You have read my last discussion on finding your niche as a consultant and you have decided to take the plunge and become a consultant, or maybe you’re just going to get your feet wet, now what? Now you have to find a new place to work. Some new consultants have the resources to rent office space downtown or in a strip mall which can be great exposure for their new venture. But most new consultants choose to create a home office. You’re the boss, the choice is up to you!

For this discussion, we’re going to focus on establishing a home office. We’ll look into what is needed for a home office furniture collection. We’ll take a look at some essential home office equipment and determine our tools of the trade. We’ll touch on some of the financial incentives for establishing a home office. And lastly, we’ll discuss how to incorporate the use of outside support services to compliment your consulting needs.

Maybe you have a den or a spare bedroom. Possibly, you have room in the attic or basement or alternatively you have space in or above your garage. It can be wherever you choose as long as it is separate from the main rooms of your home. For example, you wouldn’t want your office to be a quiet corner of your family room because you want a space which offers no distractions. Your space should be well ventilated. It can be large or small because you’re most likely never going to have clients over. Unless your clients are online, you will be visiting clients in their environment.

You’re going to need a desk with plenty of workspace and a very comfortable chair.  Don’t skimp on the chair, you’ll probably be spending a lot of time in it, so spare no expense.  Decorate your office with things that inspire you.  Pictures of your family are great because they remind you of why you work so hard.  Pictures of your pets, places you would like to visit, or that sailboat you plan to purchase someday are all inspirational because they are a constant reminder of your ultimate goals.

You will need a dedicated phone line, one that is separate from your regular house phone.  There is nothing more unprofessional than being interrupted on the phone with a client by your children or others in the house wanting to use the phone too.  I suggest trying the Magic Jack.  It’s a VOIP system that plugs into a USB port.  For less than $20 a year, you get a dedicated phone line with your own phone number and also a toll free number if you desire.  You use it with any regular house phone and it’s portable, meaning you can take it wherever you go and you will never have to miss a call.  I use it with a DSL connection and have great clarity.  I’m certain it would be even better using a cable connection. 

You will need internet service, DSL is fine but Cable would be better.  Your computer can be a desktop or laptop or preferably both.  It can be PC or Mac, depending on your needs and what you are comfortable with.  Having it portable is preferable because if you need to meet with clients you can use your laptop as a visual aid.  When consulting to small or large groups, it is recommended that you invest in a LCD laptop projector and a portable screen in order to give PowerPoint presentations.  Of course, it all depends on the type of consulting you do.

You will need a fax machine.  I suggest an all-in-one printer/scanner/copier/fax.  It is super cheap compared to purchasing a separate unit for each function.  And lastly, you will need an assortment of office supplies.  These include: stationary and letterhead, writing utensils, envelopes and postage, large wall calendar and peg board, and don’t forget a personal organizer to keep track of important contacts, appointments, and To-Do lists.  As your business grows, so will your office needs.

I’m not going to get into all the specifics here, but in the United States, having a home office can be beneficial to your taxes.  A portion of your home can be written off as a tax deduction.  Also, the cost of doing business including every expense to use or supply your business can be tax deductible.  Consult with your tax professional for further information.

Every consultancy has different needs.  The common support services include a lawyer, an accountant, and a banker.  Some not so common support services may include clerical support or an executive assistant.  You may even consider outsourcing some of your work load.  Yes, you can do that.  In fact, outsourcing some of your work can greatly affect the overall professionalism of your consultancy by getting larger projects completed on time along with all of your other projects.  A good place to look for outsourcing is on guru.com or elance.com.