Do’s and Don’ts for Home-based Business Owners

Home-based business owners were almost unheard of prior to the internet boom as most business leaders saw the unavoidable need of being physically present to guarantee that work was getting done as it should. However, with the evolution of technology, online businesses have increased and home-based business owners are now a growing audience with unique needs, challenges, and preferences.

Although the internet has facilitated the task of running a company from the comfort of your home office, there are also certain challenges that home-based owners must tackle appropriately to guarantee that they can run things smoothly. For example, finding ways to finance their business via a small business loan to grow their company or hiring freelancers to support their demand.

If you have a business from home, or you are considering this opportunity, in the following article, you’ll find tips on what to do and what not to do with your project.

3 Do’s for Home-Based Business Owners

1.   Establish clear limits between work and off-work time

It is a bit difficult to set the boundaries between work and other areas of your life when your office is just a few steps away from your bedroom or living room.

In this regard, experts recommend that home-based business owners set a clear limit to the hours they spend on work stuff and the hours they spend doing something else – including family time and some alone time.

2.   Make your home office a place you enjoy working at

Managing a business from home is more enjoyable and effective if the environment is intentionally designed for the owner to carry on with his day-to-day tasks.

Having the right environment to manage your business from home can help you increase your productivity dramatically. So, if you don’t have the means to adapt your house, you can ask for a small business loan to furnish your home office with the equipment and furniture you needs to make and take calls, lay back and think, or spend long hours typing or working on stuff on the computer. And if the operation takes place in the kitchen or the garage, the money can be destined to equip with appliances, instruments, and the necessary tools.

3.   Recognize the need for scaling up

A business that is constantly growing in sales will eventually need to grow physically as well. This probably will mean renting some office space, a warehouse, a manufacturing facility, a commercial store, or just an occasional place to meet with the team.

It can also mean hiring staff to push some of your pending projects forward. If all of those cases, a small business loan can be of assistance to help you finance those expenses if your organic cash flow can’t support them at the moment.

2 Don’ts for Home-Based Business Owners

1.   Don’t underestimate the advantage of having a lower overhead

Home-based businesses tend to be much more flexible when it comes to their operating costs as most of the expenses are usually variable –they fluctuate with the level of sales– while there are less fixed expenses that traditional businesses have to deal with like rent, utilities, and maintenance.

This flexibility is an asset as home-based business owners can quickly redefine their organizational and operating structures to remain profitable despite a sudden downturn in sales.

2.   Don’t commingle

Just because you operate from home doesn’t mean you can mix your personal finances and the business ones. Commingling these assets could complicate matters when it’s time to file taxes and may even have legal repercussions.

Keep your company’s money and personal funds separate. Open a business bank account, get a business credit card, and ask a professional accountant for help if you need to.

Bottom Line

These do’s and don’ts are not an extensive list but they do tackle some of the most common issues that home-based business owners find along the way. If you relate to some of these situations, feel free to leave a comment, like, or share this article.