Once again, we welcome Jim Vogel, co-founder of ElderAction, who focuses on helping ensure seniors thrive throughout their golden years by sharing pertinent resources and information.
Do you run a business out of your home? If so, you’re in good company. A recent study showed that more than half (69 percent) of all businesses in the United States were started in someone’s home. In fact, even Apple got its humble start as a home-based business when Steve Jobs launched it from a garage. (That very same garage is now listed as a historic site.)
For Carrie Wilkerson, founder of The Barefoot Executive, the primary motivation for starting a business was getting out of debt and providing a better life for her children. As a wife and mother, Carrie worried that long hours spent working at a day job would prevent her from watching her children grow up. She decided to start her own home-based business, and now runs multiple six-figure businesses from her own home — and with the love and support of her family.
Although it’s true that not all businesses will see the success that Wilkerson or Jobs have seen, that doesn’t mean your business can’t be successful. You’ve probably heard that most small businesses don’t survive their first year, but new data is actually showing this might not be true. On the contrary, the United States Small Business Administration (SBA) reports that only 20 percent of businesses survive their first year. Nearly half of all businesses survive for five years or more, and one in three businesses will last 10 years or longer.Whatever your reasons for starting a business might be, if you’ve survived this long and your business is growing, congratulations! You’re living every small business owner’s dream. Now that sales are rolling in and the demand for your products and services is increasing, all the freedoms of running your own business from home are at your fingertips.
Although it’s a good problem to have, sometimes business growth means your home office can no longer accommodate the site of your business. If that’s the case for you, then it’s time to find a way to make your home accommodate your business growth so you can reach your full potential. For many small business owners, that means two things: upsizing your home and funding more growth.
Upsizing Your Home
If your home no longer accommodates your business, consider upsizing. There are a few key things that home-based entrepreneurs should look for in a new home.
- Price and expenses. Before moving into a bigger house, make sure you can afford it. It won’t do your business any good if you are stuck in a mortgage that’s beyond your budget. You’ll either get burned out with the hustle or you might have to give up your business ventures all together to focus on making ends meet with a full-time job.
- Office space. Home-based business owners have to consider something that other homeowners don’t: where to work during the day. You’ll need a quiet, distraction-free room that is large enough to accommodate any office supplies, inventory, desks, and other equipment related to your business.
- Location, location, location. Consider how conveniently located your new home will be, including high-speed internet access and distance to clients.
Funding Your Growing Business
Regardless of whether you’re upsizing your home, you’ll also want to consider how you’ll fund your continued business growth. Business credit cards or loans can be a great way to do this. When securing a credit card or loan for your business expenses, it’s important to understand processing fees and rates and how to lower transaction fees.
The things listed above may not be the most fun considerations when running a business or purchasing a new home. However, it is crucial to consider them before you make a big decision. Otherwise, you might get locked into a mortgage for 30 years that isn’t right for you and only ends up hurting your business. Save yourself some trouble and money by researching these things in advance so you can make the right decision for you — and for your business.