Buying a Home for Personal and Business Use - Discover

Summary

According to the U.S. Small Business Administration, over half of U.S. businesses are based in the owner’s house. In fact, many well-known companies began as home-based businesses, including Apple and Ford Motor Company. This is good news if you are considering becoming a home business owner. However, that doesn’t mean it is easy: There are numerous things to consider if you are buying a home with this goal in mind.

Evaluate Your Business

According to the U.S. Small Business Administration, over half of U.S. businesses are based in the owner’s house. In fact, many well-known companies began as home-based businesses, including Apple and Ford Motor Company. This is good news if you are considering becoming a home business owner. However, that doesn’t mean it is easy: There are numerous things to consider if you are buying a home with this goal in mind.

Evaluate Your Business

The first step is to determine what type of business you plan to launch. It’s a good idea to create a business plan that identifies your goals in working from home for the next few years. Many businesses can be successfully run from a home, including but not limited to the following:

Auto mechanic

Electric, plumbing or other repair shop

Babysitting or daycare

Tutoring/teaching specialty classes such as piano, dance, etc.

Selling products

T/technology services

Graphic design

The type of business you choose will determine the needs and requirements for your space.

Identify Potential Restrictions

Before you begin looking at homes in the area where you want to live, find out if the city or county has any zoning laws or restrictions for having a home-based business. You could be required to have a business license. In some locations you may be prohibited from conducting any kind of business from your home. Seeking out a lawyer and / or an accountant may also help you understand the legal and tax benefits of a home office.

Some common restrictions include:

Prohibitions from changing the exterior of your home for business use

Prohibitions from conducting business outside the house

Restricted signage

Restricted parking

Prohibited noise or odors

Prohibited use of some hazardous materials

Choose the Property

Once you have determined that your business is permitted in the neighborhood where you want to buy, your next step is selecting the right home. In addition to the usual list of must-haves and wants, you have a new selection of requirements to consider.

Will you need a dedicated office space or workspace? How much room do you need for supplies and products?

If you have clients or customers coming to the house, where will they go? You may want a separate entrance away from the living area, or even a waiting room. You also need plenty of room for parking.