Faced with retrenchment, or simply want to start out on your own? If you're about to take the leap and set up your own business then creating a home office is the most cost-effective way. But there are lots of factors that you need to consider for a successful home office.

Get it right the first time round with our guide to setting up your own home office...

Location

Depending on the nature of your business, your desired location will be different.

If you're a freelance writer for example, then there's no real issue with setting up a space inside your house, but if you're in advertising and are planning on having professional client meetings at home, then having your children running around knocking things over is a complete no-no.

In the latter case, rather consider setting up your home office in rooms outside of your home, preferably with a separate entrance, so that you can maintain a professional atmosphere.

Finding the 'right' space

With a little bit of thought, you could easily transform an unused space in your home into the perfect home office.

For those home-based business owners without a spare bedroom, garage or loft to take over, why not empty out that built-in cupboard and transform it into your new workspace?

Make sure that:

• You feel comfortable working in this space
• There enough space to work effectively
• You will you be able to concentrate
• The noise levels are bearable
• The space can accommodate your electrical needs
• You can make changes to the space

Laws regarding home offices

When setting up an office from home, you will need to apply for the appropriate permits to run a business in a non-business area, as well as find out about any restrictions. Your local building and zoning department will be able to help you with this.

Layout

Decide on the layout of your home office beforehand, and draw a sketch of the area (measuring beforehand) so that you know what will go where.

It's important to have a workspace that is not only functional in terms of layout, but that is visually appealing and inspiring too.

All about the money

Although you will save money by not renting office space, be aware that you will need to equip your home office with items such as a computer, fax machine, and you must have internet access — all of which cost money.

Then there's furniture and stationery. Have a look around your home to see what furniture you can use and if you have any spare stationery lying around.

The most expensive furniture will be a solid, spacious desk; a good-quality comfortable chair; and some form of storage space for files and documents.

Spend as much as your budget will allow on these main items, adding extras as you go along and as the money comes in. Setting aside a small amount of money each month for stationery and the likes is an easy way to get everything you need.

Create an ergonomic office

Although you don't want to break the bank, working at an inappropriate work surface (which is the wrong height, for example, like a kitchen countertop) or sitting for hours in a rigid chair in front of a computer screen, will eventually take its toll.

In most cases you will spend at least eight hours a day at your desk. It is vital that your desk and chair are optimally aligned to prevent back, wrist and neck strain.

Ideally your chair should be fully adjusted so that your back and neck are straight, with your elbows bent at a 90-degree angle, and your monitor should be anywhere from 46 to 61 centimetres from your eyes, with your keyboard five centimetres lower than the writing level.

Lighting

There are two main sources of light that one needs to consider.

General lighting fills the workspace and will come from a central light source — this is usually the sunlight that fills the room during the day and a ceiling light at night.

Task light is provided by a lamp or desk light and is used to direct light to a specific task — the book you are reading or worksheet you are completing. This light needs to be positioned correctly so as not to cast shadows over your work area or a glare off your monitor. Lamps with long, adjustable heads, necks and arms are a good idea, as they allow for maximum flexibility and can also be used in various, poorly-lit areas of your office.

Storage and filing system

First and foremost, find a system that will work best for you. Don't just go out and buy what you think is appropriate, rather assess what the nature of your paperwork will be first, along with the materials you will need to run your business and any inventory you will need to keep.

For a filing system to work it must be easy to maintain and the information must be easily retrievable. Assess whether you want to keep documents in lever arch files or filing cabinets. Do you want them organised in an a-b-c filing system, keyword system or colour-coded?

Once you've worked out a system, discipline yourself to plan, sort, organise and maintain it.

Wiring

Cables and wires running from printer to computer, or from wall plug to fax machine can create a tangled, unsightly mess. And in addition to being an eyesore they can be very dangerous. Take the time to cable your workspace correctly using cable ties, glue guns, and even industrial masking tape.

Even better though, is to invest in a wireless router and notebook, which will alleviate unnecessary computer cabling. If you do invest in a laptop, consider purchasing a second power supply — keep one in the laptop carry case for charging on the go, and keep the second permanently affixed to a power point near your desk.

Business tool

Install an answering machine for when you are not there, or subscribe to a voicemail service. It is imperative that you have something set in place — a missed call could be a missed client.

Insurance

Depending on the size of your home business, it would be a good idea to take out a commercial policy to cover your equipment. A commercial policy is a tax deductable expense and would also cover any liability for client loss or injury on your premises. Speak to your broker and undergo an assessment of your business in order for your broker to provide you with the best possible cover for your needs.

Now for the décor

Lastly, once all these things are in order you can think about extras that will make your home office look good. Aesthetics in any case are imperative for a healthy work environment.

Remember to keep décor minimal and clean, you'll definitely feel less pressured and cluttered for it and it will help you to focus on what's most important — making your business a success!