From speciality web-based shops, a home-based car service, to your own chiropractic clinic or massage parlour, running your home business can involve meeting registration requirements and other issues such as marketing and billing. A professional answering service may be invaluable for organisations of any size. Here, we look at the main issues you need to consider for running your own home-based business.

1. Council Approval, Registration, Licensing, and Insurance

If you have a particular business name in mind and will not be trading under your own name, you should register your business name with the relevant body in your state or territory or register a company with ASIC. You’ll also need an ABN, to be obtained from the ATO, and any other licenses or permits that apply to your industry or type of business. There may be other compliance requirements associated with your state or territory and your area of practice.

As a home-based business owner you need to check with your local council for regulations that can apply to pollution, energy or parking issues. You may be required to obtain a permit from your council if you exceed permitted levels of noise or want to put up special signs.

2. Insurance

Your home and contents insurance won’t cover you for losses or liability arising from the conduct of your business at home. You should obtain the appropriate insurance for your business:

• Public liability insurance – for clients and other business partners who visit your place of work


• Professional indemnity insurance – for those in service industries covering losses that may arise from professional negligence


• Business equipment insurance – covers any inventory, office furniture or equipment resulting from physical damage or theft cover


• Workers compensation – for any employees


• Income protection – covers loss from personal accident or if you become ill


3. Business Planning

Make sure you have a good business plan in place for the medium to long term. This will help you clarify your goals and budget successfully.

4. Design a Professional-Looking Home Office

If you will be seeing clients in your home office, invest in some nice furniture. Place some pot plants and amenities such as a coffee machine or water cooler in the waiting area and remember to display your credentials to establish credibility.

5. Set Up Marketing Channels

Think about how you will market yourself and your business. Be selective about how you use your marketing budget.

6. Consider Your First Point of Client Contact

How will clients – potential and current – contact you at first instance? For a sole trader or small business owner with limited time and resources, this is a crucial step in making the right impression. Using a virtual assistant ensures you make a great first impression and helps you sustain interest and accessibility even when you are personally tending to another client. Virtual assistants are also much cheaper than having an onsite employee.

7. Invoicing and Billing

Make sure you have a full invoicing and billing system in place well before you start. Computerised systems based on open source software are commonly available for free or a small service fee. Having a well-organised invoicing and billing system in place helps you keep of track your business cycle.

8. Support and Ongoing Skills

Lastly, make sure you have sufficient support and stay interested with ongoing professional development. Join some business groups or professional membership forums or sign up for seminars to enhance your business skills and meet other business owners. The federal government (through entities such as the ATO) and your local government run free workshops for new businesses on tax and other matters.