4 Tips for Setting Up Your Home Based Business
Whether it’s because you’re fed up with working out of an office where you have to punch a time clock, or you’ve waited for years to start your own small business, working from home is something that many people would like to do. While 2020 saw more people than ever working from their home office, that was out of necessity, most of them went back to the office when businesses started opening up again.
If you, however, decided that you wanted to keep working from home, and are in the midst of starting your own home-based business, keep on reading for a few tips to help you get started.
1. Find Your Space
The biggest mistake that many first-time home-based business owners make is thinking that they’ll be able to get work done from any location in their home. The last thing you want to do is blur the lines between your business and your personal life.
Instead, you need to find a space that is just yours and is reserved for working. That works to your advantage because you can also use that space later as a tax write-off. The couch and the bed do not count as effective workspace. It needs to be a space used solely for work.
2. Set Up Your Home Office
Once you’ve found that space in your home, it’s time to start setting up that home office. Start by applying for a small loan through a reputable loan agency, so that you can outfit your office all at once. Once you have that loan, use it to purchase a desk, a comfortable chair, office supplies, a computer, and anything else you need to start your home-based business and make it a success.
Don’t forget to clean, declutter, and decorate your office as well, since you’re going to be spending a lot of time there. You want your home office to reflect your style and personality, and still make it easy for you to be productive and get things done.
3. Set a Business Budget
From recurring business expenses such as paying employees, your phone and internet service, and marketing to get the word out there about your products and services, there’s a lot to consider when you run a business from home. That’s why after you have your office set up, you want to sit down at that new desk and set a business budget that you can live with.
Just as you don’t blur your personal and business life by working from bed, you also don’t blur them by combining your business and household budget. Instead, you need to keep your business checking account and your personal checking accounts separate, and never dive into one to fund the other. Keeping your business and personal budgets separate is the best way to achieve success with both.
4. Don’t Forget Tax Season
As the owner of a home-based business, you’ll have many deductions available to you when it comes to filing taxes. However, you have to file your own taxes, as you won’t have an employer that sends out a W-2 at the end of the year. There are many software programs out there that can help you with your taxes, though your best bet is to hire an accountant who will help you keep on top of things. The last thing you want is to have the IRS come knocking at your door when the new year begins.
These are just a few tips you should know when starting a home-based business. Follow them, and you’ll have a long, and profitable career right out of your own home.