Shopping for a new house is fun, but it's also complex. You want to find the best home for your circumstances, in the best location, and for the best price. And, when you add in your desire to operate a small business out of your home, you may wonder how you can possibly find just the right place. But, the good news is that it's more than possible if you keep in mind a few savvy tips when shopping with your real estate agent.
Here are 4 top home business tips.
Create an Exclusive Space
No matter what type of home business you will be starting, you should generally ensure that your business space is exclusively used for business purposes. IRS tax rules allow you to deduct your home office and storage space as business expenses, but usually only if it's not used for any personal endeavors.
For this reason, avoid planning to compromise with a dual-use business space or shared storage space. Instead, look for an area of the potential house that's sufficiently large to house your office needs and any storage space -- preferably in the same general location to make it easier to run your business.
Don't Blow Your Budget
If you're planning to start a small business, you may need to simplify your finances and leave more wiggle room in your budget while you get things up and running. So, when shopping for homes, be sure you set a budget in advance and don't go over that allotted amount. When planning your home purchase budget, be certain that you can cover not only obvious monthly expenses like the mortgage, but also that you can comfortably pay for things like insurance, taxes, maintenance, irregular repairs, and HOA fees.
Expect Meetings
Depending on the type of business you are starting, you may need to consider how customers, clients, vendors, and potential business partners will view your home office as they arrive. You likely don't want professionals traipsing through the main entertainment spaces of your home, so look for a house with potential to create a separate entrance, a disconnected outbuilding, or an entrance that's cordoned off from the private area of the house. And, be sure you can meet with them in a comfortable, professional, and upbeat home office.
Plan Ahead
You likely plan to keep a home for a while after investing in it, so plan ahead for your business growth too. Even though a small home office space may be enough for now, how will it be in 3, 5, or 10 years? Will you need more space for inventory, a larger office storage area, or room to meet with clients eventually? Thinking ahead now will save frustration and a potential money-losing move later on.
By keeping these few things in mind while looking for your next home, you can enjoy a fantastic house that will also serve as a great base for your entrepreneurial adventure.
