There can be several advantages if you're considering running your business from home.
These are the freedom to choose your own hours, your choice of office set up and taking breaks when you want. On the flip side, there are challenges you may need to consider before establishing a business from home.
By taking the time to research and plan your operations, you can create a competitive advantage while also helping secure the future of your business.
You will need to keep in mind that not all businesses are going to work well as home-based businesses.
Motivation, productivity, and willpower are extremely important for those who work at home.
Have a designated office work space
Setting up a home office that is separate to your living areas creates a defined place to work and divides it from your home life.
Having a designated space makes it much easier at tax time to add up your deductions and will make it easier for you to focus.
Make sure that you:
- organise your work space
- have a comfortable chair
- have easy access to your office
- have heating and cooling
- have home and contents insurance.
Have set office hours
Choose to work at certain times of day when you're at your most productive and stick to a schedule. For instance:
- wake up at the same time each day
- go into your daily routine
- start and finish your work at the same time every day.
Setting these times keeps work and personal time separate. Always remember to take breaks.
It's a good idea to get an understanding of the legal requirements you need to be complying with for your business.
Issues to consider include employment, tax, finance and insurance law issues, as well as the criteria for obtaining a licence or approvals from regulatory authorities.
Like all businesses, home-based businesses need to register for business and company names, taxation, and other business licences and permits.
Using your home as a place of business may also mean complying with particular state, territory and local government regulations.
Food business at home
If you would like to operate a food business from home, you will still be required to follow the same rules as though you were opening a café, restaurant or mobile food business.
Health and beauty business at home
If you would like to operate a health or beauty business from home you will still be required to follow the same rules as though you were opening a shop.
A health or beauty business includes activities such as:
- beauty therapy (such as waxing, threading, manicuring, laser, Intense Pulsed Light (IPL), spray tanning, eyelash extensions etc)
Massage businesses may not require to be registered unless skin penetration is including in the activities.
We recommend the use of a separate phone number from your home number, or choose to communicate via your mobile phone only.
It's advisable to check that internet coverage is adequate to provide all-day service and if not, you may need to change your internet service provider (ISP).
The internet is the single best way for a home-based businesses to reach out to prospective customers. Even if you are not the most tech savvy, you will need a website that can function to promote your products and services.