Owing to the continuing economic slump with no chance of a recovery anytime soon, the number of people setting up home based businesses is growing by the day. It is estimated that are over 16 million people running home based ventures in USA alone. Home based business enterprises are increasingly becoming the main source of livelihood for many people around the world.
Many causes, all of which are realistic, can be ascribed to the rising popularity of home based businesses. Firstly, due to the prevailing economic recession, more and more people are losing jobs as many companies and business organizations are either closing down or downsizing. Secondly, finding a new job is increasingly becoming tough with every passing day. These are two compelling reasons that are forcing many people to consider the numerous home based business options.
There are other reasons as well as to why many working professionals are establishing a business start-up which they can operate from their homes. Working from home gives you the flexibility to work at your pace as you can choose your work hours. You are relieved from the stress of getting ready for work and also from the panic of getting to your office in time. You also get to spend more time with your family and friends. A home based business also lets you lead a more balanced lifestyle.
However, there are also certain downsides to a home based business endeavor that you should apprise yourself with in case you’re chewing over the idea. For a start, you’ll find it difficult to concentrate on your work because of the distractions that are common in all homes with families. If you have clients or business associates dropping in at your home for any reason, they may find the setting to be unprofessional. There are other disadvantages as well. So, before you can get started, you’ll scrupulously need to weigh the Pros and Cons of Home Based Business Opportunities.
The Pros of Home Based Business Opportunities
1. Monetary Benefits. You’ll be enjoying several monetary benefits when you set up and operate a business from the cool confines of your home. Firstly, your overheads will be low as you won’t have to hire a separate office space and pay a rent every month. Moreover, the scale of your investments will also tend to be low as your business project will be a home based undertaking.
Your working capital requirements will also be at a minimum because you’ll able to take care of all the business aspects like accounting, marketing, customer service, and technical support etc. all by yourself. You’ll really not need to employ staff as you can get your family members to assist you in your day to day activities. Other financial benefits accrue to you as well. For instance, you’ll be saving money on conveyance, food and other unavoidable expenses as you won’t have to leave home for work.
2. A More Balanced Lifestyle. When you function from your home, you’re able to maintain a better balance between your family life and work life. You’ll have the flexibility to leverage your working hours in a way so that you can spend more quality time with your family. As you’ll not have to follow a 9-5 routine nor report to a superior, you’ll be able to program your business hours based on your family concerns.
You’ll have better leeway in scheduling family vacations or holidays. Additionally, you won’t be required to engage a babysitter for your kid or kids when they’re home as you may be competent enough to keep an eye over your children. Furthermore, your home based business can be an excellent means of not only keeping your family united but also help improve the bonding amongst the members.
When you get your family members to help you out with attending to clients, answering phone calls or taking orders you’re able to concentrate better on your core competencies. Your family members pick up business skills that’ll help them to stand in good stead in future. Moreover, the life skills they imbibe will come handy when they have to handle all the business responsibilities in case you’re ill or indisposed.
3. Tax Advantages. You’ll be able to claim tax deductions for your home business. You have to pay a tax for using water, electricity and other necessary utilities. You also have to pay real estate duties, sewerage service surcharges, and interests on loans and mortgages.
If you can convince the relevant authorities that you’re operating a business from your house, you’ll be able to show your utilities’ expenses under business accounting heads. However, you’ll have to satisfy the authorities that you have a distinct area in your house for your home based enterprise. You’ll also get certain income tax benefits.
4. Scope for Earning More. As far as your home business is concerned, you’ll be solely working for yourself. In other words, it implies that you’ll not have to take orders from someone else. So, nobody else will be benefiting from your hard work. You’ll be enjoying the fruits of your labor. Since you’ll be the boss of your own business, you’ll have the opportunities to augment your earnings and develop your home oriented project.
1. No Fixed Earnings. Although you’ll have enough scope for increasing your income from your home business, you’ll also have to be mentally prepared for phases when your earnings might plummet. Unlike a salaried job, you cannot expect to have a fixed amount at the beginning of every month. Income uncertainty in a home based enterprise is a reality you’ll have to live with. There will be stages or periods when you’ll not be getting orders at the rate you’re used to receiving and your proceeds will decrease.
Therefore, it’ll be wiser on your part to initially attend to your home business on a part-time basis after your day at the office is over. If and once your business becomes established, you can consider running it on a full time basis. Having a working spouse would be an additional advantage for you.
2. You’ll Be Missing The Working Environment Of An Office. Working from the home front would generally mean working all by yourself. If you’re the sociable type, you’ll be hugely missing the working atmosphere of the office where you were employed last. At times, you may end up feeling isolated and totally cut-off from the outside world.
3. No Office Perks Or Work Insurance Benefits. Since you’re your own employer or supervisor, you’ll have to make your own arrangements for insuring your home based business. You’ll also have to take out an insurance policy for your health or for any medical emergency on your own. You’ll not be able to look forward to the perks or incentives that an office worker is entitled to.
4. Working From Home Can Be Distracting. You may have a feeling that working from a home office will be plain sailing. However, it is easier said than done. If you’re at home most of the day, family members will expect you to run small errands or do home chores on short notice. Furthermore, you’ll be prone to getting distracted or diverted if there are kids at home running all over the place.