Credit: Tina Martin
Working from home is a goal many of us have, but what if your dream includes working from home as your own boss? A home-based business is the way to achieve this goal, and it’s really not as hard to set up as you might think. It does take some thought and planning, though, so here’s how to get started.
Can Your Home Hold Your Dream?
Depending on the type of home-based business you’re thinking about starting, you might need some extra space that your current home simply doesn’t provide. Perhaps you need extra rooms to comply with home daycare regulations, a larger, open room for your photography studio, or a larger kitchen with more counter space and ovens to accommodate your catering or baking business.
Family Handyman points out that you may be able to build on without spending a bundle, but sometimes the logistics and budget just don’t pan out. Even the smallest business may eventually need to expand, so keep this in mind as you prepare to launch.
If you think a larger home is the ticket either now or down the road, there’s also much to consider. First, you’ll need to find an agent familiar with the areas where you want to move. Next, you’ll need to shop around for lenders. Depending on your situation, you may be in a position to refinance your current home to access equity you can put toward a down payment on another home, but you’ll need to read the fine print and know what you're getting into. Look to refi faq lists to brush up on specifics. You’ll also want to survey the market and get a feel for average listing price and how competitive it is. For example, in the Fort Lauderdale area, the market isn’t very competitive, and the average sale price over the last month was $329K.
It’s Okay to Start Small
All this talk of expanding might have you feeling a little overwhelmed, but there’s nothing wrong with starting with what you have and growing later. You can use spare rooms for an office, as well as incorporate an office into your living room by tucking it into a nook, corner, or behind the couch. Just make sure you have space for the home office basics such as a desk, chair, printer, and storage, in addition to any items unique to your business.
If you need more room to create, design, stretch out, or simply remove yourself from any and all distractions, Cook Portable Warehouses suggests converting an outdoor shed into a home office or studio. You’ll want to add in some insulation to keep things warm in the winter, as well as have a professional electrician run wiring so you can have internet, a printer, lights, fans, and any other electronics you might need.
Make Sure It’s Legal
A business run out of your home might not seem like a huge deal, but as BizFilings says, there are some legal pieces you need to look into before you open for business. The most common issue you may run into is zoning regulations that prohibit a business in a residential neighborhood or area. You may even find that there are restrictions on how much of your home can be used for business, as well as an employee limit. If you’re in violation, you may be able to apply for a variance.
To get info on zoning laws, visit or call your local city hall. They’ll also be able to notify you of any licenses or permits required such as a general business license, professional license, health/safety permit, sign permit, and/or a sales tax license.
Become Friends With Your Local Accountant
The taxes don’t stop when you become self-employed. In fact, it opens up a whole new world. To ensure you’re filing the right paperwork, keeping up with all the necessary tax documents, and complying with tax laws, it’s important that you work with a trusted, local accountant of your choosing. They’ll be able to help you take advantage of tax deductions for your home office, supplies, car mileage, and travel expenses too.
Starting your own home-based business is an empowering journey. It’s also a constant learning process filled with both success and bumps in the road. Getting started is the key to unlocking that journey, and a well-planned space to launch it is your first step.