Starting a business from home...

• Anna Johansson,

Flickr/izzatFulkrum

What do Google, Apple, Microsoft, Amazon, Disney, and Hewlett-Packard all have in common?

Aside from being multi-billion dollar corporations today, all six of these respected firms were started in the founder’s garage.

These sterling examples show it's entirely possible to launch a business from one's home, and not only possible, but sometimes the smart choice when capital is low.

Starting a successful home business

Many firms started in garages, basements, or living rooms before they moved to formal office buildings.

At the same time, though, many others have failed to move beyond this initial stage. The difference lies partly in how serious the founders are about their businesses.

If you want to be successful and reach the point where you can grow and establish a permanent office location, you’ll need to implement and follow these five tips.

1. Understand the rules and regulations

Every region has its own requirements with regard to what classifies a business and where a company may be located. Your due diligence will include checking with city and county regulations as well as neighborhood bylaws to make sure you aren’t breaking any rules with the kind of business you plan to launch.

You can use the US Small Business Administration's permit tool to find out more about the licenses and permits required in your area. These may include any or all of the following: general business license, professional and trade license, home occupation permit, sales tax permit, health and safety permits, sign permits, construction permits, and undoubtedly more.

The last thing you want is for your business to get into full swing, only to have someone come and shut it down.

Butch Dill / Stringer / Getty Images

3. Set up a secluded office

Every home business needs a home office. Although you might pack boxes or manufacture product in your garage or basement, there also has to be a secluded space where you can get work done without being distracted.

You don’t have to go overboard with the space, but do what you can to make it your own. Ahome office that's both functional and stylish could increase productivity and output.

It will also give your business a more professional feel. Don’t spend a ton of money on an office early in the process, but definitely address this aspect sooner rather than later.

3. Ensure there's adequate space

In addition to your office, there needs to be adequate space to work. If your business is heavy on the production side, you’ll probably end up using your garage. Tim Abbott of the Indiana Small Business Development Center suggests envisioning the process from start to finish through a unique practice exercise.

"A good way to do this is to completely empty your garage of anything that is not necessary and place the equipment that you already have where you want it to go," Abbott wrote on the ISBDC blog. "Then fill in the gaps with things that you do not have, such as tables for assembly areas, staging areas, etc. by drawing them on the floor with sidewalk chalk. This should give you a really good idea of the use of your space and can be easily moved around by erasing the chalk and starting over.”

The same thing can be done in your basement, but without chalk. Instead, use painter's tape to mark off different areas. This should give you a fairly concrete sense of what can fit before you start to do a lot of heavy lifting.

Flickr/Chirantan Patnaik

4. Leverage the right technology

Part of what makes starting a business out of your home so practical in 2016 is the versatility of new technologies. In order to be successful, you'll have to identify and leverage the right tools and software.

In addition to free tools and resources like Google Drive, MailChimp, Nibbler, and Docracy, there are hundreds of low-cost programs that will help you stay on top of everything from accounting to marketing. Take your time to research these technologies and don’t treat the decision process lightly. The tools you choose may very well determine your outcome.

6. Have the appropriate mindset

It's absolutely necessary to have the right mindset when you launch your business. You need to view it as a normal, full-fledged business that happens to operate out of your home. Perspective is everything.

Running a business from home is going to be different from operating a business out of a traditional office space in a number of ways. You have to be extra careful about how you present the brand to customers, and you must ensure all legal obligations are taken seriously and observed to the letter.

If you do all of these things right, there's nothing to stop you from becoming the next big success story.

Anna Johansson is a freelance writer, researcher, and business consultant from Olympia, Washington. A columnist for Entrepreneur, iMediaConnection, and more, she specializes in entrepreneurship, technology, and social media trends. Follow her on Twitter and LinkedIn.