The concept of home business has changed over the years. Whether you are freelancing or selling handmade goods, or running an e-commerce store from your living room, the idea of turning your home into a business hub is more popular, and more practical than ever.
According to Justin Welsh, a home-based business is any venture where the primary office is located in the owner’s residence. From solopreneurs to side-hustlers, more and more professionals are tapping into the freedom and flexibility that the business of home offers.
What Qualifies as a Home Based Business?
A home-based business can take many forms. Some common examples include:
1. Freelance design or writing
2. Handmade product sales (e.g., Etsy or Shopify shops)
3. Virtual assistance or online consulting
4. Pet sitting or daycare
5. Beauty and wellness services
Most business-related tasks can be simply done even by sitting at home whereas some involve visiting vendors or meeting clients in-person. Regardless of the scale, these businesses are fully operational and ready to make money even from a residential space. Isn’t that amazing?
The U.S. Army deserves extra credit here as they provide special training to the military families about how they can run a successful home-based business. You can find resources and guidelines on this through the Army MWR’s Home-Based Business program.
Do I Need Insurance for My Home Business?
Absolutely, as this is something that most of the home business owners overlook. One of the most important aspects of running a home based business is home business insurance.
Many home business owners believe that their home insurance also covers the business activities, but that is not always true. Take it as that if some client falls or slips in your home office or if your inventory catches fire, in such cases, your insurance may not cover these losses.
That is where home-based business insurance becomes important and non-negotiable. It typically offers:
· Liability coverage for clients and deliveries
· Property coverage for business equipment or inventory
· Coverage for loss of income due to unexpected disruptions
· Cyber liability protection if you collect customer data online
Final Thoughts
Running a home based business can be rewarding, flexible, and profitable, but it also comes with unique responsibilities. Beyond setting up a workspace and managing clients, you need to ensure your venture is protected with the right home business insurance and complies with local regulations.
Explore useful resources like Justin Welsh’s glossary on home-based businesses and the Army MWR HBB program to make sure your foundation is solid, legally and financially.
Whether you’re just starting or already scaling, a home-based business is more than just working from the couch; it’s building a brand from the ground up, right where you live.
