Outgrowing Your Home Business? Tips on How to Upsize Your Company
Is your home-based business getting too big for your house? The good news is that’s a great problem to have! The bad news is that upsizing can feel overwhelming, particularly in the era of COVID-19.
Real estate expert Hana Hyams knows that selling and buying can be challenging, so check out these tips for how to handle upsizing your home business with confidence.
Finding your new home
List priorities. Before you can decide on your upsize, you need to figure out exactly what you want in your new place. As Entrepreneur points out, every business is different. If you specialize in custom cakes, you might need a commercial kitchen, a sitting area to talk with clients, and a place to park your delivery van. If you raise herbs for aromatherapy products, you might need a substantial amount of acreage for your plants, a drying shed, a storage area and a place for packaging shipments. Determine your priorities so you can start house hunting with realistic goals.
Evaluate prospects. Once you start shopping for your next place, you’ll be weighing how to make individual properties work for you. For instance, one suggestion is to contemplate whether you will meet clients via the web, personally in your home, or if you plan to meet them in-person elsewhere. As some professionals note, you might not feel safe with clients wandering around your home so a separate entrance is desirable. You also might prefer a less homey and more business-oriented atmosphere, which you could establish in your home office area, fully removed from your kids, spouse and pets. Along those same lines, consider whether you want clients vehicles parking in your driveway, or if it would be better to offer a parking area adjacent to your home office and away from family activity.
Personal preferences. When choosing a property, you should also consider what your personal preferences are for your workspace. One suggestion is to consider traffic flow when looking at homes. For instance, do you work well around your family members or do they distract you? You might need your office or studio far away from your family’s activity areas, or you might prefer the interaction.
You should also consider other preferences, such as proximity to a bathroom, lighting and convenience to your vehicle. Do you stretch your legs on breaks? Do you allow the pooch to join you? Are you a night owl and need to steer clear of the kids’ rooms while you work? Think through your working style and what helps you stay on track, as well as what derails you.
Start with formation. If your small business is turning into a powerhouse and you have yet to file with the state, now is the time, especially if you plan to seek funding. Many small business owners with a small operation opt to form an LLC due to the limited liability, tax advantages and the minimal cost of registering. Nowadays the process has become even more simplified with the ability to file online.
Use tools. Securing a loan to help pay for your move is another key to a successful upsize, and for many small business owners this part of the puzzle can be overwhelming. As NerdWallet points out, money is a big worry and many lenders consider small businesses high risk. To simplify any challenges, consider tapping into some business loan calculators to determine affordability, interest rate and payment for your financial plan. You should also check your credit report and tidy up your credit history if there are issues. A clean report will help with any loan application.
What to look for. Like any other loan, when deciding on lenders you should consider the terms of the loan carefully. One suggestion is to look at the types of lenders available as well, since sometimes alternative lenders or banks might suit your situation best. There are also government-backed loans through the Small Business Administration (SBA). In this case, SBA partners with lenders, meaning the loans are guaranteed with easier access to capital. While funding your venture can be complicated, a little research will go a long way toward simplifying your struggle.
Adapting to Coronavirus
As you begin to outline your plan for a major move, you’re likely wondering how this scenario plays out in the age of COVID. While each region has its own approach, it’s wise to understand how to navigate the new real estate landscape. Virtual home tours and video chats have replaced in-person showings, and many people are closing digitally. When you do have a chance to visit a home in-person, you’ll need to be cautious and wear a mask and avoid touching any common surfaces. Your agent can guide you through any other particulars.
Outgrowing is good!
While upsizing can feel like a daunting proposition, remember it’s a good problem to have. Decide what you need in your next property and research available funding opportunities. You’ll successfully navigate the upsizing process and be settled into your new place in no time.
Are you ready to buy a new home? Turn to expert real estate agent Hana Hyams to find the perfect property!