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It’s no secret that owning a home-based business comes with a lot of benefits. Home businesses tend to be less expensive to start and manage, more flexible, and more conducive to work-life balance, to name a few perks.
But what happens if your current home will not meet the needs of your business? Well, if you want to launch your company (or keep it growing), then it might be time to get a new home. And you’ll want to follow these critical steps from Beth G Homes as you navigate the home buying process and set up your business:
1. Get a Real Estate Agent
If you determine that you need to purchase a new home that accommodates your business, the entire process can go much more smoothly if you hire an experienced real estate agent. For instance, Beth G Homes can help you research the housing market and pinpoint the ideal area for living and running your business. This will also help you get a feel for the prices and features of the homes in the area. Along with helping you choose a property, your agent can help you through pretty much every part of the process—from getting preapproved for a loan to closing the sale.
2. Consider Your Personal and Business Needs
When purchasing a home, you will want to consider both your business needs and personal needs. Along with providing you the right amount of space and layout to run your business comfortably, you must ensure that you and your family will be able to relax and get the most out of the home. For example, if you find a home that has a perfect room to use as your home office, but the layout doesn’t accommodate your family’s needs, you will need to keep looking until you find a suitable property.
3. Be Cautious of Fixer-Uppers
You’re going to have plenty of things going on as you build your company. Work-life balance is difficult enough as a business owner when all you have to focus on is your business and family. Throw never-ending home maintenance into the mix and it’s going to be nearly impossible to find that balance. For this reason, buying a fixer-upper should be avoided if possible. Find a home that will not demand too much of your time and attention so that you can focus on the things that matter most.
4. Set Up an LLC
If you’re still in the beginning stages and haven’t established your business structure yet, that should be one of the next things you do. Your business structure will determine the taxes you pay, your liability, and many other factors. A lot of entrepreneurs set up an LLC because it protects their assets, yields certain tax benefits, and is more flexible to manage.
5. Plan Your Business Thoroughly
A lot goes into starting a business, and the more tasks that you take care of early in the process, the sooner you will be able to launch and begin growing your company. Make sure you have a business plan that outlines any vital information pertaining to your business, such as your core values, target audience, product or service description, marketing strategies, financial needs, etc. Also, explore your options with funding to determine the best way to pay for the early stages; some of the most popular options include crowdfunding, small business loans or grants, angel investing, and venture capitalism.
Another essential factor to building a business is developing your branding. This includes creating a logo, choosing which fonts and colors will be used for your marketing materials, coming up with a slogan, and other elements. Whenever you’re launching a product or service, you might want to consider using a template so that you don’t miss a step. Then, once you’re ready to go, create a website that will serve as the center of all of your marketing. Then, you’ll be ready to promote your services or products through social media, email, pay-per-click (PPC) advertising, and other channels.
Last but certainly not least, pay close attention to your online payment system so that it’s as easy and convenient as possible for your customers. For instance, integrating a bank loan API allows one to access the latest liabilities data whenever it’s needed – especially for loan and credit card payments, as well as mortgages.
6. Save Up a Solid Down Payment
The more money you can put down towards your home, the better your loan terms will be. And if you have below-average credit, paying a higher down payment can help you secure a loan in the first place. Start saving money now. If you can save up a great down payment, it will mean that you have to borrow less money, allowing you to have a lower monthly payment or pay off your loan in a shorter period of time.
7. Prepare Your Income Records
Home-based business owners (especially freelancers) tend to run into more challenges qualifying for a mortgage than people with traditional jobs. However, if you keep records of your income and can show year-over-year growth, it will put you in an excellent position to secure a good loan. Just make sure that you declare your income accurately and organize your tax documents from the previous two years to show the lender.
8. Meet With Your Banker in Person
Sometimes, it can be hard to prove your income as a home-based business owner. For this reason, try to meet with your banker in person to see how they can help. There are even banks and credit unions that offer programs specifically created to assist business owners in buying primary residences, so schedule a meeting with your banker as soon as possible!
If you want to maximize the benefits of owning a home-based business, you have to ensure that your home will satisfy the needs of both your company and your family. Remember the steps above as you set out for the next chapter in your life, and keep researching other ways that you can set your business and home life up for success. In no time, you’ll be building a thriving company, reaping the fruits of your labor in the comfort of your own home!
Beth G Homes is proud to be a top Keller Williams team in West Seattle, and look forward to serving you in neighborhoods like Alki, Delridge, High Point, Genesee, Belvidere, Westwood and beyond! Reach out today to see how we can help you!