Marcus Home

Why Running a Home Is Like Running a Business

Record keeping, tracking income and expenses, and employee satisfaction are just a few skills you can transfer from work to your home.

by Marcus Lifestyle Team

Some people might roll their eyes when I say that running your home is a lot like running a business. They might say, “Of course, the business guy makes everything all about business!” Hear me out. As you may know, I always rely on the three Ps of business – people, process, and product. But when doing home renovations or even just managing day-to-day processes around the house, I encourage people to follow the three Ps of design. That’s practical, purposeful, and profitable. This approach has helped me make tough decisions, prioritize where to spend money, and keep things running smoothly, inside the home and at work. I think they’ll help you manage your home, too.

List of the three P’s of Design.
List of the three P’s of Design.

Keep a Business Mindset When Running Your Home

A business and a home both have money coming in and going out. You’re making investments, improving the way it functions, and eventually trying to make top dollar in sales. Smart home renovations can help boost your sale price, but they’re not a fix-all. I find it useful to think about efficiencies that can be made while running a home, taking time to figure out where I lose time in my daily routine. A purposeful and efficient home is a practical and profitable home, so I make sure to spend some time analyzing where it can improve.

One example of how running a home is like a business that I like to give is that you have employees in both places. For instance, whoever balances the checkbook at the end of the month is the CFO of the family. Think about the people you bring into your home to work on it. Contractors, roofers, plumbers, and electricians are a necessary part of keeping your household running smoothly, and their labor costs money. A business needs to make payroll, and a family CFO doing home renovations needs to budget for their workers.

Home Management Tip:
  1. Make sure to spend some time out of your home with your family. Every worker needs a break from the office.
Image of an elderly couple working on their house.

Another example is research. In business, customer and employee research is one of the most important things an entrepreneur can do. While running a home, especially before home renovations, researching what your family wants and needs can save massive headaches and lead to a more profitable result.

Before you start designing a new kitchen, buying furniture, or painting a wall, do research and write down your family’s needs analysis.

Your Home is Actually Your Most Important Business

I think if you asked almost any successful person what the most important thing in their life was, they wouldn’t say money or power. They’d say family. That’s certainly true for me. That’s why I stress the importance of collaboration and compromise when it comes to running a home or doing home renovations. At the end of the day, your house needs to work for everyone living in it, and there needs to be leadership. Just like in business, someone needs to take the lead. But be sure to get buy-in from your team. In this case, your family.

Home Management Tip:
  1. Allow every member of your family to have a business meeting to discuss improvements or changes to routine. Bring snacks.

It may feel as if you spend all of your time in the office, but most people are in their homes for the majority of the day. If you start to think about the hard work you put into your company, it makes sense to bring that effort and some of the same problem-solving skills you’ve built into running a home. Home renovations are a great way to refresh how you feel about your house, but they aren’t the only solution. Reframing the way your household runs can sometimes have more of an impact than a new bathroom vanity.

Image of a family laughing on the couch

It’s All About People

In business, I stress the importance of people. There are managers, bosses, employees, contractors, and many more. To keep them happy in their jobs, business owners can raise pay, design a happy work/life balance, or perform numerous other techniques to improve employee morale. Running a home is similar. Your kids, partner, and parents have to be happy in their home to thrive. As I’ve said before, home renovations are among the top five stressful things we can put our family through. Communication, managing expectations, and compromise are the keys to getting through the process with a happier family, not a damaged one.

Home Management Tip:
  1. Every company needs a mission statement. Sit down with your family to write one of your own. What do you stand for?

I’ve found that accountability goes a long way toward eliminating chaos in the workplace. It can do the same thing for running a home or during home renovations. If you hire a contractor, you expect them to reach specific goals and do good work. If your household is running like a business, your family should have accountability, too. Goal charts and daily chores are a great way to instill responsibility in kids and keep parents happy. If someone has a problem with their role, suggest that they schedule a meeting to discuss changes!

Image of a child with their parent, washing dishes.

Be a Good Home Manager

People will work for recognition and opportunity more than they’ll work for anything else. Running a home with the same mindset can do wonders for a household. Give your family a chance to participate in tasks and chores. Listen to how they would improve the process. If something isn’t working for your kids, ask them to figure out what you can change. Help guide them along in the process. Ultimately, nothing in the world is as important for a person’s wellbeing as a happy family. A smoothly operating home process will get you there faster, and we can look for the lessons we have learned in business to help.