The advantages of running a home-based business

**linkB2B** · 22-09-11, 07:08 PM

A home-based business will save you from other expenses that would otherwise be costly. A home-based business will automatically cut your rent, electricity, parking, gas, and other overhead charges. Note: Once your business has started earning a steady profit, you might want to donate a share to cover a part of the household expenses.
1. More Work Time, Less Commute Time
According to a recent Gallup poll, North Americans spend an average of almost 50 minutes a day commuting to and from their offices. One of the best benefits of working in a home office is that commuting involves no more than a few steps to the spare room or the basement. That leaves more time for revenue-producing activities.
2. The Ability to Scale Up or Scale Down Quickly
When you rent or own office space, the size of your business is fixed to the size of the space. In the event where downsizing makes sense, you may not be able to do so quickly if you are signed to a long-term lease. Working from your home allows you to hire more people or fewer people, or simply work longer or shorter hours to right-size your business operations.
3. Deduction of Home Costs on Income Taxes
The tax benefits of operating a home office can be lucrative. If your situation qualifies, you can deduct a portion of your home's expenses, such as mortgage interest, property taxes, utilities and repairs and maintenance, against your business income. To qualify, your home office must be your principal place of business and you can only deduct the proportionate amounts of the total expense which are directly related to your business. Although you cannot create a loss with your home office expenses, you can carry them forward to future tax years if you do not have enough business income to use them up in the current year. (Running your own business has both personal and financial perks.
4. Flexibility of Working Hours
Being able to work at night or first thing in the morning is a great boon for those entrepreneurs who are juggling children or other obligations. Mobile phones, faxes and email allow you to interact with your customers and suppliers at any time of the day or night. You can more easily accommodate customers in different time zones and kids' school schedules.
5. Reduction in Overhead Costs
Working from a home-based office keeps your overhead costs low as you are not renting office space or phones or paying for office utilities. The zero commute also saves money on gas and wear and tear on your car. The reduction in fixed costs allows you to be more flexible in your pricing decisions than competitors who must cover those types of costs. You can choose to either give more favorable quotes or keep the same pricing as your competition and have a healthier bottom line.
6. Allows You to Test Out Business Ideas
More than 50 per cent of all new businesses fail. If you have had to put money out for office space and other fixed costs right off the bat, a start-up failure can be costly. Working from a home office allows you to test out a new business without a lot of overhead. This way, you can determine its viability before investing a lot of money.
The Bottom Line
Starting a business from your home allows you many freedoms and flexibilities to grow your business at your own pace. It also saves money on many fronts, which helps during the often-lean start up years. (Your work environment can make or break your career as an entrepreneur
Time and again, home-based businesses have proven to be capable of producing a full-time income (and even an above average income). However, just like other businesses, you must have an excellent understanding of your market, calculate your risk, and be prepared in case of an unfortunate loss of your investment

**AlbionColt** · 28-12-11, 11:47 PM

According to my opinion when choosing your new home based venture, make sure you do not base your decision solely on the potential income. Instead, choose ideas that you would enjoy doing, or have a strong interest in learning and doing, because you will be spending a lot of time doing them. Of course, income potential should be considered, but definitely should not be the sole reason for choosing a type of home business.

**Rigmonkey** · 29-12-11, 12:24 AM

My advice here is not to be fooled into thinking that home-based business ventures are an easy ride. They're actually incredibly hard work and I've never had so little free time in my life since I began writing from home. There are also many, many distractions (such as children, partners, friends who finish work early who think you can just drop everything to go out for a drink with them and dogs that spend six hours at your feet waiting for you to finish up so they can go walkies!) so you have to be incredibly self-absorbant and, at times, just a little bit rude!

On the positive side, there's a sense of freedom that comes from working under your own terms and that's what I love about my job. I also get to meet great people who I would never encounter in a typical place of employment at such a personal level. An easy ride it isn't, but it is incredibly fulfilling.

**Dunworking** · 01-01-12, 06:59 PM

My work led me to work from home many times over the years and the biggest problem I ever faced was procrastination. I agree that the distractions are very much there, Rigmonkey. Golf and fishing can be so much more appealing than slaving over a keyboard (or typewriter, in the old days) when the weather is on your side and deadlines don't appear to be as close as they actually are.

As with any other job, working from home means you have to plan out a working schedule and stick with it no matter what. Have a start time, a scheduled break, a lunch hour and a finishing time. If you have to work over, remember that additional hours are for the benefit of your own business and shouldn' be seen as an inconvenience.