A home based business brings a lot of refreshing ideas to mind such as coffee breaks in the backyard, giving time to your kids in between tasks, nap time during breaks, and many more. All of these seem luxuries to a person of today’s era, especially if they are currently running a business somewhere far from home and have a lot of traveling each day. This also seems very appealing if you manage your family and kids at the same time. If you have obvious reasons for staying home and managing your office work from there, it’s definitely something to think about. Or, if you just have started a business and have not earned enough to pay for a leased office space, it’s a good option to save money.
Guide to Running a Home-Based Business
Besides all of the benefits, running a business from home does not leave you without business liabilities. If you are thinking about making this change, here is a guide to get you started with running a home-based business.
Step 1: Prepare Yourself for the Decision
Ask yourself the following questions to if you are wondering whether or not it would be beneficial for you to stay home for office work.
1. Can you manage the interruptions if you are working from home?
2. Can you bear the isolation during working hours if you are living in an independent suite not shared by any of your family members or friends?
3. Do you mind your clients coming to your personal space? All clients may not be of the type to be welcomed into your home.
4. Are you planning to grow your office and hire people? This will also require more space and furnishings according to the requirements of your office. If your business is growing already and more space is required for your employees, storage, and equipment, you are probably going to need to look into leasing a space.
Compare your home-based business with leasing an office space
Leasing an office is a very good option if it is in your vicinity with low rent and overhead costs. The cons of leasing an office will leave you bearing annual increase in rent, added utilities, etc. When you are deciding between a home-based business and leasing a space, consider all of the costs incurred with both.
Step 2: Create an Environment of an Office in your Home
Furnish a space in your home with all of the needs of an actual office. You may want a completely separate room so that you can contain your work space to one place. It’s good to keep a separation between work and home, even if you are working from home. If you need to buy accounting software or other equipment, consider what you need to make your business a success.
Your home-based business office should be per the requirements of your business. It’s environment must not turn away your potential customers/clients. You can make it warm and cozy, but be sure to keep it professional as well.
Step 3: Put Your Talents and Skills Together and Generate Business IdeasBefore launching your business, consider the following “to-do” list:
- Tax preparation
- Business manager
- Professional organizer
- Virtual Assistant
Step 4: Figure out the costs. Do an audit of your own business. Challenge yourself to improve with every passing day.
Consider the following benefits of home based business.1. The best thing about a home-based office is that you are not going to pay for an additional space for your newly started small business that has yet to make its worth.
2. You do not have to pay monthly or annual rent for a home office space.
3. Your business is new and it could take anywhere from 30-90 days to start making money. Meanwhile, you will need to get a loan if you choose to rent a leased office space.
4. A home-based office means lower overhead costs.
5. You can outsource service providers for your business without hiring them, For example, accountants and contractors.
6. For new businesses, there is a tax-driven advantage to starting out of your home. The IRS allows home-based small business owners to deduct a proportionate part of their home expenses off of their annual taxes.
A home-based business has many potential benefits. Rent and utilities cost less. Taxation matters gives some exemptions. There are low overhead costs. Create your idea, plan it out, work on your plan, and your home-based business is ready to launch.
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