Home businesses are more popular now than ever before. What better way to set up a company than by handling everything in the comfort of your home?! There are no morning commutes, and no uncomfortable offices; you’re in full control of everything and can enjoy a less stressful experience.
Running a home business comes with a few concerns and considerations. The obvious one is whether you can afford to do so. It’s a financial risk, though if you’re happy to take the plunge, it could work out for you. Your goal now switches to ensuring your home business is set up in the best way possible to succeed. Here are three big things to think about before you attempt this:
How does it affect your home insurance?
We’ll start with more of a mundane thing to consider; what will running a business from home do to your home insurance? It usually won’t affect the premiums, but the problem lies in what’s covered by your home insurance when you run a company from home. Some insurance providers won’t cover anything of your business equipment as technically it’s part of your business rather than your home.
As a consequence, you will need separate business insurance, or you could fill in a Quitclaim Deed Form to put your home under your business’s name. This can offer better asset protection and it’s also slightly easier to claim tax deductions when your home is technically your business.
Can you work without distractions?
How well does your home lend itself to the concept of a home business? What we mean is this; can you work in your house with minimal distractions? You can’t afford for your attention to wander or be dragged this way and that during the day. It must be possible to sit and work, so you’re in the zone and being as productive as can be.
The only way to achieve this is by having a separate home office area. If you’re plonking your laptop down on the kitchen table or trying to sit on the sofa and work, you will always end up distracted by everything else in your home. You need a home office; somewhere quiet where you can focus!
Do you lose out on anything?
We’ve left the biggest consideration to last - what do you lose by running a business from home? Think long and hard about this. The answer could be nothing, but it could also be something. Maybe you miss out on good client relationship management because you don’t have a proper office or meeting room to meet clients in. Perhaps you lose potential leads that could come by if they walked passed your premises.
Some home businesses won’t lose anything while others will. You have to weigh up if the benefits of working from home outweigh the drawbacks of losing out on valuable things.
All things considered, running a business from home can be highly beneficial - but it’s not for everyone. More thought must go into this than you probably expected, so don’t jump the gun just yet. Think carefully about things and then decide if it’s the right approach for you.
