There are lots of advantages to having a home-based business. You hear a lot of talk about working in your bathrobe, no commutes, and better quality family time. But one very important advantage that is sometimes overlooked is low overhead. Low overhead is very advantageous and becomes even more important during difficult economic times.
Overhead items that most business have – such as building rent, office furnishings, equipment leases, payroll, and inventory – don’t usually exist with a home based business. During difficult economic times, most businesses have to look to pare down these overhead expenses somehow to stay afloat. Home based business on the other hand, are lean by nature and don’t have these types of expenses dragging down their bottom line.
That’s not to say that a home based business can’t fail; it certainly can. But low overhead expenses give the home based business a tremendous advantage to stay afloat in times where profits and revenues dip.