Starting a home-based business comes with challenges and rewards. You can enjoy the freedom of being your own boss and running things your way, but you’ll also face new roadblocks you might not see coming. Read these tips for running a business out of your home office and you’ll feel more prepared to run a company.
With a little time and practice, these strategies and ideas will become second nature. Your business will thrive and you’ll feel on top of the world, all because you researched how to transform your career.
1. Track Overhead Costs
Once you get past the excitement of launching your business and making your first sale, you should start tracking your overhead costs. These are your initial investments before you ever upgrade your computer or marketing materials. They’ll also become recurring, so log monthly operating expenses like:
- Rent
- Insurance
- Utilities
As your company grows, you’ll add office supply orders and employee wages to this list as well. It simplifies things when it’s time to file taxes and hand out W9s.
2. Create a Positive Home Office Environment
Everyone deserves to work in a positive environment, especially if that’s your home. Make sure your home office is designed with comfortable furniture and smart storage solutions. When moving into this space, taking the time to create a firm foundation will help you work successfully from home.
Keep your files, cords and knick-knacks organized with shelving, and invest in a sturdy, comfortable chair and roomy desk.Then, fill your workspace with things you enjoy. Potted plants, posters and trinkets personalize your space and remind you why you’re working so hard when things get tough.
3. Keep Every Receipt
Although you don’t have to provide documentation for purchases under $75, the IRS will still require cross-receipt tracking for future audits. Losing these receipts is one of the most common bookkeeping mistakes business owners make, so get ahead of the curve. Save all of your receipts in both physical and digital form to avoid losing track of expenses.
4. Establish a Work Culture
When your business needs extra help, new employees will look to your established work culture to understand what you expect from your team. It guides every business decision and determines whom you hire.
Consider what kind of work culture you want for yourself and your employees. Write down values you’ll prioritize, like dedication and honesty. It’s a simple tip for running a business out of your home office that sets up a foundation for success.
5. Set Firm Business Hours
It’s much easier to set firm work hours when you commute to an office and log your hours. When you can work after dinner or for hours before breakfast, things get more complicated.
Resist the urge to devote all of your time to your new business. You’ll only run yourself into the ground with stress. Shutting down your computer at the same time every evening separates your work and personal life so you can recharge.
6. Try Self-Care Habits
Starting any kind of business is stressful. You’ll experience a rollercoaster of emotions until your company develops and becomes your new normal. Self-care habits give you a healthy outlet for your anxiety while working through the first phase of opening your company.
You’ll only find a routine that works if you try out different habits and evaluate how they make you feel. Exercising regularly or journaling at night could provide the stress relief you need to thrive during challenging times in your career.
7. Wear Professional Clothes
Procrastination hits hard when you work from home, but it doesn’t have to. Jumpstart your morning by getting into the right mindset with the help of a professional wardrobe. Whether you have video conferences scheduled or plan to just tackle your inbox, dressing in work attire establishes a morning routine that wakes up your brain and prepares you for your day.
8. Read Applicable Tax Laws
Filing your taxes changes when you own a home-based company. Get ahead of tax season by reading about applicable laws that might change your deductions and quarterly installments. You might be able to file for deductions on qualified business income and overhead expenses.
You’ll also need to determine your workspace’s square footage to figure out how much you can deduct from your rent or mortgage payments.
Running a Business Out of Your Home Office
These tips for running a business out of your home office will make your experience easier. Once you prepare for tax season, establish your company’s work culture and figure out how to take care of your mental health, you’ll experience greater business success.
We hope you found this blog post Tips for Running a Business Out of Your Home Office useful. Be sure to check out our post How to Work from Home with Maximum Benefit: Expert Tips for more great tips!
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