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Lower overhead costs and convenience make a home-based office attractive to many entrepreneurs. And in today’s economy more people are turning to at-home options from bookkeeping to graphic design to help make ends meet.

But creating the right space requires planning, proper licensing and design know-how.

Local professionals offer their insight on creating a functional, yet comfortable, home office.

The right space: Existing home

The No. 1 priority is identifying dedicated space to convert into an office, according to Merge Creative owner and environmental designer Anne Croney.

Fortunately, homes that were built without a designated space often have other rooms that could double as a home office, says Sherry Sarine, owner and design principal at SSI Design Group.

For example, Croney has transformed dining rooms and closets into offices.

Other options include a spare bedroom on the first floor or a bonus room, Sarine says.

“I have had clients convert a little used formal living room into a home office with great success,” she adds. “It’s usually close to the front entrance to the house and convenient for clients or visitors to enter and exit without getting into the back common areas of the house that are more likely to be heavily used.”

The right space: New construction

New home construction offers the ideal situation for those planning to run their business from their home.

R&K Investment Properties owners Rich and Kathy Dumas were able to get exactly what they wanted when they built their home in The Vineyards at Summerfield more than three years ago.

The custom builders designed their approximately 9,500-square-foot home to include an office with a separate entrance, bathroom, kitchen area, work area with desks, and a roomy conference room for client meetings.

The Dumases, who worked with Sarine on the design, planned ahead with the electrical and cable outlets, dedicated circuits, and work areas they knew they’d need not only for their needs, but also to make their customers and off-site employees comfortable when they visited the office for meetings.

Being able to visualize the space was important to their plan and is equally critical to their customers, they say. Both the Dumases and Sarine review blueprints and floor plans with their clients to ensure their concept is achieved.

“A floor plan lets them get an idea of what their room will look like when completed and allows them an opportunity to make changes on paper before the construction gets under way,” Sarine says. “They can then approve the layout and best determine where their desk or work surface will go; where they will place their base station for their phones; where they will need wiring done for their computers; where the cable or Internet connections need to be placed, etc.”

Defining the space

The office plan, whether for an existing or new space, starts with the business needs.

Sarine’s system when working with clients on designing a home office includes a checklist of questions, such as:

1. How many people will be using this space at the same time?

2. Will you need this space to be private? (In other words, will nearby family activity distract or interrupt your work?)

3. What tasks will be performed?

The key is defining your needs and working within those parameters.

“I create areas for specific things,” Croney says. She divides space into zones for work areas, storage and office equipment.

Another consideration is whether clients will be visiting the home-based office, which would require more privacy to ensure family and work don’t collide, facilities for visitors such as a restroom, and a more formal set-up.

“A separate entrance for a home-based business is always preferred because it gives a more professional impression to the client or customer,” Sarine says.

Office essentials

Thanks to technological innovations, home-based offices have become easier to outfit.

A wireless office is a must for Croney because the technology doesn’t limit where equipment from phones to computers to fax machines can be placed.

Another home business necessity is good lighting. “There’s nothing worse than sitting at a desk or workspace and getting tired because you’re straining to see your work,” Croney says. She suggests track lighting as a solution for adding the amount of light needed to complement existing fixtures.

Sarine also stresses the need for adequate lighting, which could include fluorescent or task lighting, depending on the business.

Electrical outlets, such as floor outlets, also are important. “Older homes might need to have additional wiring provided where it’s needed or convenient for the use of printers, computers, fax machines and the like,” Sarine says. “And your electrician can typically provide additional wiring or receptacles where needed, but might need to cut into your easily reparable Sheetrock walls if need be.”

Maintaining balance

Despite the benefits, the building and design professionals say a challenge with a home-based business is ensuring that work doesn’t interfere with everyday life.

“Definitely separate it out,” Croney says. “Put doors on a space — separate the personal from the work. Otherwise you never go home.”

Kathy Dumas jokes that she and her husband’s office is “a blessing and a curse,” but the good outweighs the bad for the couple, who build about 10 homes a year. “There’s a lot of convenience because of the hours we work.”

While the Dumases enjoy the advantages of their office — including working into the middle of the night, if necessary — they also have a system.

“When we leave here, we don’t talk about business at the dinner table,” Kathy Dumas says.

Rules and regulations

Aside from design and construction professionals, home-based business owners also should consult local government agencies regarding requirements such as permits and licenses.

When it comes to businesses in Greensboro, the terms are pretty straightforward.

All businesses must have a license, says Teresa Childress, assistant collection manager with the city of Greensboro.

The requirement is authorized by the N.C. General Assembly and City Council, according to the city’s website, to help the city ensure that businesses are operating in areas that are properly zoned and that businesses with activities that put special demands on basic services share in the associated cost. The rule applies to “any individual, partnership or corporation operating a business or engaged in business activity.”

Residents can find out more about the city’s business privilege licenses by calling 373-2501 and about zoning regulations that may apply by calling 373-2630.

Rules vary by municipality and governing agency. For instance, Guilford County limits its business license requirement to businesses that sell alcohol or firearms or provide massage services, according to officials. Residents can call 641-3363 for details. But a home occupation permit is needed, according to planner Randy Stanley. The planning department website (www.co.guilford.nc.us/planning_cms) has information about the permit and the restrictions on types of businesses allowed.

New construction and remodeling projects also may require permits.

The latter includes renovations to a separate building on your property, such as a storage unit that could be converted into an office, as well as projects that make structural changes from moving walls to upgrading electrical and plumbing equipment.

Though the permits may seem like a hassle, Sarine says they actually “protect you as the homeowner because inspections of your contractor’s, plumber’s or electrician’s work, for example, will need to be made to ensure that the job has been done correctly and according to code.”

Financial perks

Knowing the government rules also offers benefits for home-based business owners.

The IRS home office deduction is one way business owners with home offices can save money.

To qualify, the business owner must regularly use part of the home exclusively for conducting business and show that the home is used as the principal place of business.

According to irs.gov, “If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs and depreciation. The home office deduction is available for homeowners and renters, and applies to all types of homes, from apartments to mobile homes.”

Other financial benefits for home-based business owners: saving gas sans a commute and paying fewer office costs.

“It’s zero rent,” Kathy Dumas says. “What I like best is the convenience of not having a lease.”