Top 10 Advantages of a Home-Based Business

For those people looking for a good entry into business ownership, there are many advantages to starting a home-based business. While starting your own business is never easy, more and more entrepreneurs are discovering the benefits of running a business out of their homes.

If you are looking to get out of the rat race and become your own boss, a home-based business may be the right decision for you.

Top 10 advantages of a home-based business

1. More personal freedom

If you're used to spending hours in traffic to and from work every day, some of the most exciting advantages to starting a home-based business are your newfound freedom and the retrieval of lost time. When you can run a business out of your own home, you have those extra hours to regain control of your personal life. Plus, there are no bosses, no dress code, no set work schedule, and no office politics to maneuver. All you need is personal drive, discipline, and good time-management skills.

2. You get to keep the money you make

It’s a simple principle: the harder you work, the more money you can make. Your earning potential is directly proportional to your performance, so you don’t have to wait for a raise or a promotion. You work harder, and you produce more. You'll also save money on gas and food. Preparing lunch at home is more cost-efficient and offers a nice break in your workday.

3. Increased opportunity

With so many corporations and industries in a slump, starting your own home-based enterprise means you can create your own income-producing opportunities. Good job prospects can be scarce in some industries, and promotional opportunities within major companies are also shrinking.

4. Less risky than starting a brick-and-mortar business

Running a business from home takes much less startup cash than a freestanding business, or even a franchise location. And once your business is up and running, it's cheaper and easier to maintain than a separate business location.

5. Tax advantages of a home-based business

There are a number of tax advantages to having your home and office under one roof. You can deduct a part of your home's operating and depreciation expenses on your home as business expenses. This can be a percentage of your mortgage, property taxes, insurance, utilities, and/or the expenses of household maintenance. Check out the deducting business expenses section of the IRS website for more information.

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6. More time for friends and family

This is especially important for parents of school-age children: you can see the kids off to school and on most days be home when they return. Also, if someone in your household is sick, it's easier to offer care when your office is just down the hall.

7. Less stress

It's less stressful to juggle the demands of work and family when you can generally set your own schedule, a big perk of working from home.

8. Opportunities for professional growth

Being your own boss gives you the chance to wear a lot of hats: sales director, marketing professional, strategist, business development manager, and more. This gives you insight into and experience with all the aspects of running a business, which, in turn, makes you even more marketable.

9. Increased productivity

Now that you no longer have to budget time and energy for commuting or a succession of useless meetings, you should have a lot more time and energy to invest into your business and make it a success.

10. A creative outlet

Launching your home-based can be an opportunity for you to give birth to your passions and potentially create a money-generating outlet out of your hobbies or personal interests.

Do your research before starting a home-based business

All that said, starting and growing a business is challenging, whether it's a small online business you run from your home or a large company with a full staff and a professional office space. Read 101 Secrets to Running a Successful Home-Based Business for a good overview of some of the important issues you should think about before you start a home business. Good luck!

FAQs about home-based businesses

Below we have summarized the most important questions and answers on the subject.

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