Are you a business owner struggling to find enough space to accommodate your growing company? If so, you’re not alone. Many entrepreneurs start their businesses in their homes, 30.2 million to be exact, as reported by Fundera. But as the business grows, they quickly outgrow their living space. While this can be cause for concern, the solution is simple – upsizing your home to create more room for the business! In this article by Amelia Island Realtor, we’ll explore the steps entrepreneurs should take to find a bigger home for their businesses.
- Hire an Experience Realtor
As an entrepreneur, you’re bound to have your plate full of business-related projects. Adding home search into the mix will significantly increase the burden on your shoulders and reduce the amount of time you can dedicate to the business. The better option is to hire an experienced realtor to do the legwork of finding homes, scheduling meetings, and negotiating with sellers for you. Additionally, a realtor can guide you through the process of securing a mortgage and the best financial practices when buying a bigger home.
Your part in the home buying process will be to create a list of requirements and provide budget restrictions, based on which the realtor can start shortlisting properties.
- Prioritize a Home Office
Given that the whole point of moving into a large home is to make space for the business, having a home office needs to be your number one priority. Along with being a quiet place to work, a home office will serve as a safe space for storing business-related documents, organizing a meeting with clients, and helping to develop a healthy work-life balance.
- Remember to Purchase Home Warranty
While home insurance protects against unforeseen circumstances such as damage to property from theft, natural disasters, etc., a home warranty covers the costs of repairing or replacing household appliances and critical systems (plumbing, HVAC, etc.) As a home-based business owner, you’re bound to purchase equipment such as a laptop, printer, scanner, and other appliances. Having a home warranty will protect you from paying exorbitant costs in case of damage or theft of this equipment.
There are various warranty providers on the market, each with various nuances. Hence, before investing money into a home warranty, take ample time to research providers and choose the one that best fits your needs.
- Establish an LLC
Another great way to keep costs in check when moving into a bigger home is to establish a Limited Liability Company (LLC). LLCs are legal entities that provide limited liability protection for their owners. This means that if your business is sued, you will not be personally liable for any damages.
Another benefit of forming an LLC is that it can help you save on taxes. LLCs are taxed as pass-through entities, which means that the business’s income is “passed through” to the owners and taxed at their individual tax rates. This is different from C corporations, which are taxed at the corporate tax rate of 21%, as reported by the Tax Foundation.
- Consider Going Back to School
Moving to a larger home will equal higher maintenance costs in addition to monthly mortgage payments. Hence, your business will need to generate more income than before to cover these costs. Going back to school can be one of the best ways to improve business performance. For instance, by earning a business bachelor’s degree you’ll sharpen your skills in accounting, time management, communications, and more. This inevitably will have a positive impact on streamlining business operations, reducing costs, and resulting in higher profits.
Additionally, by choosing to pursue the degree online, you’ll be able to maintain a good work-life balance while spending significantly less compared to a traditional degree.
For entrepreneurs ready to take their businesses to the next level, upsizing is the perfect solution! When it comes to costs, establishing an LLC and purchasing a home warranty will help to keep those in check. Additionally, pursuing an additional degree is always an option for learning new skills, applying them to the business, and earning more profits.