Many entrepreneurs are using their homes to run their small businesses. Multiple benefits come from a home-run business, ranging from reduced expenses to tax deduction advantages to reduced stress, but there are also unique disadvantages. If you are a small business owner looking to enjoy the benefits and reduce the challenges of running a small business from home, we have created a top tips guide to help you make your home-run small business a success! When you need a small business accountant for your home-run small business, SureBooks is your best partnership.
Top Tips for Running a Small Business From Home:
Many home-run small business owners will rave about the benefits of operating their business from their home office. You may have small business owner friends talking about their cost and time-savings, their increased flexibility to manage their business and still fetch their children from school, and see their big smiles over their tax deductions. If your registered small business is compatible with being run from your home, we highly recommend taking this exciting leap so that you can also enjoy all the advantages of a home-based business.
We also understand that running a business from home comes with its challenges. Procrastination, distractions from your home life, and lack of social interaction are some of the common disadvantages to having a home-run small business. We have highlighted six top tips to run your small business from home successfully so that you can enjoy the benefits and reduce your risks of disadvantages.
1) Create Your Business Space:
Whether your small business is artisanal bread baking, freelance photography, psychologist sessions, or tax consultations, you are going to need a specialised space within your home to operate your small business. Business space in your home is an allocated space that allows for your to perform your work productively and without interruptions. The space needs to be comfortable, ergonomic, have access to reliable internet, and be equipped to suit the requirements to operate your small business successfully.
For tax deduction purposes, your business space in your home needs to be a separate space that is purely allocated to your business operations. This means a closed-off room that has your office supplies, your product storage, or your space for interacting with your clients. Your business space can be a converted loft, a spare bedroom, or even your garage, as long as you feel happy in the allocated workspace and can prove to SARS that this is a specific space for business purposes.
Another benefit to having an allocated space for your small business is that you can reduce your risk of distractions from your home life. If you have a separate workspace, you will not have to worry about your spouse needing the dining room table to set up for dinner whilst you are in the middle of a meeting or that you will be distracted by your pile of dishes sitting in your kitchen in the middle of a report. You can also tell your family members that you are unavailable for interactions when you are in your workspace to reduce unnecessary distractions.
2) Set a Work Schedule:
Running your small business from home means that you are the boss without anyone around you to keep you accountable for when you operate your business. You can fit your work around your school collection times, your Pilates classes, or your weekly catch-up with friends. This flexibility is a major benefit that many home-based small business owners enjoy.
This flexibility can also come with a cost to small businesses that are run from home. When you have no work schedule, it is easier to be distracted or succumb to procrastination. If your distractions or procrastination is preventing clients or suppliers from getting a hold of you easily or causing them to wait unnecessarily for work-related responses, this can then impact the reputability and reliability of your small business.
On the opposite side of the spectrum, having your small business at home can begin to affect your home life. Every small business owner is usually focused on business growth, and this can then take over your much-needed family time and prevent you from keeping on top of your household responsibilities. If you have no limit placed on the time you spend working on your small business, you will start to miss out on important moments with your family or create conflict in your relationships.
A work schedule is the best way to help you avoid procrastination and generate a work-life balance when running your small business from home. You need to decide how many hours you need to spend working on your business every day to ensure you are operating optimally and allowing for future business growth. Once you have these hours outlined, while accounting for daily home activities, you then need to stick to these operating hours. This will ensure clients can trust your small business and allow you to have a productive and balanced work routine.
3) Hire Like-minded Employees:
If your small business has been operating for a while and you have experienced financial growth, you can consider taking on one or a few employees. Having employees will lessen your workload, increase your flexibility, and allow for increased growth for your small business. A selection of employees will also be a form of social interaction and reduce the loneliness and stress of handling every aspect of your running your small business on your own.
Hiring the wrong employees can cause workplace conflict and make going to work uncomfortable, and this can become exacerbated when your small business office is in your home. You, therefore, need to be tactical about the employees you will be hiring. Not only do you need to consider the potential employee’s qualifications and experience, but you also need to ensure that they will be a great fit for your home-based workspace.
A home-run small business has a different dynamic to a conventional office, and thus you need to make sure that the person you hire is suited to working in this type of business space. You may have a casual approach to work clothing and allow your employees to take their breaks in your garden, or you may require that your employees come dressed to impress and take scheduled rests away from your home during the day. Everything regarding your expectations around your employees needs to be fully highlighted so that the right employee joins your home-run small business.
4) Market Your Business:
Whether your small business is located in an office block or your spare bedroom, every small business needs to establish itself as a brand, reach new clients, and build its reputation. A major contributor to this is through marketing your home-run small business correctly. We have highlighted a few free or low-cost marketing methods that you can do to increase your client base and reach of your home-run small business.
- Social media marketing.
- Create a website.
- Have a blog.
- Advertise online.
- Monthly newsletters.
- Network with related clients.
- Host an event.
Marketing your small business requires full-time attention that many small business owners do not have the time or energy for. We recommend outsourcing your small business marketing to an independent marketing agency that specialises in small businesses and your industry. Alternatively, you can hire an in-house marketer to manage your home-run small business marketing. Whatever you decide, ensure that your small business marketing receives dedicated and passionate effort.
5) Get Home Business Insurance:
An important aspect to consider when running your small business from home is your business insurance. You will have either renters or homeowners insurance, but often this will not cover any of your home business. If there is a fire or robbery in your home and your business equipment is damaged or stolen, your insurance will not cover any of these expenses. Alternatively, if a client visits your home business and is injured, your insurance will not cover any of their medical expenses.
Home business insurance is essential for protecting you and your small business if a problem occurs. If you have clients visiting you, have supplies, products, or equipment for your business at your home, have employees, or would be severely affected if operations had to cease for a few days, then you need home business insurance. Discuss home business insurance with your insurance provider to have an insurance policy supplied that is suitable to your unique needs.
6) Have a Small Business Accountant:
Small business owners running their business from home have a lot on their plate. From networking with clients to managing supplies or production to getting work done on time, your daily to-do list will be extensive as a small business owner. If you have employees, you will also need to manage their work productivity levels to ensure deadlines are being met and that your level of quality is being upheld.
Managing your business finances is time-consuming and potentially stressful if you are not confident with finances and accounting, which is why small business owners often neglect their business’s finance management. Keeping on top of your business finances is critical, and if not correctly managed, you risk dire consequences for your home-run small business. An outsourced small business accountant will alleviate your stresses regarding your business finances.
A small business accountant will provide your home-run small business with the time, dedication, and financial managerial efficiency it requires to operate successfully. By selecting a small business accountant that is an expert at accounting for small businesses within your industry, you will also benefit from professional advice that will be advantageous to the future success of your business. A small business accountant is an advantageous partnership to your home-run small business as you can focus on your daily tasks while still feeling confident that your small business accounts are under control.
SureBooks, Your Small Business Accountant:
SureBooks is a small business accountant that is reliable, accredited, and fully qualified to handle your home-run small business accounting. We offer both accounting and payroll services to ensure every aspect of your small business finances is covered with our small business accountant service. SureBooks will be your affordable partnership that will ensure efficient financial management for your business.
Running a small business from home can be profitable, exciting, and an opportunity for personal growth, and SureBooks is your small business accountant to assist you in achieving the highest potential with your small business. Our expert accountants within our small business accountant team will provide you with advice and guidance that is specialised to your small business needs within your industry. We strive to ensure that your bottom line grows legally and ethically with our small business accountant services.
Run your small business from home successfully with our top tips and SureBooks small business accountant services.