How to Equip Your Home-Based Business for Success

In partnership with NETGEAR

By Rieva Lesonsky

Back in the 1990s, when innovative new technologies enabled the growth of entrepreneurship, many small business owners wanted to hide the fact they were home-based, fearing their clients would not consider them professional operations. Fortunately, that is no longer the case.

According to the new Annual Self-Employment Report from FreshBooks, 40% of currently “traditionally-employed” Americans plan to leave their jobs behind and make the leap into self-employment in the next two years. They’ll be joining a record-setting number of new small business owners. There was a record number of startups in the third quarter of 2020—about 1.4 million businesses began just in those three months.

And you can bet most of those businesses will be home-based. The Small Business Administration (SBA) says in 2019 there were nearly 32 million businesses in the United States, and about half of them are home-based. Since those stats, although the latest we have, don’t include the record number of businesses started during the pandemic, the actual number of home-based businesses is likely higher. Especially since about 69% of all new businesses start in the home.

Launching a home-based business

If you’re one of those new home-based business owners or you’re planning to start a home business soon, there are some issues you need to consider.

Make sure it’s legal to start a business in your home

Home-based businesses are regulated by local (and sometimes outdated or bizarre) zoning laws, so check with your municipality to make sure it’s legal to operate a business out of your home. If you live in a planned community, you also need to look at your CC&R regulations (Covenants, Conditions, and Restrictions) since they may prohibit or limit the type of business you can operate.

If you’re a new business owner, make sure you apply for an Employee Identification Number, even if you don’t intend to hire staff at the moment.

Update your insurance

Chances are your homeowner’s policy will not adequately cover your business. Ask your insurance agent about getting a new policy. Many insurance companies today sell home-based business insurance that offers coverage for the specific issues of operating at home, as well as general liability coverage and a business owner’s policy.

Make sure you have a dedicated workspace

You can try to work at your kitchen or dining room table, but that’s not a good long-term solution. Ideally, you’ll want to carve out a separate space since that will give you the most privacy and the most tax benefits. And whatever furniture you use should be ergonomic. (Again, that eliminates sitting at the kitchen table.)

In the past, home-based startup business owners were warned about handling distractions and time management issues. However, given that many of us have spent the better part of the nearly last two years working at home, most of you have likely figured out how to handle those issues.

Get the right equipment for your home-based business

Technology is the primary reason we can run businesses from our homes just as effectively as from an office. When it comes to equipment for a home-based business, you'll want to start with the basics. A dedicated computer is a must. You should not share the “family computer” or allow your family to use your work computer. That just compromises your data security.

Computers are very affordable today. Get one that’s fast, with a lot of storage and memory. If you prefer a laptop, consider using it with a desktop monitor, or get an adjustable laptop stand. Combined with a wireless keyboard, this will help your posture, prevent back and neck pain, and better position you for video conferencing.

You may think you don’t need a printer or copier, but you do. All-in-one multifunction printers are available at numerous price points and take up less space than separate devices.

Keep your software up-to-date. Some people think it’s too much trouble to update their computers whenever Microsoft or Apple tells them to, but those updates often contain critical security updates. In addition to the basics, you should have virus protection software and an office suite with spreadsheet, word processing, and presentation functions, such as Microsoft 365 or Google Workspace (formerly G Suite). Adobe PDF tools can also be quite helpful.

Also, using software for accounting, accounts payable/accounts receivable, and invoicing will make it easier to run your home-based business. In addition, accessing cloud storage and backup solutions will also simplify (and protect) your home-based operations. And get an external hard drive for each computer you use, even if you have cloud solutions.

Ensure connectivity with right router

Even the most updated hardware and software won’t help you if your internet connection is slow and sluggish. Talk to your internet provider to make sure you’re getting the top speed they offer.

Chances are you’ll need a new wireless router. Don’t skimp here, either. You need a router with a strong signal since it serves all the connected devices in your home, including computers, tablets, phones, smart home devices, printers, TVs, streaming devices, and gaming consoles.

No doubt you’ve heard a lot about digital transformation in the last few years. But, unfortunately, many small businesses were not prepared to adapt as quickly as needed. Instead, many made do with tools they already owned or quickly bought consumer-grade applications and equipment, according to Doug Cheung, senior product line manager, wireless and storage at NETGEAR.

Making connections

But simply "making do" is not good enough to maintain the professional standards a home-based business needs. For instance, you need efficient equipment and robust network connectivity to ensure your video calls or meetings come off without a hitch.

And since there’s a good chance you don’t have IT support, Cheung says you need “technology that is reliable and unobtrusive. In other words, you need business-grade technology.”

Fortunately, Cheung says, “Enterprise-grade functionality is now [available] in a variety of products designed for smaller businesses," including the right network equipment for your home-based business.

What you need depends on many factors, including the type of business you’re running, the size of your house, and the number of connected devices in the home. If you’re looking for basic business-quality WiFi, check out NETGEAR’s Business Essentials WiFi and Orbi Pro WiFi Mesh Systems.

NETGEAR’s Business Essentials are affordable, reliable, and stand-alone wireless access points that deliver bandwidth and performance with quick, fuss-free installation and an intuitive user interface that helps with ongoing management. You also get 90 days of phone and chat support, plus a three-year hardware warranty.

Essentials come with several options, including WiFi 5 or WiFi 6. And since the devices are compact, they’ll easily fit anywhere in your home. Larger homes or ones with many connected devices will benefit from WiFi Mesh Networks that “surround” the space with wireless coverage, eliminating WiFi dead zones.

To understand how this type of technology can help home-based business owners, I talked to NETGEAR’s Cheung, who told me the company designed its Orbi Pro WiFi 5 and WiFi 6 mesh systems to take home office connectivity to a new level. Cheung says, “The WiFi 6 series of Orbi Pro is a router, an Ethernet switch, and a high-performance WiFi access point all in one single device, with enough coverage, speed, and capacity” to satisfy the WiFi needs for home-based businesses. Plus, Cheung adds, “The Orbi Pro WiFi 6 series is designed to maximize available bandwidth by understanding the device type, location, signal strength, and other characteristics to perfect the WiFi connection of all devices on the WiFi network.”

Connecting directly to the internet, Orbi Pro WiFi mesh systems provide coverage for up to 6,000 square feet and the ability to connect up to six extra satellites. With these extra satellites, coverage can be expanded even further, without any loss of performance anywhere in the home.

In many cases, it’s important to separate the work and home WiFi networks. Some Essentials wireless products and all Orbi Pro WiFi mesh systems can create separate networks—or SSIDs—under the same device, allowing an SSID for the business and one for the family or other house inhabitants. You can even create an SSID that supports the numerous connected devices everyone in the house uses. Plus, you get WPA3 authentication and firewall security, which keeps everyone’s data safe and secure.

Help your home-based business compete

Investing in the right technology and equipment for a home-based business, from computers to software to wireless networks, can help level the playing field, giving you access to the same tech and features your larger competitors have.

Starting or running a home-based business is part of the new normal. Business technology now makes it possible to scale your business, hire remote employees, and keep the entire operation home-based.