Thomas Koger's daily commute consists of two flights of stairs: from his second-floor bedroom to his basement home office. Envious? Well it gets better, at least for Koger, who has been working from home for the past eight years. In addition to avoiding rush-hour traffic jams, Koger has eschewed office politics and blue suits. But the best part of doing business out of his abode, says the chartered accountant and business valuator, is being able to spend more time with his family. That's really why he struck out on his own in the first place.

What's more, Koger insists that he hasn't sacrificed any of the benefits and amenities he enjoyed when he worked in a downtown Toronto office tower. Communication needs? No problem: Koger has five separate phone lines (home, two business lines, modem and fax) as well as a cell phone. Computer power? Koger has three PCs (two Pentiums and a laptop), along with a color printer, laser printer and a photocopier. Entertaining clients? His 300-sq.-ft. office has a meeting table, a well-stocked refrigerator and a separate bathroom.

For Koger, transforming his unfinished basement into an efficient working environment required an investment of $40,000 (a figure that includes the cost of the additional bathroom, furniture, computers and office equipment). But this capital outlay amounted to a "no-brainer," Koger says, because working out of the home makes so much sense from a time and money perspective. For example, when Koger worked for a Toronto accounting firm in the late '80s, clients were charged $275 for a basic business valuation. Today, because there's no need to factor in such high-priced overhead as rent and support services, "I can charge 60% less than my competitors, which means I bill $125 for that same valuation today," he says. "And even at that rate, there's more money going into my pocket."

Of course, Koger isn't the only one to discover the advantages of home-based employment. Whether it's due to corporate downsizing or technological advancements (or both), Statistics Canada notes that 1.1 million Canadians were using their homes as a workplace in 1991. By 2001, that number will likely exceed 1.5 million.

Still, putting together a functional and professional home office entails a lot more than simply borrowing a table and chair from the dining room. Douglas Gray, Vancouver-based author of the best-selling Home Inc.: The Canadian Home-Based Business Guide (McGraw-Hill Ryerson), says that before any would-be home-office entrepreneur buys a box of paper clips, the first step toward creating an efficient work space should be to do some research. Other good sources for tips and layout plans include the aptly titled Ideas for Great Home Offices (Sunset Books); Home Offices (Friedman/Fairfax); and Home Office Design: Everything You Need to Know About Planning, Organizing and Furnishing Work Space (John Wiley & Sons).

The intrinsic advantage of a home office is that it can be located virtually anywhere. A spare room, the attic, the garage-even a porch or walk-in closet can be converted to serve. Here's a run-down of some of the things you need to know when it comes to arranging your work area.

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About 90% of home-office entrepreneurs don't see clients at their home office. But if your home office is going to double as a venue for meetings, Gray suggests creating "an environment that will inspire confidence." In other words, if you are catering to a corporate clientele, it might not be such a good idea to display that Sports Illustrated swimsuit calendar prominently. Instead, opt for walls, carpeting, furniture and decor (plants, pictures, ornaments) "that would be found in a typical corporate office."

Also, as in Koger's case, a well-stocked refrigerator will curtail unnecessary visits to the family kitchen.

THE WORKING ENVIRONMENT

Whether you're entertaining clients or not, a key consideration for any home office is ensuring the work space is both well organized and comfortable. As Gray points out: "This is going to be the place where you'll be spending eight or more hours a day."

As well, the work area must be "user-friendly," says Anne Duffy, an ergonomist with Toronto-based Human Factors North Inc.

First, the room should be located in an area of the house where you'll be able to concentrate on your work. So, if the clamor of a nearby dishwasher or washing machine would be too distracting, look elsewhere.

You can never have too much desk space, so invest in two separate work-stations; one for your computer and its peripherals, the other for paperwork (a U-shaped or L-shaped configuration is most practical). To get maximum use out of your desk space, Duffy suggests placing the computer's CPU on the floor and attaching the monitor to a monitor arm (similar to a hinged desk lamp) so that it can be shifted off to the side when not in use.

If you're going to be using a computer for any length of time, take steps to minimize neck and back strain. "You must make sure that you're positioned directly in front of the keyboard," says Duffy, who has seen some home offices that were seemingly designed for contortionists. "If, for example, your keyboard is off to the side, that's going to be bad for the back, neck and even your limbs."

Height-wise, when sitting in the chair, the top part of the monitor screen should be at eye-level or slightly below to prevent neck strain. Worthwhile accessories to consider include a wrist rest (a device that is on the front edge of the keyboard, which may help prevent carpal-tunnel syndrome); a document holder (which allows for less arduous scanning from document to keyboard to monitor); and a track ball instead of a mouse (like the wrist rest, a track ball may help lessen repetitive wrist and hand injuries).

The position of the computer in relation to the windows is also crucial in terms of curtailing eye strain. "Make sure the sides of the computer are parallel to the windows," says Duffy. "If you're looking out the window or have your back to the window, you'll have direct glare in your eyes or sunlight reflecting off the screen."

If lighting is still creating glare, control it right at the source by investing in proper window coverings-thick and/or dark blinds that effectively screen out the sun-and installing an anti-glare screen on the face of the monitor.

THE CHAIR

Whatever you do, don't skimp on your chair. "The chair is the single most important piece of furniture found in the home office," says Duffy

In addition to providing good lumbar (lower back) support, the chair should have adjustable backrests and armrests. "It must be dynamic, meaning you should be able to adjust it for different height and angle positions throughout the work day," says Duffy "Otherwise, you'll end up paying the price in terms of back pain."

