8 Considerations for Starting a Home-Based Business

8 Considerations for Starting a Home-Based Business

The following contribution is from another author.

If you are considering starting a new business, you have many decisions to make. One of the earliest choices you will have to make is whether to operate your new venture from your home.

Home-based companies are an affordable and convenient alternative to office rentals. However, this type of office may not be the right option for you. Here are eight things to consider before starting a home business.

1. Technology Needs

If you are going to manage a business from your home, you need to ensure that your home is equipped with the right technology to facilitate your success, including internet service, computers, printers, and other essential technology. Depending on the type of enterprise you start, you might need specialty equipment.

Some of your technology needs will be easy to address, such as your phone answering service. Others may present a bigger challenge. For example, if you live in an area with poor internet service, you may need to consider locating your office somewhere with reliable access to the internet.

2. Business Type

The type of business you start will impact whether you can base the company out of your home. If you want to run an online service business, you will have fewer potential issues than if you start a company that requires you to meet with clients or store large amounts of inventory.

You should carefully consider the requirements of your business and whether you can meet those requirements from your house.

3. Zoning Regulations

Individual cities and counties will have varying rules for home-based businesses. You will want to investigate your local zoning ordinances to determine if you can legally run your new company from your home. Ignoring zoning regulations can lead to expensive fines.

4. Neighborhood Characteristics

Not all neighborhoods will be a good fit for all businesses. You will need to evaluate factors such as noise level and security. If you live in a noisy area, you may find that you have trouble concentrating or taking phone calls. If your operations require you to run loud equipment, you could receive complaints from your neighbors. One solution is to outsource your calls. You can contact a London Virtual Office service, or wherever you are based, to help manage these tasks. This way, you don’t have to worry about a noisy neighborhood, and you can keep your work running smoothly.

5. Space Requirements

To run a successful home business, you will need a space that works for your individual needs. You will most likely require a dedicated room or area for your work. For many people, a corner with a desk may be sufficient. However, your space requirements will vary based on the type of business you are pursuing. For example, if you need to bring clients to your home, you will probably want a separate room. If you plan on stocking inventory, you will need adequate storage.

6. Home Life

The realities of your home life could present some challenges for your enterprise. You should consider your family or roommates’ schedules, habits, and lifestyles to determine if your home life will mesh well with your business. Family can interrupt the workday, and noise can impede concentration.

Some people find that running a business from home makes it difficult to find a healthy work-life balance. There are some things you can do to help create this balance, such as using a phone answering service to take calls after work hours and setting expectations with your family. However, if you struggle with this aspect of operating a business out of your home, you may want to consider other alternatives.

7. Work Style

Everyone has a different work style, and your’s may or may not be well-suited to working from home. People who are self-starters, work well in isolation, and stick to a tight schedule will often find they can successfully run a home-based business. However, if you need structure in your workday or more socialization, you may struggle to perform in a home office.

8. Insurance Coverage

All businesses need insurance, and you will need to find a policy that takes into account the unique risks and challenges of a home office. You will also need to consult with your homeowners’ insurance provider to ensure that a business will not affect your current coverage.

As you begin the exciting process of starting a new enterprise, make sure to carefully evaluate your needs before choosing the location of your office. The right venue is essential to your future success.

And once your business has taken off, you may want to consider investing in yourself by learning new skills.  A pmp (Project Management Professional) course for example can help you gain skills that will make you better manage your business’s projects.

Author

Eric is the creator of At Home in the Future and has been a passionate fan of the future since he was seven. He's a web developer by trade, and serves as the Director of Communication and Technology for a large church in Nashville, TN (where he and his family are building a high tech home in the woods).

1 comment

  • Thank you for sharing this! If you plan to hire people who will need to interact with each other, consider a virtual office instead of renting or buying physical office. With a virtual office, you can get all the features of physical office space at a much lower price. A perfect solution for startups!

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