Many small businesses start out in the home. If you have a home-based business, it's usually a one-person operation, and the work performed can be anything from accounting to writing. Working at home, however, usually succeeds only if you are a highly motivated self-starter. Are you disciplined enough to establish a regular work schedule and stick to it? If you work out of your home, don't let other obligations interfere with business. Housework, yard work and other distractions may make it easy to neglect work.

Also, ask yourself if you will mind the solitude of working from home. It can be lonely, and if you're a "people person," you may find it difficult to be productive at home. You can try to overcome this problem by getting out each day to visit clients or customers and by staying active in professional organizations. There's an added benefit: These organizations often provide good opportunities to network and may yield new contacts or clients.

Certain expenses for a home-based business may be tax-deductible. If your home office meets certain IRS requirements, you may be able to deduct a portion of your mortgage interest, utilities, property taxes and insurance as business expenses. To qualify, the home office generally must be set aside exclusively for the business or be used to conduct administrative and management activities of the business, provided that there is no other fixed location where these activities are conducted. You may also be able to deduct the costs of traveling to and from your home to other locations to conduct business. Tax rules in this area are subject to change and may depend on your specific situation, so consult your accountant or tax advisor for details.

Special Concerns of Family-Owned Businesses
Passing the business from one generation to the next is a special concern for family-owned businesses. Succession problems usually can be solved with open communication and expert help.

Start by sitting down with family members to discuss the future of the business. It's important to create a plan that members of the next generation can agree upon, assuming they are interested in carrying on the business. If they're not, you'll need to prepare to sell the business to an outsider when you decide to retire.

You and your spouse should have updated wills that clearly state your intent to have the business stay in the family. Create an estate-planning team that includes experienced people you can trust to ensure a smooth transition.

Running your own business is a demanding but rewarding adventure that can yield financial success and a greater sense of accomplishment and contentment than you ever had working for someone else. Use the information in this article to help bring continued success to your very own business.