Working for yourself can have many advantages - but you have to be the right sort of person with the right business idea to take the plunge.

The timing also has to be right. In early 2000, thousands of people who quit their comfortable jobs to start a small business had their home-based working dreams shattered by the dot com collapse.

While the thought of working your own hours or spending more time with the family can be a great attraction, there are some particular character traits you need in order to survive living and working at home.

High performers and people with excellent self-discipline generally do well. Management skills are essential. You are on your own, so do not expect encouragement or direction. So if it is compliments and feedback you want, then stay right where you are!

Another issue, no more meeting in the office kitchen for a coffee and a quick chat, or popping out for a quick lunch. Social interaction decreases, so you need to make the effort to get out of the house. Joining a gym or exercising regularly is good therapy for the body and can help avoid those feelings of loneliness and isolation. When friends do drop in unexpectedly, make sure they understand that you are working or you will have nothing profitable to show for your time.

Many small business operators start out in search of the "seachange" ideal - yet they often take on more and more commitments for fear that work may dry up. Careful, that's when you may find yourself busier than you were in the big corporation!

There are some exciting advantages to starting your own business, but weigh your decision carefully. Being able to leave the office behind on a Friday evening, sharing tasks with a team of colleagues, or taking four weeks leave a year is something most home-based employees often find difficult to achieve.