Upsizing: Finding the Right House for Your Home-Based Business
Starting a new business is a big decision and often represents a significant financial gamble. However, there are some key factors that help set you up for success, particularly if you need to buy a larger home to accommodate a home-based venture. You’ll not only need to think about your business needs, but you’ll also need to determine a home-purchase budget, explore your local housing market, and hire a real estate agent to help you find your ideal property. Read on for some tips and insights that lay a firm foundation for your home-based business.
Think through location
One of the key factors that determine whether a new business is successful is its physical location and whether it is situated in a space that meets your operational needs. Many people launch a new business at home because it’s less expensive and challenging than purchasing or renting a commercial space with all of the costs, logistical concerns, and tax ramifications that go along with it. However, there are logistical and other considerations that go along with setting up a home business, too.
Assess your business
When you find a property you think might be a good fit for both work and home, make an honest and objective assessment of the property and how it will meet your business’s needs. For example, if yours is a freelance writing or graphic design business, you might need a room you can set aside as a full office—one big enough for a full-sized work desk with a computer, multiple screens, and any other office equipment you might need, like a scanner and printer. Other common home-based businesses include electronics, teaching (such as tutoring or music lessons), IT services, and daycare services.
Laws and restrictions
If this is your first home-business venture, you may be unaware of your preferred community’s zoning laws and legal restrictions against certain kinds of businesses operating out of a residential location. It’s advisable to consult an attorney at The Donaldson Law Firm before you commit to buying in a neighborhood that may not welcome your business.
Also, all businesses need to advertise and market their services. If you’re planning to post signage advertising your services, you may find that many communities prohibit such advertising in order to uphold the residential nature of their neighborhoods.
One legal concern you can tackle is LLC formation. A common choice to protect your personal assets, a registration service like Zen Business keeps this process simple and inexpensive and ensures you meet all the requirements of the state in which you live. Whichever service you choose to help you register your company, be sure to look at customer ratings and reviews so you’ll feel confident their specialists will provide quality service.
If your business requires a store of supplies to be maintained on-site, you’ll need to ensure that there’s sufficient room in the garage, another external storage building, or some other space. For instance, a violin instructor will need studio space with good acoustics and a place where students can wait in comfort.
And don’t overlook parking! If you’re considering a home in a cramped residential neighborhood without a driveway, you could lose customers if they have to fight for a spot to park on the street and walk to your home/business. More than likely you’ll need to order a property survey once you put down an offer, but this can be especially important if you intend to have a driveway added since you’ll want to know the boundary measurements.
Consider other concerns
If you’re upsizing to a new house for business purposes, bear in mind that it won’t be simple just because you’ll be working out of your own home. There is more to consider to set yourself up for success. For example, you should consider carefully the name of your business. As StartupBros explains, your business name should be unique, clear, and not too similar to any of your competition. It might seem like a small aspect, but it speaks volumes about who you are and what you do.
More than half of all U.S. businesses are home-based, according to the Small Business Administration. It’s a way of doing business that’s as old as the United States itself. Use common sense, a well-conceived business plan, and an objective assessment of your business when upsizing to home large enough to accommodate your needs. The Donaldson Law Firm can provide you with guidance pertaining to the legal side of real estate. Contact us at [email protected]