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6 Top Impacts On Home-based Business Success

Written by Posted On Monday, 10 November 2014 18:20

HOME is headquarters for growing numbers of businesses as individuals and families turn to entrepreneurial ventures to subsidize or replace traditional work income. Does this special location get the attention it deserves in business plans?

Small-business success rates have not risen significantly in spite of how accessible technology has made website ownership and wireless commerce. For instance, with all the attention given to tech start ups, 75% of these ventures and 90% of products fail -- 25% of start ups within the first year.

On the list of factors entrepreneurs must weigh carefully are a few significant real estate considerations, even for those intent on an online business. Real estate location and home design are vital influences on the success of a home-based business and on work-life balance. Entrepreneurs and wanna-bes, whether they are real estate buyers or owners, benefit from exploring the 6 TOP IMPACTS ON HOME-BASED BUSINESS SUCCESS:

#1. Location Matters

No surprise that location tops the list, but it may surprise you to discover that location is important even for online ventures for a number of reasons. Key issues like proximity to markets and raw materials can save time and money to make or break a business. Simple considerations like time lost in travel and delivery delays are significant as time-pressured entrepreneurs can't afford to waste hours that could be spent on income-earning, family balance, and valuable, recharging sleep. Location, particularly to transit, is also an important issue when employees, especially part-timers, are vital to the business plan. Proximity to a skilled workforce can be a deciding factor when a home purchase is linked to a business start up. Affordable access to wireless and other services is also an essential variable when home buying.

#2. Privacy & Security Designed In

Open-concept layouts are great for involving everyone in everything, but this may not be the best design when balancing your life and your business. If the business is an intrusion on the rest of the family, you may receive less support from individual members when you need help. On the other hand, clients must be confident their privacy is preserved and their information is secure, so there must be a clear line between office and home. Client details should not be broadcast around the house; your stock of valuable equipment not be common knowledge in the neighborhood. The office is not a playground for the kids when you're not using it. Being able to shut the office door also means you can leave work behind when it's time to rejoin the family.

#3. Distraction-Free Zone

Home offices and workrooms need to be comfortable, organized environments in all seasons. This makes move-in-ready home purchases smart considerations for entrepreneurs. Home renovation and repairs distract from income-earning tasks. Before starting a business in your home, finish renovation projects in your office and line of sight, so you can concentrate on what really matters. Maintain a disciplined approach to your business schedule and you won't get pulled into "you're home anyway" tasks and responsibilities.

#4. Sound Issues

Construction and machinery noise are difficult to work through, so check out the area around a possible purchase. For instance, noise from excavation for transit and high-rise condominiums can travel for blocks and take years to complete. This is particularly important if you do a lot of phone work, podcast interviews, or audio production. Sound-proofing office space may cut down on family noise distractions, too. Silence is an increasingly rare commodity, but an essential one for creativity, concentration, and lowering stress.

#5. Financial Flexibility

Buyers may decide to go for longer amortization periods so mortgage payments are small while the business is establishing itself. Arranging financing can be a challenge for entrepreneurs without traditional employment and income histories. Mortgage brokers, not banks, are assets to the self-employed. Mortgage insurance to cover loss of income due to accident or illness can be a wise back up to prevent mortgage default. Don't consider your home-based business as existing rent-free. Calculate the cost per square foot of the business space. Consult a local small-business accountant to ensure the expense of your workspace is tax deductible and that you take advantage of any available entrepreneur programs.

#6. Ownership Control

Own your workspace and you control overhead and avoid rent hikes that force many businesses into a move. If you want the public to visit your premises, tell your real estate professional your requirements and make sure you buy in an area with applicable business zoning bylaws.

We know that the nature of work, workplaces, and company structures are all changing as technology enables and replaces aspects of work and profitability in every industry. Don't just consider your current response to the 6 Top Impacts. Continually explore which changes could reinforce or undermine economic security, work-life balance, and the empowering workplace that is your home-based business.

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PJ Wade

Futurist and Achievement Strategist PJ WADE is “The Catalyst”—intent on Challenging The Best to Become Even Better. A dynamic speaker and author of 8 books and more than 1800 published articles, PJ concentrates on the knowledge, insight, communication prowess, and special decision-making skills essential for professionals and their clients who are determined to thrive in the 21st-Century vortex of change.

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