Top practical considerations to make when setting up a home business

Starting a home business can feel like embarking on a thrilling new adventure.

You’ve retired the cubicle, carved out your own spot of freedom and traded office wear for working in your slippers. Sounds like a dream! But hold up — working from your comfy kitchen table or stylish home office might have its advantages, but it also comes with duties you can’t escape. From financial planning to setting boundaries, it’s a delicate balancing act of making sure you’re covered, both figuratively and literally.

Whether you’re selling handmade jewellery, running a virtual consultancy or creating content, when your home becomes your HQ, it’s a big deal. You’re no longer only a homeowner, you’re now a business owner too, and that means thinking practically about how your personal space serves your professional needs.

So, before you dive headfirst into your dream, let’s break down some of the top things to consider when setting up your home business.

1. Home business insurance: Protecting your hustle

First things first, you’ll need to secure insurance for your home business. All things considered, home business insurance is a vital safety net for all WFH entrepreneurs.

Many assume that their regular home insurance will cover business activities, but spoiler alert, it usually doesn’t. Home insurance policies are designed for personal use, not for protecting your side hustle or full-blown enterprise. This means if something goes wrong — whether it’s a client visiting your home and having an accident or expensive equipment getting damaged — you could be left out of pocket.

Home business insurance addresses that gap, providing coverage that’s more suited to the nature of your operations. For instance, it can cover public liability if clients or delivery people come to your house, and it will also offer product liability if you’re selling goods. Have some pricey equipment like laptops, cameras or tools? It can cover those too.

Plus, if your business involves storing stock at home, business insurance ensures you’re not left footing the bill if something happens, like a fire or theft. It’s worth chatting with an insurance provider to customise a policy that works for your setup. It’s an investment in peace of mind — because nobody needs the added stress of unexpected expenses.

2. Create a designated workspace

Sure, working from your backyard under the sun sounds appealing, but let’s be real: productivity and professionalism require a dedicated workspace.

Setting up a proper home office not only helps you stay focused but also keeps your work and personal life separate. Trust us, it’s a game-changer.

Your workspace doesn’t need to be fancy — a corner of your bedroom, a spare room or even a repurposed closet can do the job. The key is making it functional.

Invest in an ergonomic chair and a sturdy desk to save yourself from backaches later. Good lighting helps too, so set yourself up near a window if possible or grab a desk lamp that brightens up your space.

Don’t be afraid to style it with decor to make it an enjoyable place to sit for a large part of your day. And don’t underestimate the value of storage. If you can keep your paperwork, tools or inventory organised, it will save you from a clutter-induced meltdown.

But perhaps most importantly, a designated workspace helps create boundaries. Once you enter that space, you’re in ‘work mode’. You can clock out mentally when you leave. This separation is essential for avoiding burnout and achieving a healthy work-life balance, which many home business owners struggle with.

3. Sort out your tech and tools

No matter what kind of business you’re running, tech is going to come into play. A reliable internet connection is non-negotiable — no one wants a lagging Zoom call when pitching a client. If your Wi-Fi is more hit-and-miss than reliable, upgrade to a plan with more gigs or buy a WiFi extender to eliminate dead zones.

Next, look at the tools of your trade. This may involve buying a higher-quality laptop, specialist software, or even just a decent printer. Don’t scrimp on what you need to do your job effectively — these are your business necessities, not extras.

Oh, and don’t forget about cyber security. Running a business from home makes you a potential target for cybercrime, so installing antivirus software and using a VPN to protect your data is a smart move.

Lastly, back everything up. Client files, product photos or accounting records — have cloud storage or an external hard drive so you’ll never lose important data. Technology is brilliant… until it isn’t!

4. Register and keep track of finances

When you’re setting up a home business, money matters. It’s not just a matter of making it, it’s a matter of managing it.

To start, you’ll need to register your business. In Australia, this could mean becoming a sole trader or setting up a limited company. Each has its pros and cons, so spend a little time determining what structure aligns with your goals.

Once that’s sorted, open a separate bank account for your business. Combining personal and business finances is just asking to be stressed out, especially once tax season comes around.

Speaking of taxes, stay on top of your expenses. Use an app or spreadsheet to track what you’re spending on equipment, marketing, or supplies — it’ll make claiming deductions much easier. If bookkeeping isn’t your jam, consider hiring an accountant or using accounting software to keep things simple and stress-free.

5. Establish clear boundaries

The advantage of working from home is the flexibility, but it can also be its greatest drawback if you’re not careful. Without setting clear boundaries, it’s all too easy for work to seep into your personal life and leave you feeling burnt out.

Begin by establishing regular working hours and sticking to them. You don’t have to be ‘on’ 24/7 just because you’re at home. Inform family, friends and clients of your schedule so they know when you are available and when you are not.

It’s also important to set physical boundaries. If you have children, roommates or a partner at home with you, signal when you’re in work mode. A simple ‘do not disturb’ sign on your office door can work wonders.

Remember, creating a balance is about protecting your time and energy, so don’t feel guilty for prioritising your boundaries.

6. Market your business like a pro

Lastly, no matter how amazing your product or service is, people need to know it exists.

Marketing doesn’t have to break the bank — there are lots of low-cost ways to spread the word. From Instagram to Facebook to TikTok, these platforms allow you to showcase what makes your business special while drawing in potential customers.

And don’t sleep on making a good website, either. Even if you’re running a small operation, having an online presence adds credibility and makes it easier for people to find you. If designing a website feels intimidating, tools like Shopify or Wix make it beginner-friendly.

Networking is yet another underused weapon. Whether it’s attending local events, joining online communities or simply connecting with others in your industry, building relationships can open doors to new opportunities. The more visible your business, the more likely you are to succeed.

In a nutshell

Starting a home business is exciting, but you don’t want to jump in without planning things first. By tackling these practicalities — insurance, workspace, the tech you use, your finances, boundaries and marketing — you’ll position yourself for lasting success.

Remember, every big venture starts with small, intentional steps. So grab yourself a coffee, tick off that to-do list and get ready to make your dream business into reality!