Working out of your home can present an amazing opportunity to take control of your career and live life on your own terms. It’s not something you should decide to do on a whim, though, and it presents a number of hazards that are likely to trip up the unwary. Here are basic ideas you should take into consideration when you contemplate going to work for yourself.

Before you do anything else, you need to write up a business plan. This might sound like an intimidating bit of white-collar bureaucracy. It’s true that the business plan of a large corporation can be an immense and complex document. As an independent operator, your business plan can (and should) be much simpler. At its core it needs to be no more than a few sentences. Describe what you plan to do, who you’ll do it for, and how much of it you need to do.

The next step in starting your home business is defining space for it. This is one of the most enjoyable parts of the whole process, as you get to design your ideal working environment (budget allowing). The more completely you can dedicate your workspace to your business, the more effective it will be. Having an entire room devoted solely to your work (with a door you can use to shut out the home) is ideal.

If you’re starting a home business as a parent, give some thought to how you’ll meet the responsibilities you have in both arenas. Be realistic about whether or not you can care for your children and do useful work at the same time. If combining the two activities isn’t going to work, look into a childcare arrangement. (Also, if you’re starting your business during the school year, remember that your business/parent dynamic is going to change A LOT when summer rolls around!)

Regardless of the line of work you intend to get into, it’s virtually certain that you’ll want to have a presence on the Internet. Set this up professionally. Get yourself a decent website with its own domain name and a formal-looking email address. Webmail (i.e. hotmail or gmail) is acceptable; having an address at your own domain name is better. If you need expert assistance with this, don’t hesitate to hire a consultant.

The earlier you take financial matters into account, the better off you’ll be. If you’re looking at your home business as a long-term endeavor, (and you should be) you need to take responsibility for all of the financial stuff an employer would take care of. This includes health insurance and retirement planning, as well as any liability insurance your work requires. Once you become self-employed, your tax obligations change dramatically. You’ll be submitting estimated tax payments on a quarterly basis, for a start. Read up on all of your new responsibilities and consult with an accountant if you need to.

Although working for yourself can definitely be a dream job, it has some real-world necessities attached to it. The sooner you take care of them, the better off you’ll be and the more you can focus on your home business. Addressing the issues raised in this article early on can make your business much more successful and hassle-free.