7 Benefits & Essential Strategies for successfully running your Home-Based Business

Running a business from home offers numerous benefits, especially in terms of cost savings and convenience, according to Bradd Bendall, BetterBond’s Head of Sales. He notes that research indicates about 40% of start-up business owners prefer working from home due to lower overhead costs compared to renting commercial spaces.

The COVID-19 pandemic underscored the feasibility of home-based work, revealing it as a cost-effective and practical business model. Discovery Insure estimates that working from home could save individuals up to R2,900 per month in travel costs alone. Additionally, home-based work provides a better work-life balance, offering more time for family and personal pursuits.

Bendall emphasises that starting a home-based business requires 7 Essential Strategies with benefits:

1. Legal Compliance: Ensure your property complies with local zoning regulations, which vary between municipalities. While some small businesses and home offices may not require special permissions, larger operations or those involving structural changes will need municipal approval. If you live in a residential estate or complex, permission from the Homeowners’ Association is also necessary.

2. Space Requirements: Consider whether your home has adequate space to accommodate your business needs, such as an office, consulting room, or treatment area. Structural changes might require council approval, and additional storage may be necessary, especially for businesses handling confidential documents.

3. Parking: Adequate parking is essential, especially if your business involves client visits. Ensure your operations won’t disrupt your neighbours or increase street traffic, and be mindful of noise levels.

4. Tax Benefits: The South African Revenue Service allows deductions for certain home office expenses if a part of your home is designated for trade. However, using your home for business may have Capital Gains Tax implications when you sell, and recent changes mean you can no longer claim interest on your bond.

5. Connectivity: Reliable internet and a stable power supply are crucial for home-based businesses. Ensure you have the necessary infrastructure in place.

6. Utility Optimisation: Working from home increases utility usage. Investing in solar solutions and adopting energy-saving habits can reduce costs and minimize disruptions during load shedding.

7. Insurance: Ensure that items used for your home office are properly insured as part of your home insurance policy. Additionally, explore business insurance options to cover liabilities, workers’ compensation, and cyber risks.

Running a business from home can be both financially and personally rewarding, provided all legal and practical considerations are met to ensure a comfortable and safe working environment.

‍