Risks of working from home

Let's talk now about some of the risks of running your business from home, as well as the requirements to do so in most countries. I'm not just going to refer to coaching businesses, but to all types of ventures in general.

One of the first things to consider when thinking about working from home is to make sure that the activity you are going to carry out does not violate any local zoning laws. Due to the increased popularity of home-based businesses in recent years, more and more local governments are beginning to execute more control over the actions of businesses using this model, to avoid noise pollution and excessive foot traffic in residential areas.

Zoning

In some localities home-based entrepreneurship is completely prohibited. However, in most cities and towns, they are allowed as long as they involve minimal noise pollution and little traffic. That is why professionals such as writers, photographers, accountants, lawyers, architects, teachers and various types of consultants are allowed to run their businesses from home.

Any kind of coach would fall into the category of consultant, so in general, they should be allowed to run their businesses out of their homes. Whereas, other types of businesses, such as bars, restaurants, veterinary hospitals, among others, are not allowed to conduct them from home as they are more likely to have noise pollution and high staff traffic.

There are also houses, lofts or condominiums that can be zoned as both residential and commercial space. In these the owners can run stores, some types of restaurants, hostels, among others and live above or behind them. In this way they would obtain a dual zoning that would make it much easier for them to conduct their business.

As for the restrictions that come with running your business from home in a residential zoned area only, you may have only a few obstacles or a total prohibition to conduct it. This will depend on the country and area where you live and its local laws. That is why you cannot assume that, because your country allows home-based business, your area will have no objections as to how to do it.

Before you even begin, you should take the time to research the particular regulations in your area of residence, through the zoning department. Find out as much as you can about your locality, especially from people who live near your area.

General Restrictions

In addition to zoning restrictions, there are other general restrictions that you may encounter that are common to most countries.

In many localities and cities it is forbidden for any non-resident of the property to work in the property. This means that you will not be able to hire workers based in your own home. You should make sure before you start expanding and hiring employees whether this is allowed in your area.

In some cities, the local government requires clients to make an appointment before coming to your home office. They cannot just show up as if it were a restaurant or a store. They must let you know ahead of time when they will be stopping by and how long they will be staying. Another important aspect to keep in mind if you plan to meet with clients in your home.

In some places the commercial use of the residence is also restricted. In most of these cases you can only use up to a maximum of 25% of the house for commercial purposes. In case you plan to open a studio inside the house or conduct training sessions with several clients, you must first make sure that this can be done.

Also, some locations restrict the number of clients you can receive regardless of whether they have an appointment or not. This would mean, for example, that a maximum of 3 clients could visit you daily and no more than that. It is important to be aware of this so that you can pre-plan appointments with clients or make them out of the house if necessary.

It is also forbidden in many cities to place signs or advertisements outside your home promoting your business. There can be no advertisements and signs like the ones you see outside restaurants, stores, gyms, studios, and other types of businesses in commercial areas. Doing so can put you at risk of being fined and even losing business. You must ensure that all your marketing and promotional efforts are conducted in accordance with local regulations.

Although in many places no specific permit is required to conduct your home-based business, as long as it complies with all regulations within the local zoning code. In others, a special permit is required to use the home as a business location. The good thing about this is that this permit can be obtained quickly and easily by filling out a simple form and paying a tax.

Example

To make it easier and didactic I give you an example that will give you clarity about this process:

• Alex is a health and life coach who has decided to start seeing his clients from his home, which he owns. His initial plan is to start seeing 4 clients a day from Monday to Friday. In addition to this he also plans to offer a fitness class on Tuesdays and a group session on Thursdays, for a total of 5 clients per class, in accordance with his city's regulations.
• The city where Alex lives allows up to 2 clients per day to attend in-house. Exceeding that number requires a specific permit. By obtaining this permit the number of clients he can see daily increases to 10.
• But Alex also wants to celebrate special activities, such as a Christmas party, with all his clients. For this purpose he prefers to rent space in a nearby community center, which is owned by the city and zoned for commercial use. This way Alex can carry out all the activities he intends and respect local regulations.

Business from rented housing

The situation is different when you decide to start your business from a rented residence. In many apartments, condominiums, among others, the regulations are more