Personally I have no problem with a small business being run out of a basement.Or loft.Or converted garage next to the residence.
If the legal niceties are observed,why not have one's work a few steps from home? Especially in mail order where there won't be customers traipsing through the home,it seems great.
No commute, meaning less waste of time traveling ,fuel burnt,car worn out,etc.
Less leased office park space ,taxes,utilities,etc all help to make it possible for a modest cash flow business to survive.
In the older sections of towns here many dentists,doctors,and shopkeepers lived in upstairs or side apartments, and only the street level,or a portion was used for commerce.
Now only the undertakers(funeral directors) seem to continue the practice.Outside city limits there are still owner operated auto and other service shops so it is government rules that most likely ended the practice in town.
Just keep the business rooms separate and it ought to be no problem.
