Back then, making a living was a lot more straightforward. A stable job, a steady paycheck, and you were set. These days, the cost of living has skyrocketed, yet wages haven't quite kept up. It's not that our generation is lazy, and it's definitely not because we get nice coffee every once in a while. It's just that times have changed and the playing field is different. To make ends meet, we have to hustle a little harder, work a little smarter, and get a little more creative. So instead of working more hours, why not launch a business from the comfort of your own home?

Yes, your HDB flat can be more than just a place to eat and sleep. From tutoring, freelancing, to running an online store, a home-based business can give you that extra income. But before you go all in, there are a few things to consider. Let's go through them.

Sorry to break the bubble, but you can't just turn your living room into a walk-in caf or bakery. Even though home-based businesses have gotten increasingly popular since the Covid era, HDB maintains strict rules, and for good reasons. Since your flat is within a shared community, it's important that you don't disrupt your neighbours.

There are two main schemes that allow residents to run businesses from home:

• Home-Based Business Scheme

  You don't need HDB's approval to carry out small-scale business activities, as long as you play by the rules, and the rules say:

• Only owners, registered occupants, or tenants (with the owner's consent) can run the business. You can't hire third parties or non-resident employees.
• You can't display advertisements, signages, or posters at the flat.
• No extraneous traffic or adverse impact to the neighbourhood. That means no excessive noise, smoke, smell, litter, dust, or anything that can pose danger to the other residents.
• No heavy equipment or appliances that are not meant for home use
• No large-scale storage or frequent loading and unloading, which means you can't turn your flat into a distribution centre.
• Business activities must comply with regulations from relevant authorities
• No more than three students at a time for private tuition.

Food businesses are quite popular these days, but unlike selling handmade crafts or offering tuition, they come with stricter rules to ensure food safety. While you don't need an SFA licence to operate from home, there are still regulations to follow:

• You can't supply food to hawker stalls, cafs, restaurants, or canteens. Home-based businesses aren't considered licensed food establishments, so selling to them is off-limits.
• You can't run a catering business from home. That means no buffet setups or large-scale packed meal orders.
• You can't sell ready-to-eat raw seafood like sashimi, oysters, or marinated cockles. These require proper cold storage and food handling processes that home kitchens aren't equipped for.
• You can't use ingredients from unapproved sources, like other home-based businesses or food you've brought back from overseas. Everything has to come from licensed suppliers.

Of course, all this isn't to make things difficult but to keep food safety standards high. If you're serious about running a home-based food business, it helps to take food safety courses, follow hygiene guidelines, and stay updated on regulations.

2. Home Office Scheme

This scheme lets HDB homeowners, registered occupants, or tenants run small-scale offices from home, as long as they follow the rules. You can handle the admin side of your business from your flat, but again, your home still needs to be a home first. So everything has to stay within your flat, and you can't create disturbances for your neighbours. Here are the requirements:

• Only the flat owner, registered occupier, or tenant can run a business from the HDB flat, and it must remain a place of residence.
• Business activities must stay within the flat.
• Up to two non-residents (employees, partners, or directors) can be hired.
• The business must not fall under the list of non-permitted businesses.
• Illegal, unlawful, or immoral activities (e.g. gambling, pornography) are strictly prohibited.
• No noise, smoke, odour, waste, or anything that could be a nuisance to neighbours.
• Businesses must not create excessive human or vehicle traffic in the area.
• No soliciting (e.g. flyers, door-to-door sales) or selling physical goods in or around the flat.
• No advertisements, signage, or posters displayed at the flat.
• Business activities must be safe and not pose risks to people or property.
• Electricity and structural load must not exceed normal residential limits.
• No storage or use of dangerous chemicals or hazardous substances.
• Businesses must comply with regulations from other government agencies and obtain necessary licences. Visit GoBusiness Singapore for more info.
• No unauthorised renovations under the H&D Act.
• Fire safety requirements must be met, including an 8A/34B ABC Dry Chemical Powder fire extinguisher and a battery-operated smoke detector. This is because having papers, files, and office equipment poses a slightly higher risk of fire.
• If the applicant is not the flat owner, written consent from the owner is required.
• There's a fee you need to pay for the Home Office application.
• The Home Office approval may be revoked if any rules are breached.

