Dr Jeff Cornwall

Home-based businesses and entrepreneurs creating virtual offices, which total in the millions in the US, have a new array of tools to connect with employees, colleagues and customers. From the Wall Street Journal:

Last year, Dave Novak sold $1.2 million of luxury steam-shower and bath equipment, importing wares from China and reselling systems for $2,500 to $4,000 apiece under his own brands, like American Steam and Rockstar.
And he did it from his 20-month-old son’s bedroom in Fort Wayne, Ind.
Mr. Novak, 27, runs Novak & Co. LLC from home using a MacBook Pro computer and iPhone — leveraging Internet-based tools that make the need for traditional office space increasingly obsolete for many entrepreneurs.

Google Apps offers services tailored for small business including communication tools, publishing tools, and web management.
Microsoft Office Live has three packages of services for small business that range from a basic package that is free to their premium bundle of services for $39.95 per month. (Please, all of you Mac-heads out there forgive my mention of the evil empire).
The upstart startupnation.com, the brainchild of Jeff and Rich Sloan, has a great set of tools and tips for start-ups of all types. They also link to Office Live as one of the tools at their site.
An important caution is to make sure that you won’t quickly outgrow the tools you choose. Just as many of us have learned with our accounting software, migration to another set of tools is not always easy. Try to envision your needs for the next couple of years to make sure the applications you choose still work as your business grows.
Make software planning part of your business planning. Try to envision your needs at least two to three years into the future.