The Benefits Of Starting A Home Based Business

Working From Home

Starting a home based business can be an easy way to break into a market. In recent years, home based businesses have been on the rise. There are many reasons as to why this increase has occurred. Below are a few of the benefits of starting a home based business, which could have at least in part caused the increase.

The first benefit is being able to start working instantly. If you work from home, your commuting costs are zero. It requires very little effort to get to work; you simply need to walk into your office. On average, we spend about 50 minutes each day traveling to and from work, according to a Gallup poll. Cutting your time down to zero can give you extra time to do anything that your heart desires. Many individuals use that time to work, which can lead to a higher income.

Working from home also gives you the ability to make major changes to your business quickly. For example, if you need to downsize your business for any reason, working from home can make it much less of a hassle. If you had a store front business, downsizing could potentially be difficult. If you are in a long lease, you might have to wait until your lease is over to move to a smaller space. If you are losing money every month because of this issue, it could mean the closing of your business. If you have a home based business you could hire less employees and work longer or shorter hours, depending on the situation.

Another benefit to having a home based business is being able to get a deduction on some of your home costs on your income taxes. After determining your eligibility, you can take a look at your mortgage interest, utilities, home repair costs and property taxes to see what deductions you can receive. A proportional amount of these can be considered an expense for your business. Unfortunately you cannot create a loss, but you can carry over the amount for the next year.

In addition to zero commuting costs, downsizing and taxes, another benefit is setting your own hours. This is the most common reason individuals go into business for themselves. If you need a day off, you can take it. For many, knowing that you have that freedom, makes the risks of starting a business seem small.

In comparison to opening a store front, a home based business is a much cheaper endeavor. You don’t have the high overhead costs that can make running a small business difficult. Because your costs of operation are so small, you can sell your items or services for cheaper than your competitors. This can give you a competitive edge and help you bring in the customers.

Lastly, you are able to have more of a trial and error period. If you try a business and fail, it will be a lot less of a financial loss than if you had a store front. Opening a home based business is quite easy and does not cost a large amount, so if you come up with another great idea, you can start up your business in no time.

Overall, opening a business is a tough decision to make. There are many different ways to go about it. Starting a business from home has many benefits that must be taken into account before taking the plunge into business ownership.

This piece was contributed by Earl Freeman, a blogger and writer who often contributes material on home based business opportunity, business strategies and development, marketing, expansion and other relevant issues; those seriously considering a home based business should think about direct selling as an option.

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One Response to “The Benefits Of Starting A Home Based Business”

  1. Greg Holbert says:

    Great post, Guest Blogger!

    I just have a few points that can also be benefits of starting a home based business: Office supplies and continuing education.

    Your home office does not limit your deductions there. You can also write off your office supplies. You need only prove your purchases with a receipt(s) to deduct them from your taxes. This can include, paper and ink for your printer, pens, staples, paper clips, and many other things. Anything you need to purchase to run your business could potentially be a write-off as long as you are prepared to prove its worth.

    Equipment and office software are also up for grabs as tax deductions. Your computers, copiers, scanners and other machines can be 100 percent deducted for your home business. The cost of software and subscriptions to magazines and other periodicals are also fully deductible, saving you for the year they were purchased in. This can save you quite a bit of money and allow your business to grow with your new software and machinery.

    Any expenses that you want to deduct for continuing your eductions must be related to your existing business. If you work in child care, taking a course called “Early Childhood Education” to brush up on your skills would be tax deductible, but a spin class you take to keep yourself chasing those kids wouldn’t be.

    Keep up the great blogging, and I hope that these points help your readers get that little extra bit of benefit from starting their home based business.

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