Starting a home-based business (HBB) can be a dream come true for many. After all, no one likes sitting in a small, cramped office from nine to five, getting stuck in traffic during the commute, or handling poor management on the daily. Working from home is a much more appealing option, and it’s an option available to professionals across industries.
Whether you’re a photographer, a programmer, an interior decorator, or anything in between, you could find fulfillment by starting an HBB. And in many instances, starting a business in your own home is a much better alternative to setting up shop at a remote location.
Take a look at some of the main reasons why an HBB could be your best move.
You Won’t have to Worry about Rent
As a home-based business owner, you’ll undoubtedly have many expenses. You’ll need to invest in the necessary equipment, create an adequate workspace, and maybe even provide a comfortable waiting area for any clients that might visit. However, rent isn’t one of the expenses you’ll need to worry about.
Generally, running a business in your home shouldn’t add much to your typical living expenses.
Furthermore, you could still run some businesses at home even if you’re renting – without increasing your monthly rent. If you work as an independent photographer, for instance, editing photos at home but scheduling photoshoots at different locations, no landlord would mind or use it as an excuse to increase your rent.
You’ll have lower Overhead Expenses
It’s not only rent you’ll save on when starting an HBB. You’ll have lower overhead expenses overall. With no separate office space, you won’t have to worry about additional utilities, maintenance costs, and more.
Moreover, you might enjoy additional benefits from some of the policies you’ve already taken out on your home. If you have home insurance and a home warranty, for instance, you might be able to protect some of your business tools and equipment against damage, theft, or loss.
At the very least, with a home warranty, you’ll receive coverage for servicing, replacing, and repairing some of the major appliances and systems you could use for your home and your HBB.
Keep in mind, however, that there are major differences between home insurance vs home warranty policies, as they offer vastly different types of coverage. It’s always in your best interest to consult your insurance/warranty provider about their precise coverage, then see how that would reflect on your HBB.
You Could Enjoy Some Tax Benefits
Depending on your location and the nature of your business, you might qualify for some tax benefits when starting your HBB. You might be eligible for deductions on your homeowner’s insurance, homeowners association fees, mortgage insurance and interest rates, and even utilities.
Moreover, you can write off some repairs and necessary maintenance costs as business expenses. For instance, if you need to replace a creaky floor in your dedicated home office, you could write it off as a business expense. Even if you need to fix a leaky roof that inadvertently affects your home office, you could write a small part of it off as a business expense.
To enjoy these deductions, tax benefits, and more, you’ll need to meet the strict IRS criteria for home-based businesses.
You can Easily Set your own Schedule
Perhaps the biggest benefit of starting a home-based business is that you’ll have more flexibility than ever. You can easily set your own schedule, take breaks when necessary, and ensure you spend enough quality time with your loved ones.
You won’t have to worry about whether you’d make it to your kid’s soccer game or whether someone will be available to pick your kids up from school. You can step away from your office whenever you need to.
Of course, that doesn’t mean that you can fully relax. You’ll still need to ensure the utmost efficiency while working from home and dedicate yourself to your new business if you want to succeed.
There are some Drawbacks as well
Starting a home-based business undoubtedly comes with countless benefits, but there are some drawbacks you’ll want to keep an eye on as well.
One of the most significant disadvantages is that HBBs are not always allowed in all locations, especially if you have employees. You should consider renting an office space if you want to expand your business.
Additionally, working from home can often feel isolating and could even affect your family life. Many HBB owners find it difficult to create a healthy work-life balance, and like many remote workers, they tend to work longer hours.
Still, even with these drawbacks, becoming an HBB owner might be just the thing for you, as the benefits far outweigh the disadvantages.
Final thoughts
Starting a home-based business isn’t easy, but it’s often well worth it. You’ll have significantly lower expenses, more flexibility, and more freedom to pursue your dream career.
However, before you commit to it, consider the disadvantages as well. Like any other type of business, HBBs come with their unique pros and cons.