Step 7: Choose A Location

Where you locate your workplace and how you set it up help determine your chances for entrepreneurial success. If you're a sole proprietor who will work at home, or someone who will provide services primarily at your clients' premises, a basement or spare bedroom may suffice. If not, you'll likely need to scout out the ideal location for operating your venture, and arrange to lease and renovate it, before setting up shop.

For many small-business owners, the advantages of working at home are plenty. Homebased offices provide significant tax benefits, don't require commuting, and generally involve lower start-up costs, fixed costs and rent expenses. Homebased entrepreneurs can wear comfortable clothes to work and enjoy greater scheduling flexibility.