Are you fed up with the 9 to 5? Or are you looking for a career change? Deciding to run a business from home can be an excellent option for individuals looking for an entry into business ownership. While starting your own business is never easy, running a business from home can make entrepreneurship more attainable and allows beginner entrepreneurs to realize the benefits of business ownership with less risk, time, and cost. Discover how technological capabilities and low-cost operation enable more entrepreneurs to start a home-based business.
What is a Home-Based Business?
A home-based business is defined as operating from a business owner's or entrepreneur's residence. According to The U.S. Small Business Association, 50% of all small businesses begin at home, and 19 million are home-based.
All business activity does not have to happen in the home to run a home-based business. Depending on the business, some of the work can occur at other locations. For example, suppose you are interested in starting a landscaping business. In that case, you can run the administrative tasks from a home office even though the services are completed outside the home. Additionally, there are no size restrictions on home-based businesses, employees can be added as needed, and you have control over how big you want to grow your business.
4 Advantages of Starting a Home-Based Business
#1. Low Cost
A home-based business owner may have distinct financial advantages over brick-and-mortar competitors. Working out of your home can significantly cut the cost of getting started and eliminate many ongoing overhead costs. By keeping their costs low, home-based business owners often receive a return on their investment more quickly.
Additional ways that home-based business owners can reduce costs may include:
Eliminate Commuting Expenses - It’s reported that Americans spend between $150 and $200 on gas every month. With a home-based business, you can eliminate various commuting expenses, including fuel, tolls, wear and tear on the car, and more frequent tune-ups due to mileage.
Tex Benefits - It’s A home-based business can offer unique tax advantages, including an opportunity to write off equipment, utilities, maintenance, property taxes, and rent or mortgage. Check out the deducting business expenses section of the IRS website for more information.
Being in charge of your schedule is frequently one of the most significant benefits of owning a home-based business. A flexible schedule means you can schedule your work time around family commitments and pursue other personal interests. With complete control over your day-to-day, you can work from a different location, change your schedule, or re-prioritize the order of the tasks you must do, customizing your work hours to meet the needs of your life.
#3. Ability to Scale Up or Down
Your business may initially be home-based, but growth could be a consideration to expand into an office space. When you operate a home-based business, you can hire as many people as you want, so long as they are remote or in the field, quickly adapting to increasing demand without being tied to an office space you own or lease.
Furthermore, particularly when you own a home services franchise, you can typically set up a home office to start with and always have the option to open an office later. This removes the stress of opening a brick-and-mortar location immediately, removing hefty overheads and rental agreements that can put added pressure on your business startup.
#4. Doing Something You Love
One of the best aspects of starting a home business is having the ability to choose to work in a field that you enjoy and are passionate about and turn that passion into income. You're generally more likely to achieve success if you focus on pursuing your passion when starting a home business. Remember that your business or product doesn’t necessarily have to be something you love. You may be passionate about solving a problem in your community or have always dreamed of starting your own business.
Best Home-Based Business Ideas
With so many home-based business ideas, which should you consider?
For the best home-based businesses, start your search with Neighborly®. Neighborly offers franchise opportunities in over 19 home service industries designed with a proven business model. As a franchisee, you’ll have plenty of possibilities to be your own boss, lead a flexible life, and live your dreams.
Take the QUIZ to find the right franchise for you.