More than 50% of Aussie small business are now run from home
Thriday conducted a survey of 200 small business owners and found that 51% of small businesses have chosen the work-from-home route.
A new survey has pinpointed the cost of living, inflation and the enduring impacts of COVID-19 as just some of the factors associated with accelerating the adoption of remote work, with more than half of small and medium businesses now choosing to start and work from home.
Small business accounting platform Thriday conducted a survey of 200 small business owners and found that 51% of small businesses have chosen the work-from-home route to start and operate their business, with 83% stating that they were satisfied with their choice.
Revenue and growth were found to be the key reasons that only 22% of respondents would consider moving to a fixed office or retail location.
“Super acceptable”
Thriday CEO Michael Nuciforo said he thinks that COVID-19 really drove a step change in social norms.
“So whereas in the past people might have felt embarrassed, or it wasn’t professional enough to say ‘I run my business at home’, it’s just super acceptable now,” he said.
“So pre-COVID, I think people would spend unnecessarily on using a co-working space, even if it was a one-person show, and now they feel it’s fine.
“I even remember in the past people would use services to get an ‘office address’ which was literally just a place for mail to go with a CBD address.
“I think the social acceptance of it, new technologies like Zoom, coupled with the rising cost of living and tougher fundraising environment, are just leading to people starting from home and being frugal about how they get their business off the ground.”
Challenges remain
However, Nuciforo said that certain challenges come with running a small business from home.
“It’s very tricky as often it’s more about who you are living with that can pose challenges,” he said.
“Whether that’s your roommate, a partner or children, the adjustment is often bigger for them. The first challenge can literally just be the space and noise at your property — many people don’t have spare rooms or offices that they can use, so they have to make do with using shared spaces.
“As a result, it’s recommended that you invest in getting the right setup and technology so that you can work around these issues. Whether it’s noise cancelling headphones, or identifying a space, however small, that is assigned to be your work space.
“In addition, whilst your home may become your office — for other people living there — it’s still a home and their etiquette can reflect that. It could be leaving things lying around in the background, or making noise.
Nuciforo said to handle this, it’s best to set some ground rules and really talk through your expectations and needs with the people you live with.
“It could be a rule like ‘if the door is closed, stay quiet and don’t come in’, or ‘from 9 am to 1 pm I’m doing sales calls, please leave everything tidy in the morning,’ he said.
“For the business owners themselves, separating personal and work life can be very hard when you are working at home.
Separating personal from professional
“This coupled with the mental shift required to run your business can be hard. So, it’s recommended that business owners really create a weekly plan that encompasses things like going for a walk, or socialising, and these items should be diarised like any other important ‘meeting’.”
The survey also found that 37% of business owners said they had a ‘clear’ understanding of their work-from-home tax obligations and 72% had purchased new equipment or invested in upgrades to their property to support working from home.
Nuciforo said firstly, running a business from home provides unparalleled flexibility, allowing business owners to design schedules that accommodate both work and personal obligations.
“This leads to improved work-life balance and reduced commuting stress, contributing to enhanced overall well-being. Additionally, remote work often leads to increased productivity due to a reduction in distractions and the ability to curate a comfortable homework environment,” he said.
“The technological advancements that facilitate remote work have broken down geographical barriers, enabling businesses to tap into a global talent pool.
“This not only fosters diversity but also opens up opportunities for collaboration and innovation across borders. Cost-effectiveness is another advantage, as remote work can lead to reduced overhead expenses associated with maintaining physical office spaces.
The future of working from home
“Looking ahead, I do believe that there is no turning back and we will witness an even greater increase in small businesses working from home.
“The lessons learned from the COVID-19 pandemic have shown both employers and employees the viability of remote work arrangements. As technology continues to evolve, remote collaboration tools, virtual reality, and augmented reality may further enhance the remote work experience.
“Furthermore, an entrepreneurial career path is more realistic than ever before, so as more people move to being their own boss, then more people will operate their business from home.”
Nuciforo said the rise in women-owned businesses and people caring for children has led to a surge in people exploring their entrepreneurial aspirations from the comfort of their homes.
“I think many women are embracing the flexibility and opportunities afforded to them by running their own business, and again, the ability to work from home can really align to the lifestyle preferences of female business owners,” he said.
“In addition, if you look at the types of industries in which women-owned businesses are prevalent — like creative, e-commerce, beauty-based businesses -= then these lend themselves well to be able to be both formed and in-turn thrive from the comfort of home.”
