Setting Your Home-Based Business Up for Success

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Setting Your Home-Based Business Up for Success

The U.S. Small Business Administration's Office of Advocacy performed a study that revealed that home-based businesses in the United States bring in $102 billion in revenue every year. With many workers facing uncertain economic futures, it is not surprising that more people are turning to entrepreneurship. If you are considering starting a home-based business, it is important to set yourself up for success, so read on for tips and information from Kelly Cowan Designs to help you do just that.

Choose the Right Business for You

There is no one perfect business idea for everyone. Avoid the trap of choosing a business that seems like the hot new thing. First, by the time you get your business running, it may not be all that hot anymore. Second, you need to focus on your strengths. Choose something that you know a lot about or are willing to learn a lot about.

Review all of the jobs you have held in your career and pick out areas of expertise you have gained that could be turned into a business idea. Once you have settled on an idea, test it out to make sure it is a good fit before you invest a lot of time and money into it.

Consider Forming an LLC

Home-based businesses are not as strictly regulated as giant corporations, but AllBusiness notes there are still legal hurdles to jump. One of these hurdles is protecting your personal assets from business liabilities. Forming a California LLC protects your personal assets, provides you with some tax benefits, reduces paperwork, and is a more flexible structure than a sole proprietorship. The rules vary from state to state, but you can take the work out of it and avoid expensive legal fees by utilizing a formation service.

Choose the Right Space for Your Needs

Whether you plan to remodel or add on to your existing home or purchase a new one, it is important to consider the needs of your business. You need a specific space in your home to conduct your company’s activities. Keep in mind that the current median value for homes in Sonoma County is $629K, which is no small price tag. A more cost-effective option is to remodel or build an addition to your current property with the expert team at Kelly Cowan Designs. This way, you’ll create a customized dedicated space to run your business, boost your home’s value, and avoid the hassle of moving, not to mention save hundreds of thousands of dollars. To get started on your project, contact the Kelly Cowan Design team online or call (415) 577-8958!

Once you’ve remodeled or built your workspace, you’ll need to fill it with everything you require to operate, such as office supplies, a computer, a desk, and a phone system. Make sure you have sufficient storage space for products, equipment, and supplies and that if customers will be coming to your home, they have a dedicated area to meet you away from your living space.

Tips for Buying a New Home

If your existing home does not have enough space to accommodate your home business and remodeling or building an addition isn’t an option, purchasing a new home may be your best option. Review the various steps involved with home buying, which starts with your finances and setting a practical budget. Before you start searching, it is a good idea to get pre-approved for a home loan. This saves you the stress and potentially wasted time of shopping for homes that you can not get financing for.

With your budget and pre-approval in hand, begin looking for a home with the features you need and a price you can afford. Consider searching for real estate online. This can help you narrow down your search without having to drive all over town looking at properties. If you are not already working with a real estate agent, consider contacting one. As RISMedia’s Housecall explains, a real estate agent can help you find properties that match your needs and may know about properties that will be going on the market soon.

Running a home-based business can be a rewarding experience, but you need to make sure you and your home are prepared to handle the challenges. By choosing a business and a space that is well-suited to your goals and lifestyle, you will be setting yourself up for success from the start.