|---|---|---|
Space | two-stall garage or 20'x 40' room washroom | 8'x 10' office, private space (seat up to three persons) | |
Furnishings | 1 drafting table 1 large workbench 1 computer desk 2 four drawer files | desk, chairs, work table computer desk | |
Office equipment | 1 computer 1 word processor 1 facsimile/phone | 1 computer typewriter 1 answerphone 1 duplicating machine | |
Mechanical needs | 1 table saw 1 sander 1 dust vacuum | desk fan | |
Lighting | minimum 6 tracks 2 task lights | desk lamp floor lamp | |
Ventilation | hooded exhaust fan | ||
Access to other space | kitchen bathroom | bathroom | |
Storage | locking supply closet lumber storage shelving for supplies room for finished cabinets and shelves | coat rack office supply cabinet |
And...? (what else might be needed by your specific business)
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Needs | Present situation accommodates | Changes needed: now | future |
---|---|---|---|
Example: X parking | 1 employee, 1 client | none | add one parking space |
  parking | |||
  easy access | |||
  office hours | |||
  pickup | |||
  delivery | |||
  conference space | |||
  image | |||
  safety | |||
  security |
Now that you have identified the specific space needs of your HBB, where are the most likely spaces available in your home?
Space available in home | To be used for: (business use) | Comments, advantages, disadvantages |
Example A: extra bedroom | computer, FAX, phone copier, files | need to find another space for overnight guests |
Example B: family room | meeting clients | might be a problem when children are not in school |
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How will the space needs of your business affect the family?
The space needs of a household are determined by many factors, including:
Family space needs are based on both specific physical needs, such as sleeping space or seating space at the dinner table, and on values about housing. Housing values such as beauty, privacy, economy and prestige help determine the type, amount, and quality of space a family wants in their home. An important determinant of housing satisfaction is how well the housing conditions "fit" an individual's or family's values.
Success in integrating a business and family in the home can begin by understanding the housing values that the family members hold, and relating these values to space needs.
Which values are most important to your family?
Do family members differ on the importance of particular housing values?
What compromises will have to be made in order to achieve the goal of a productive HBB and a family home that expresses important values?
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What will your neighbors worry about? Consider activities of your business that may affect property value, or the character of the neighborhood. A business that disrupts the neighborhood, such as by noise or traffic, is more likely to lead to complaints. Consider carefully each of the following:
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Some initial recommendations as a result of research on HBBs are:
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List problems (from previous pages) | List projected solutions |
Examples: Space needs (family can't understand) | Meeting with family |
Interruptions to family | Discuss scheduling |
Not enough assembly space | Purchase work table |
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For more information, please contact your local Virginia Cooperative Extension office. Home-based business publications are available for purchase for a cost-recovery fee. Videos and other educational materials are available "on-loan" through your local Extension office. Educational programs are offered locally or through multi-county efforts. Program content is based on the needs identified in the local area.
The focus of this publication is managing the business space in the home to minimize conflict, with the goal of business success and family harmony. There are important tax implications as to how the business space in the home is allocated and used, and where business activities occur. Contact the Internal Revenue Service at their toll-free number to secure business publications to help you keep accurate records. Also, contact the Small Business Administration for other business publications.
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The Women's Research Institute and the Virginia Center for Housing Research, both at Virginia Tech, are acknowledged for their support of the research on which this publication is based. Appreciation is expressed to Patricia Lindsey, East Carolina University, for her assistance in the analysis of the research, and to Shirley Niemeyer, University of Nebraska, for her careful review of the publication. For full citations of the research that is the basis of this publication, please contact Kathleen Parrott, Virginia Cooperative Extension, Virginia Tech, Blacksburg, VA 24061-0424.
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