You might need to experiment with this since you have a live site up and hopefully you are running something like WAMP or LAMP on you computer for your development site.
Make sure you have permalinks on “Post Name”
Go to Dashboard >> Appearance >> Customize >> Select “Static Front Page” :Under Front page Display: “A Static Page” :Select the following: Front Page (i.e. Home) :and: Posts Page (i.e. Blog)
You might need to hunt a little if you don’t find these links. Each theme seems to have their own name and location for “Customize”
This can be a little tricky but experiment with it and when you find the correct combo on your test site do the same on your live site.
I would suggest trying to get your site to load in 3 seconds or less. There’s a couple things that will help:
Remove/delete all plugin’s that are not active
Use plugin Quick Cache (just enable it)
Reduce picture resolution (use pixlr.com it’s free)
Test speed at pindom.com/tools it’s free
Hope this helps,
gk