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For plenty of people in the workforce, working from home is the ultimate perk.
After all, working from home offers low-overhead, short commutes, tax incentives and flexibility. That’s why more than 50 percent of small business owners run their business from where they live, according to the Small Business Administration.
But when you’re running your own business from home, a dress code of shorts can’t be the only system you have in place to help your business be successful.
If you’re feeling overwhelmed about where to get started in launching your home business, we’ve got you covered.
22 Tips for Running a Business From Home
1. Create a workspace for yourself
Some people really do work fine from their couch, but if you’re running a business from your home long-term, create a space for your work.
Depending on your working style, budget and the square footage of your home, creating a workspace for yourself can range from a small filing cabinet in the corner to a Zen-home office.
Whether you’re creating a corner for yourself or an entire room, clear any clutter or distractions from your space to help you focus and be productive.
You’ll also want to decorate your space in a way that inspires you and keeps you feeling happy. Think motivational quotes and either bright or soothing colors.
2. Protect your business.
You may be thinking: but I have homeowner’s insurance, why do I need business insurance?
Depending on the nature of your claim, some homeowner’s insurance policies may deny you because the claim should be filed under a business claim, rather than a homeowner’s claim, according to The Washington Post.
Talking to an insurance agent will help you understand how your unique business should be covered. The agent will likely ask you questions, such as if you have clients to your home for meetings or if your business operates at any third-party venues, such as an event space.
Business insurance is a good investment to protect yourself financially. And often, you can get it a nominal fee. Lower than you might expect actually. I have a one million dollar policy that costs me about $50.00 a month.
3. Organize important documents before you have to search for them
As a business owner, you’ll need all your important files easily available, such as your business insurance and your Employer Identification (EID) number.
Create a system, such as color-coding, to help you find documents you’ll need easily and efficiently. You don’t want to waste time to search for documents all across your house the next time you need to know your EID number.
4. Arrange for childcare
Working from home full-time can mean there is more time to spend with your children – that commute time is now much shorter! However, while you’re physically doing your work from home, find childcare.
If your kids are hungry and need you to cook or begging you to let them go outside, your productivity will plummet. Find the balance that works best for your family. This may mean an in-home nanny or finding a nearby daycare to enroll your children in while you’re growing your business.
5. Invest in the right technology
The right technology can help you seamlessly run your business. Investing in services such as Ring Central or other voice-mailing services will help give your business a professional feel.
For example, Ring Central will forward your calls, provide screen sharing options for meetings, as well as, faxing services.
If you’re afraid you will procrastinate running a business from home, you can also utilize software such as Asana, which helps if you happen to have freelancers or contractors. This way you can collaboratively work on a project, set deadlines and more.
6. Create business hours
If you worked in an office or at a store, your business would have typical working hours. It’s important to set these for yourself even while working from home to avoid burnout and work taking up every waking hour.
Set hours upfront that make sense for your life, family and business schedule.
After you’ve set these hours, be sure to communicate these to employees, clients, friends and family. Of course, there may be an emergency that requires you to work outside of those hours, but setting them upfront will give you a stronger chance of adhering to it.
7. Get a separate mailing address
It’s a good idea to have a distinct business address, separate from your home address. Consider using a service where you can get a real street address such as 1500 Main Street rather than P.O. Box 1000.
If clients can tell you run your business from home, there can be a negative connotation and a risk that clients might not take you professionally.
Of course, this really depends on your business. Often it’s perfectly acceptable.
8. Join a professional group
Even when working in an office, after-work networking events were still a must to meet influencers in your industry and build meaningful relationships with colleagues.
However, working from home is inherently isolating. There’s no coworker next to you to bounce ideas off of and there’s no one to grab a drink with after a long, frustrating day.
Joining a local professional group will help you find other entrepreneurs that work from home, who you can share ideas with.
These events can also be a vertical for you to spread what your business is doing by word of mouth. Look for these groups on sites such as Meetup or LinkedIn.
9. Invest in marketing
Since there’s no storefront for potential customers to drive by and see your logo or brand, it’s important to create a marketing strategy to let people know your business is out there. Depending on your business, this could be online, billboards, or in more localized publications. Having a great website is not enough to market your business.
10. Go out to Lunch
Now that your business is up and running, be sure to take a mental break and take yourself out to lunch.
At first, this may seem like an extra expense, but it will help your productivity and happiness to have a change of scenery and a nice meal.
Going out to lunch can also be a great way to meet new people, network and tell people about your business.
