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5 Tips for Successfully Running Your Business from Home

Whether you’re running a home-based business by choice or the COVID-19 pandemic has made working from home mandatory, you may find it’s more challenging than you anticipated. To optimize productivity and operate professionally, you have to establish good work habits and treat your at-home office as seriously as one at a commercial location.

A 5-Point Checklist for Home-based Office Success

✔ Establish a dedicated working space.

Consider transforming a spare room into a space solely used for business purposes. If that’s not possible, a portion of a quiet room that doesn’t get heavy family foot traffic can work well. Either way, equip your home workspace with all of the office equipment and supplies you’ll need to manage your business activities.

✔ Set boundaries for family and friends.

Some people in your family and social circles may not understand (or respect) that you need dedicated time and space to concentrate on your business. You may find that relatives and friends think that because you’re home, you can run errands, meet up for coffee, or chat on the phone whenever they want your undivided attention.

 

Set expectations with your loved ones about:

 

  • Your work hours (i.e., when you will not be available for social activities)
  • The estimated timeline for when you’ll respond to non-emergent requests
  • How to reach you in the event of an emergency or urgent need
  • What qualifies as an emergency or urgent need

If you have small children or other family members who need your care, you may have to go easier on your boundaries. However, having some house rules—even if they’re somewhat lax— will help you maintain focus.

✔ Manage your time.

Generally, working from home offers greater freedom to set your own schedule than working in a traditional office environment. That freedom, however, can create a lapse in productivity if you don’t manage your time well. Consider scheduling dedicated blocks of time on your calendar for specific business tasks. Doing so will help you stay on track with deadlines and help you navigate setting the boundaries we discussed in the point above.

✔ Get proper licensing and insurance for your home business.

States, counties, and local municipalities may have license or permit requirements for operating a business from home. It’s critical to check with the government agencies that preside over your jurisdiction to learn if you must obtain any to run your company legally.  Also, especially if customers will come to your home to pick up products or attend meetings, consider talking with an insurance agent about policies to protect you in the event of accidents or property damage. Many homeowners insurance policies have exclusions for business property and activities. Ask about your options, for example, adding business coverage to your homeowners insurance policy, general liability insurance, or a business owner’s policy. The business activities you perform, your industry, and your location will affect your licensing obligations and the insurance type that will best protect you.

✔ Keep excellent accounting records.

Numbers aren’t every entrepreneur’s cup of tea, but it’s essential to keep careful bookkeeping records. Maintain separation between your business and personal accounts and financial transactions so that it’s clear how much money your business is making and spending. This will help ensure that tax preparation activities go smoothly and that you don’t miss out on using any qualifying home office expenses as business tax deductions.

Start and Grow Your In-Home Business With SCORE’s Help

No matter what challenges you face in starting and running your home-based business, SCORE is here to assist you. Our mentoring services are free—ALWAYS—and will give you expert guidance based on years of experience advising small business owners. Also, explore the many other ways we help entrepreneurs start, grow, and succeed. Contact us today to talk with a mentor!

Perks and Pitfalls: Running a Home-Based Business

 

For many new small business owners, running a business from home is a no-brainer (and often a financial necessity!). With a commute measured in feet rather than miles, you can be ready to work anytime. Without the worry of renting office space, your overhead will be far less than that of traditional business owners. Plus, you’ll get to join the pantheon of other businesses that began in a humble home, such as Apple, Mary Kay, Hershey’s, and Ford.

It’s no wonder more than half of all small businesses in the U.S. are home-based. However, working from home brings its share of challenges. Here are several home office pitfalls that accompany the perks:

  • Prospects might not take you seriously – Some potential clients might view you as less professional or possibly not serious about your business because you don’t have a “real” office.

Suggestion: Maintain the same work ethic and hours that you would if you had an office elsewhere. Treat your in-home business like a bona fide business—because it is!

  • Interruptions from family and friends who don’t quite get it – Especially in the start-up phase, you’ll likely find some of your relatives and friends won’t understand the concept of “working” from home. They’ll think you’re free to meet for coffee or entertain them when they drop by unannounced.

Suggestion: Set expectations from the start. Make sure your friends and family know when you will and won’t be available for socializing.

  • Lack of socialization – Working independently without face-to-face interaction with colleagues can leave you feeling alone and isolated.

Suggestion: Periodically take your work to another location such as a coffee shop or co-working space. When appropriate, consider scheduling video conference calls or in-person meetings with clients and project partners rather than only communicating via phone or email.

  • Endless distractions – Your personal “to do” list at home can be difficult to ignore when tasks are staring you in the face. Tending to them when you should be focused on your business is a sure-fire way to thwart your productivity.

Suggestion: Have a dedicated space for your home office where you can physically shut the door and leave behind your laundry piles and dirty dishes. Schedule time on evenings and weekends (or whenever your out-of-office hours are) for your personal tasks so you’re not tempted to tackle them when you should be working on your business.

  • Inability to get away from your work – On the flip side, you may never feel able to take a break from your business when you work from home. There’s always more to do!

Suggestion: Establish a cut-off time each day for when you will no longer check work emails, business social media accounts, and take calls from clients. Although you may need to bend your rules now and then, you’ll be more likely to give yourself a mental break and your family members the time they deserve if you set  boundaries.

To find out more about the realities of starting and growing a small business, reach out to SCORE Maine to get expert guidance from one of our mentors.

Further Reading and Resources: Starting a Business in Your Home: Weighing the Pros and Cons