The idea of starting up a home-based business has become a significant reality for many people in today's world and is likely to increasingly become the norm in many people. This is because the term home-based business means a variety of things. It can literally be a business that starts and runs from your home, or it can equally apply to people who do any type of freelance contract work and are based at home rather than from an office. The nature of the labour market in many countries means that many people work part-time and a significant proportion of that time is spent working from their own home.

The Internet has also opened up many opportunities for people to effectively be self-employed or run business that are based around a computer or tablet. These types of business are also classified as home-based businesses. There are many patterns for this type of work both good and bad and this type of businesses is often gone into out of necessity rather than as a specific choice.

In many ways in deciding to set up a home-based business, the questions and issues involved are no different to those starting out any business. The main difference perhaps lies in attitude in that people who work from home but either running an Internet business or working as freelance or contract workers do not necessarily think of themselves as running a business. The implications of doing so do mean there are certain things that need to be looked at.

If you are running a business from home you need to know to confirm the situation concerning your own domestic house insurance. Many insurance companies will exclude the option of a business being run from someone's house largely on the grounds that it exposes them to a much greater liability risk from customers or clients visiting the house. Depending on the nature of your business it may be possible to get an extension to your insurance policy that allows you to run your business from home.

It may equally be that the nature of your business does not include having clients or customers visit home and that the work you do is of such a nature that it does not involve any extra risk to the insurance company. The insurance company will be happy with this, or should be happy with this, but they need to know. It is what is known as a material fact in insurance terms and they need to be advised accordingly.

One of the other issues concerning a home-based business that is often overlooked is that of boundaries. This means simply that it is important in some way to establish either literally or emotionally boundaries within your home as to what constitutes work and non-work areas. This is especially important if you have family with you at both a practical level and in terms of in some way regulating what relates to your work and what relates to your personal or family life. This is often an incredibly difficult area to negotiate but is very important.

Author's Bio: 

Peter Main is freelance writer who has spent almost twenty years in the insurance industry, working at Lloyd's of London. He writes extensively about small business insurance and in particular about how understanding the various factors that make up the different liabilities that small business's may have to deal with, such as liability insurance