11. Separate business accounts
To protect yourself financially, you’ll need to set up a separate business checking account and apply for a business credit card.
If you’re an LLC or a sole proprietorship, separating finances will protect your personal assets, help with filing your taxes and ensure you have good bookkeeping. The bank account will allow you to transfer money and the credit card can help you with the start-up costs of running a business.
12. Use small business resources
The Small Business Administration and SCORE offer free business counseling and affordable workshops to help hone your entrepreneur skills.
SCORE even offers a mentorship program to help you have a coach during the startup phase of your business.
SCORE’s workshops range from running a business on a small budget to writing your business plan. The Small Business Administration offers guides on everything from taxes to preparing for emergencies.
13. Know your finances
It’s best to learn and understand business tax laws as you’re starting your home business. This way, you’ll be sure to save appropriately and plan ahead of time.
This also includes keeping track of your home businesses exemptions. For example, everything from expenses to cleaning your home office to home business internet expenses can be deducted from your taxes. This will also require you to keep good records of your expenses.
14. Understand business requirements
Usually, you may need a general business permit to operate. Additionally, depending on the type of your business, you may need additional permits.
Also, beware that some towns have zoning laws about where businesses can operate from. You can usually download business permits online from your local city hall, or you can go in person to speak with a clerk and pick up the forms.
15. Build a strong team
Maybe you are your businesses’ only employee or perhaps you have remote workers.
If you’re solo, you still have a team and may not realize it. Hire good accountants to help you with laws and taxes.
If you’re outsourcing any services, be sure to read client reviews and read contracts thoroughly to protect yourself.
If you’re hiring a team, make sure your employees are strong in their respective areas and bring different perspectives to the table. During the interview, ask if they’re comfortable working from home or from your home. Then, ask how they help themselves stay on task and hit deadlines.
Once they’re on the team, make time for video chats and if possible, some in-person time, to help build a strong team bond.
16. Keep your overhead costs low
Usually, the cost of your office lease would be considered an overhead cost to running your business. One of the best things about working from a place you already own or rent, is you don’t have to pay a second time for office space.
A home office typically allows you to deduct a portion of your rent or mortgage. It’s generally based on the dedicated space that is used for your home business.
Now that you’ve kept office space costs low, be sure you’re not inflating this cost with other things you don’t need right away. Pricy technology, expensive furniture or other services may secretly raise your monthly costs.
17. Schedule meetings at the right time
At certain times of the day, your house is going to be louder than others. For example, even if you have childcare, perhaps your kids come home from school at 3 p.m. and tend to get a little rowdy. Or maybe the mailman comes at noon and your dog is always barking.
If this is the case, then don’t schedule a conference call for 3 p.m. Evaluating your schedule and noisy times upfront will help save you stress later on.
18. Prepare for an inspection
Depending on the type of business you run, you might be required to have an inspection done. Businesses that involve food, that have outside clients or employees enter or handle hazardous materials are all subject to be inspected.
19. Put everything in writing
Working from home might feel like you can be casual about things – and that’s true for your dress code – but you need to protect yourself and your relationships by putting everything in writing.
Any contracts you have, job offers to employees or interns, or someone wants to invest in your business – write it down so everyone is in agreement about the terms.
Even if you work from home, you still need to protect yourself. Often this is overlooked.
20. Buy in Bulk
If you find yourself constantly purchasing the same items multiple times, whether it be materials or key items for your product, consider buying in bulk. You’ll save yourself a lot of money and will eliminate the need for you to continue to spend time on re-ordering the item frequently. However, you will need to find a place to store it in your home!
21. Set boundaries for friends and family
You work from home. The key word there is “work.”
Just because you are home doesn’t mean you can interrupt your day to pick a friend up from the airport or talk on the phone to your mother for an hour at 2 p.m.
Be sure your friends and family know you’re serious about your business and what your boundaries are. This could also apply to your physical office space. If you want your family to keep out, set that rule upfront.
22. Listen to your customers
Knowing what your customers want is the key to success. You’ll learn what they want by listening to them.
If your business does not involve customers or clients coming to your home, create a way to learn. This can range from encouraging comments on your social media pages, doing a behind-the-scenes Facebook or Instagram Live where people can join in and ask questions, or sending out a brief survey for customers to take and reward them with something such as a 10 percent discount off their next purchase.
If you follow the above advice, running a business from home can be awesome with many perks, and these tips can help you keep on the path to success.
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