Set up a basic model or business plan for the home venue to cover both the logistics and finances. Include a written statement of what you hope to accomplish by creating such a venture.
Work on the physical aspects of transforming your home into an event and music venue. You may want to contain the staging portion to your basement or another large open space. Make sure to separate the rest of your house to avoid damage to your personal items.
Get a permit from the city if you plan to have more than ten to twenty people over on a regular basis. Local regulations will vary by city and state, but in general having an event venue in your home violates legal regulations without filing the proper paperwork.
Talk to your home insurance carrier about possible insurance plans to cover any damage or injury that may occur during a show. This will avoid irreparable damage to your property, and more importantly, will prevent you from being sued.
Consider what type of music or events you would host. Tailor any advertisement or decorations to meet these needs.