Conducting business from home is not an old method but is still not very prevalent. The practice of telecommuting or working from home allows a person to do their job from the comfort of their own home, using an internet or similar connection to deliver work to their boss.

A home business is just like this, maintaining either your own business or working as part of a larger company without the need to go to an office. Working from home is often linked to goal orientated management styles which focus more on results that on watching employees. The system works very well with jobs that require set end results in a set time such as processing forms or making a set number of sales by telephone. Jobs that need constant interaction like a design group work poorly with telecommuting.

With the advent of cheap and user friendly computers and laptop computers, a person can set up an office in their own home, needing only a telephone, computer and internet connection. Then, the list of forms that need processing, or spreadsheets that need filling in, can be done entirely at home and then sent electronically to the boss without needing to go to an office building. A company network system can allow the home worker to login to the companies' central computers and access any information needed or contact other workers. Another advantage is the time and cost saved by not needing to travel. Without commuting the workers do not spend as much on petrol, they cannot be late for work, they produce less carbon emissions. The company saves on office buildings and parking, and can employ mothers, disabled people and people from rural areas, which is a tremendous boon for both the company and these people.

Of course there are drawbacks. There is less social interaction between workers which can reduce job satisfaction, and some people just are not disciplined for working without a boss watching over them. When left to their own devices, the worker is more tempted to cut corners or put work off. Also computing costs are higher at the main office and the chance of confidentiality leaks are higher.