But don't confuse cushiness with comfort: there's no shortage of high-priced, leather-covered, executive-style chairs that lack tangible support. And while office chairs range from less than $100 to more than $2,000, Duffy says spending about $300 should "get you something that's pretty decent." She recommends such brand-name chairs as Harts, Nightingale and Obus Forme, and suggests taking a chair for a "test-drive." Most reputable office-equipment dealers will let customers try out a chair for up to a week so they can be sure they're purchasing the right type of seat.

STORAGE

What with reference materials, office supplies and the always-growing paper trail (records, receipts, invoices, research materials), storage space will always be a key consideration. The challenge, says Gray, is to ensure that "storage space does not use up work space unnecessarily." Indeed, sometimes you can make the need for storage space work for you rather than against you. For example, Gray notes that instead of buying a single four-drawer vertical file, opt for two two-drawer files so that you will be able to use the cabinet tops as an additional work area.

Inevitably, your storage needs will increase beyond the capacity of your office. That's when you must look to such areas as hall closets, the garage or the basement. But Gray cautions that you should be aware of such extraneous factors as cold, heat and humidity, especially if you are storing supplies such as computer diskettes. For the storage of important client, legal and financial documents, invest in a fireproof cabinet or rent a safety-deposit box at a bank.

It's also a good idea to extend your home-owner insurance to cover home office use. Most standard home-insurance policies specifically exclude using the home for any type of business use.

HARDWARE

Try to anticipate your present and future computer and telecommunications needs. For most entrepreneurs, that means making use of at least three phone lines (business phone, fax and modem). "Some people try to save money by having their phone, fax and modem all on the same line," says Gray. "Of course, you can only use the line for one of those functions at a time." That's not a good idea; there's nothing more unprofessional than having clients greeted by the constant pulse of a busy signal. There's good news about equipping your home office with computer equipment: on the bang-for-the-buck scale, there's never been a better time to buy. For example, a Pentium processor and a 15-in. monitor can be purchased for about $1,200 to $1,500, says Sam Marashi, a Toronto-based computer consultant. Just one year ago, that same system would have run upwards of $3,500.

When it comes to choosing your system, Marashi suggests buying a microprocessor that is fully compatible with Windows 98. (A typical home office will need word-processing, spreadsheet, contact management, accounting, web browsing and e-mail capabilities.) Marashi recommends a Pentium 200 or, preferably, a Pentium II series machine.

As well, Marashi suggests buying the computer and all the necessary peripherals at the same time. "Buying a complete system at one time and place is easier, often offers a costs savings, and gives you one place to go to in the future should you encounter problems."

Features to look for include: a 36.6 kbs modem (preferably upgradable to the new v.90 standard for 56K transfer); a hard-drive capacity of at least 2.1 gigabits (although 3.2 gigabits is preferable and the price difference is only about $50); 32 Mb of RAM; and a multimedia bundle with: an inexpensive 16 bit sound card, at least a 16X CD-ROM, and standard speakers. Finally, he reminds people to include a tape backup unit in their purchase.

As for Internet access, Marashi recommends that you "not base your choice on price alone - word of mouth, access to technical support, and speed of connection to the Internet are important items to factor into your decision."

UTILITY HOOKUPS

Your home office may be equipped with a computer, laser printer, fax machine, photocopier, air conditioner, space heater and several other pieces of electrical equipment. But older houses might not be up to the task at hand from a power standpoint. Also, keep in mind that computers have unique power needs. Operating your computer on the same circuit as a refrigerator, washing machine or other major appliance can cause serious damage to equipment or software if there are power surges. You will also want to make sure that computer equipment isn't near any magnetic field.

For peace of mind, Gray recommends hiring a qualified electrician to wire your home office. "It's not worth the risk to do the electrical work yourself," he says.

PRIVACY & ACCESS

Having a separate room or area with doors to close off the rest of the house and a separate business entrance will provide you with maximum privacy, says Gray. One approach is to convert a basement or garage for business-use only. If it's not possible to create a closed-off area, then compromise; for example, accept appointments only in the mornings, when your spouse and children are at work and/or school.

The access route to the office is also important for the overall business image. Will clients have to enter your office by first walking through the kitchen or living room? If you live in an apartment or condominium, will they have to get through a security system? And is there enough parking in the area to accommodate visits without inconveniencing your neighbors?

WASHROOMS

In some cases, you may be required by local regulations to provide separate washroom facilities for clients and/or staff. In any event, if you're planning on seeing clients at your home on a regular basis, it's a good idea to establish a separate washroom so that guests won't have to tip-toe around Junior's Lego blocks on the way to the loo.

NOISE CONTROL

To protect your office from intrusive noise, Gray suggests soundproofing the work area with thick carpets and underpad, heavy drapes and acoustic ceiling tiles. Applying weather-stripping to the windows and doors will also help, and look at investing in solid doors, as well as double- or triple-glazed windows.

It should be noted that like snowflakes, no two home offices are the same. While Thomas Koger invested $40,000 in his home-sweet-office, in many cases, a home office can be up and running for as little as $1,000 for basic office equipment (exclusive of computer requirements). The key to starting up any successful home office, says Gray, is to work within a budget while having the flexibility to anticipate future needs.

The last word goes to Tom Koger, who says: "If you do your home office right, you'll work just as hard, but hopefully you'll end up with better results."

The above copyrighted article is reprinted with revisions with permission of the author.