Image credit: Getty Images
Looking for a home business? Remember these points.
key point
- Running a business from home can mean significant savings on office space.
- If you operate out of home, you may incur additional charges.
- Check out insurance requirements, refurbishments and possible upgrades to your internet.
When I decided to start a small business a few years ago, the decision to make my house my home base was a simple one. Since my business is writing services and I’m the only employee, it doesn’t make sense to spend money to rent space in another building.
If you are starting your own business, you may also be interested in running it from your home. This can be a great way to limit your costs, allowing more of your income to go into your bank account.
However, if you run your business from home, you may incur certain expenses. Here are some things to note.
1. You may need more insurance
Running a business from home may require you to obtain additional homeowners insurance. If you are planning to start a business, contact your insurance company and ask if you need to make changes to your existing policy.
If your job involves sitting at a desk all day using a computer, you probably won’t incur any additional costs. However, if your business involves making furniture in the basement, you may end up having to pay more, as such work may increase the chances of property damage.
2. You may need to refurbish
Your small business will be your livelihood, so you need a dedicated space. To that end, you may need to invest some money in finishing your basement or garage so that you have a workspace that you can call your own.
Also, depending on the nature of your business, you may find that you need some way to store materials and keep yourself organized. Don’t be shocked if you end up having to pay to build yourself a closet or put up a shelf. You may find that you need to buy some filing cabinets to store your paperwork, contracts, and any other important documents related to your business.
3. You may need to update your internet service
If your work is something you’ll be doing online, a slow internet connection can really limit your output — and make it harder for you to achieve your income goals. It pays to upgrade to faster internet service so you can be more productive.
4. You may need to invest in a generator
There are frequent power outages in my area. If I don’t have power, I can’t work. So I decided to invest in a backup generator for my home that starts in the event of a power outage. If you’re running a small business from home full-time, you probably want to do the same.
Of course, a generator can end up being an investment of thousands of dollars. However, if you’re in an area with a lot of power outages, it might be worth it.
There are many benefits to running a business from home (like not having to commute anywhere and having access to a well-stocked kitchen all day). But be prepared to spend a little to make your home a better place to work.