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We own a small home, and consequently my home office is in a very public area of the house. And this has happened more often than I've liked: I'm on the phone with the CEO or Marketing VP of a client company, and at that moment, one of my sons has decided to put a good tease on my three year old daughter.
There's no good way to undo that; however, I do often remind my clients that I work from home, the kids live here, and the quality of my work speaks for itself. (A happy subcontractor is a good subcontractor!)