Your office should reflect your personality, tastes, work style. In essence, make your home office your own. Think comfortable, think cool, or think cozy -- but make sure it's functional and productive. Don't forget music. It has been proven that there is more productivity when there is background music. Again - choose the type that works for you.

Business hours
Having your office in your home has a unique set of adversities. One is not being distracted by friends and family that know you are at home. Set office hours, and keep them. Let everyone know the answering machine will be on during that time, and you will call them back "after work".

The right space
If you can, designate a permanent space devoted exclusively to your home office. Without a designated room or work space, you'll be less organized, and you won't be creating the psychological distinction between your home-life and your work-life that often makes or breaks the successful home office experience. Claiming a designated "home office space" fosters discipline and commitment. Ideally, a separate room, with the essential door. With your home-life safely outside the closed door, you'll find yourself more focused and productive. Not all homes have an extra bedroom, basement, or attic. Don't worry, there are other options. Look at corners, consider the space under your stairs, think about your bedroom or laundry room. In any room, screens or bookshelves can help define your work space, in addition to muffling outside noise. Plants or directed light can create space definition. Claim a space -- whether it's a separate room or a countertop corner -- and lobby hard to keep it your own private oasis.

Remodel or addition
First, make a thorough evaluation of the space you have. Consider the sources of light and noise, and the size of the room. Are there improvements, like partitions, screens or even doorways, that can create a more inviting and private space? You may want to bring in a professional decorator for just an hour or two to get more ideas and make sure your own ideas will work. Appropriate wiring is a priority. A variety of outlets means equipment and lighting can be easily moved, allowing for flexibility in room design. Consider an outlet in the middle of the room, built into the floor, to provide maximum flexibility. Whether you are immersed in technology now, or just beginning -- a home office requires attention to everything from proper circuit loads to surge protectors. New windows can improve a home office significantly - access to natural light will make the work environment more comfortable. Whether you're knocking out a wall, or adding on a new room, have an architect review your plans before construction begins. Make sure your home's original structure remains un-compromised.

Furniture
Take a look at home office furnishings from the perspective of function, design and ergonomics. Your desk should accommodate the size of your equipment, the lighting should come from three, distinct sources (natural, ambient and direct), and your chair should provide ergonomic support. Don't scrimp on money here - remember if you get back or eye strain from poor lighting and furniture - it directly reflects in the amount of time and money you can make in your business.

The right equipment and supplies
Make your home office work as efficiently as any traditional office. Plan and budget for the supplies and equipment that are needed to make working at home productive.

Order all your printing needs - Business cards, letterhead, stationary, invoices etc.

Plan and budget for ordinary supplies. Many retailers specialize in smaller packages of office supplies designed for the home office worker. Consider how you'll store and access these supplies. Built-in shelves and storage work best -- and help define the space. Or think about keeping the bulk of your supplies in another part of the house. If necessary, keep only a week's worth of daily needs within arm's reach. Having an uncluttered space will improve your efficiency and productivity.

Plan carefully for equipment purchases. Make your computer pay for itself - your home office computer may be able to do double-duty as a traditional fax and copy machine.

Software for communication and accounting

MS Office - I know it's a Microsoft product and many don't like anything to do with Microsoft, however this program has all the programs you need to conduct normal business both online and off. The real advantage here, is how they all tie in together, the spreadsheet can be added to the middle of a letter, or included in a database. etc. This package includes Word processing, Spreadsheet, Database, Email, Project presentation programs.

Dreamweaver - This is the program I use to design websites and create html pages. It is easy to use and has a lot of advanced features, if you need them.