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Looking for a home business? Keep these things in mind.
key points
- Running a business from home can mean saving a lot of money on office space.
- There may be other expenses if you work outside your home.
- Pay attention to insurance requirements, renewals, and possibly upgrading your Internet.
When I decided to start a small business a few years ago, the decision to use my home as my home base was an easy call. Since my business is writing services, and I am the only employee, there is no point in spending money to rent space in another building.
If you are starting your own business, you may also be interested in running it out of your home. And it can be a great way to limit your costs, allowing more of your income to flow into your bank account.
But if you run a business from home then you may have to incur some expenses. Here are some to keep on your radar.
1. You May Need More Insurance
You may need to obtain additional homeowners insurance coverage to run a business from home. If you are starting a business that you plan to run out of your home, contact your insurance company and ask if you will need to make changes to your existing policy.
If your job involves sitting at a desk using a computer all day, it may not cost you any extra. But if your business involves making furniture in your basement, you may have to pay more, as such work can increase the potential for property damage.
2. You may need to upgrade
Your small business will be your livelihood, so you need a dedicated space for it. To that end, you may need to put some money into 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 ways to store content and keep yourself organized. Don’t be surprised if you’re willing to spend money building a closet or shelving yourself. And you may find that you need to buy some filing cabinets to hold your paperwork, contracts, and any other necessary documents related to your business.
3. You may need to update your Internet service
If your work is something you’re doing online, a slow Internet connection can really limit your output — and make it harder to meet your income goals. It can pay to upgrade to faster Internet service so that you are able to be more productive.
4. You Might Have to Invest in a Generator
There is frequent power outage in my area. And if I don’t have power, I can’t work. As such, I decided to invest in a standby generator for my home that remains operational during power outages. And if you’re running a small business from home on a full-time basis, you’ll want to do the same.
Of course, a generator can be a multi-thousand dollar investment. But if power goes down a lot in your area, it might be worth it.
There are many benefits to running a business from home (such as no need to commute anywhere and having access to the kitchen throughout the day). But be prepared to spend a little money to make your home a more suitable place to work.