The Pros and Cons of Starting a Home-Based Business
May 2, 2019 (Investorideas.com Newswire) Working from home has become quite a popular option with employees, especially in the past few years. But turning your house into an office comes with pluses and minuses, especially if you are planning on starting a home-based business and become your own boss. Of course, you may have a more flexible schedule and you will be able to see your family more often, but working from home can make it harder to keep a defined line between your professional and personal life. Before deciding whether to start your business in the comfort of your own home or not, it is worth taking a look at the pros and cons.
Advantages of a Home-Based Business
There are a number of benefits that make entrepreneurs more open to the decision of starting their business from home, and here are just a few of them:
- You don't have to commute
Starting a business requires quite some money and time investments and you will soon learn that every penny and every minute matters. By having your office in the comfort of your own residence, you will save a great deal of time and money that would otherwise be spent on transportation. You can forget about busy traffic, crowded public transport and having to put up with difficult weather. Plus, you get to work with your pajamas on, as business attire is no longer required.
- Your schedule can be more flexible
When you work from home, you have the luxury to decide when to begin your working day and when to stop and relax for a while. This allows you to work during your most productive hours and increase the quality of your projects. Maybe you are an early bird and like to work in the mornings, or you prefer to spend a few more hours in the office late at night, when the whole house is asleep. Now you have the option to do that. This does not necessarily mean you will work less, because there will be days when you will definitely be spending more time in your office, rather than in your living room.
- There are fiscal advantages
Familiarize yourself with your state's laws and regulations and verify if you qualify for home office tax deductions. This way, you can deduct some of your house expenses, such as mortgage interests, utility bills and property taxes, against your business income. This can considerably reduce your overall expenses and allow you to put your money where you actually need them.
- Better work/life balance
One of the biggest struggle professionals have to deal with is finding a balance between their professional and personal lives. By working from home, you can save valuable time that can be spent with your family. When your kids are coming home from school, you can choose to spend a few hours with them then and come back to work later in the evening. Being near your family and still commit to your work can set a great example for your children. They can see you working and understand the effort and focus it involves.
- It's a great way to save money
Starting your business straight from home means you can cut off on investment requirements, such as rent expenses, commercial telephone system and office furniture. Instead of spending money on rent each month, maybe you can save up and switch to a much bigger house that will benefit both your professional and personal life. Real estate experts from Kay Grant Group have revealed that one of the main reasons their clients decide to move into a bigger house is because they are either planning on or have already started a home business.
Disadvantages of a Home-Based Business
Like all things in life, where there are benefits, there can also be negatives. A few of them involve:
- Lack of social contact
Not having colleagues around can take a toll on your social life. Of course, being able to wok without distractions can have its benefits and you may be able to do a lot more work that you would normally do in a regular office, but socialization is very much needed from time to time. Try scheduling some face-to-face meetings with clients or collaborators from time to time, so you won't have to spend every working moment alone at home.
- It can be difficult to maintain boundaries
Having your family so close to you can seem like a great idea at first, but make sure they know not to overstep your boundaries. When you are at home all day, it may be looking like you are not working as much as you would do if you were in an office and you may even be prone to do some chores during working hours. Discuss with your family and make it clear that sometimes you will need some distance to focus on your business.
- Your professionality might get questioned
Working in an office gives out a sense of professionalism, which can appeal to clients a bit more than holding your meetings in a coffee shop or in your dining room, but this truly depends on your area of work. If, for example, you are thinking about starting a tutoring business, gathering your students in the living room may not be such a big deal. But if you plan on developing a successful service business, having cars parked all along the road can get your neighbors quite upset.
- Less business exposure
Part of the benefits of having a physical location for your business, with brand name and logo shining above the entrance door is that people can see it and become interested. You won't be having this opportunity at home, so you will have to focus on other ways to promote your business, such as online platforms, flyers or banners.
- You will lack human resources
Being your own boss means you may also need to be your own manager, marketer, employee and sometimes even accountant. This means more work and dedication, to ensure you are fully involved in running the business. Until you start to make enough money to afford outsourcing some of your work, it can become quite overwhelming to do everything by yourself.
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