Under the Home Office Scheme, only businesses that are administrative in nature are allowed. This means you can handle paperwork, phone calls, and online services, but no physical customers or clients can visit your flat. This means some businesses allowed under the Home-Based Business Scheme won't work for the Home Office Scheme.

Permitted businesses include:

• Accountancy and consultancy services
• IT, architectural, and design services
• Insurance and financial planning
• Real estate agencies
• Trading offices (excluding car trading)

Non-permitted businesses include:

• Beauty, hairdressing, and massage services
• Tuition centres or music schools
• Food catering or restaurants
• Retail shops, including pet shops
• Repair services (household appliances, electrical, etc.)
• Any business that requires physical interaction, storage of goods, or large-scale operations

Now that we've got the serious stuff out of the way, let's talk about how you can set up your flat to accommodate both living and business purposes. The first and foremost is to have a dedicated work zone, even if it's just a small corner with a desk and chair. It will help you separate work from home life so you can be more productive. If you tutor or zoom a lot, having that quiet space with a clean background can make a big difference.

If you're selling products, you need to maximise storage. If your dining table is buried under packaging materials and your flat is starting to look like a warehouse, you might as well rent one!

But if you're not ready to commit to that, you can make use of stackable bins, wall shelves, or even under-bed storage to keep things organised at home. And if your business involves parcel pickups, make sure to set a designated collection spot to keep things running smoothly.

Rental Income vs. Business Needs

If you're using your spare room for work or storage, that's one less room you can rent out. This could mean missing out on rental income. But on the flip side, a well-maintained home optimised for remote work can still pay off in the long run.

Since remote and hybrid work is becoming more popular, features like office space, good lighting, and a functional layout can make your flat more attractive on the resale market. A well thought out work-from-home setup could boost your property's value and appeal to the right buyers.

Commercial and Industrial Space vs. Home Sweet Home

Every business has to start somewhere, whether it's at home or in a commercial space. But depending on your business needs, you might prefer one over the other. In general, people choose to start their business at home to save costs.

But of course, paying extra come with perks. Having a dedicated space gives your business a stable, professional setup. So, it's easier to establish a presence, attract customers, and run operations smoothly.

For retail businesses, a prime location means more visibility and foot traffic. Plus, you can engage with customers directly and build stronger relationships. On top of that, having dedicated areas for operations and inventory keeps things organized, which is a game-changer for businesses handling large quantities of products. Overall, it's more accommodating for large-scale operations, and it's easier to scale up as demand grows.

All in all, a home-based setup is ideal for small online businesses in sectors such as e-commerce, consulting, or freelancing since it's more affordable and flexible. However, if you need a lot of space and storage or meet clients regularly, then you might be better off renting or even buying a commercial or industrial property.

To sum up:

And what happens when your business outgrows your flat?

Of course you'll be happy that things are taking off, but now you need more space, perhaps even hire some staff. At this stage, it's probably a good time to scale up and consider moving into a commercial or industrial space, especially if your revenue can comfortably cover rental costs or monthly instalments.

If not, you might want to rethink your current setup or upgrade to a bigger home. The latter can be tricky if moving wasn't in your plans just yet. You'd have to find the right place, secure financing, and relocate. Don't forget that you need to complete your minimum occupation period (MOP) before you can sell. So it's important to plan your property timeline carefully and anticipate when an upgrade might make sense. In the meantime, you can consider these alternative solutions:

• Rent a co-working space for meetings to free up home space
• If storage is the issue, look into external storage units instead of upgrading immediately

In today's economy, having multiple income streams is more important than ever. If your flat can help you make the extra income, why not maximise its potential? Whether you're starting small or planning to scale up, your home should work for both your life and your business. And if you're wondering whether it's time to upgrade or optimise your space, you can always chat with us to weigh your options. So, is your home just a place to live or an opportunity waiting to grow? It all depends on you.

Thinking of scaling up? Check out these retail spaces, office spaces, industrial spaces, shophouses, and warehouses.

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