The Benefits Of A Home Based Business

For some reason many people think a business that is run out of the home is not really work.  I've even heard some people say home based business operators are lazy, unmotivated or don't want a real job.  These nay-sayers  couldn't be more wrong.

Most people that run a business out of there home work very hard at it.  That being said there are many different types of businesses with different levels of commitment required.  Basically, you get out what you put in.

What Can You Expect To Gain:

This post is not about the different types of home based businesses though.  Its about the benefits of running one.
  1. Tax Savings.  Everyone pays taxes.  The average employee will pay taxes on every dollar he earns and if he's lucky he might have a few allowable deductions or credits that he can use to recover some of his money.  The home business owner also pays taxes on every dollar earned but he can then claim deductions for all the money he spent to earn his income.  This is powerful. 
  2. Your Own Hours.  If you work your own business out of your home you can set your own hours - to some degree.  Obviously, you will still need to interact with the general public during regular business hours.  You can choose how many hours a day you want to work. When you start. What days you take off, etc.  Usually though, many home business owners tend to work longer hours that they did at their regular day job.  On the plus side, those hours benefit you directly not some corporation.
  3. Family Time.  Many home business owners are stay at home mom's or dad's.  Often they work when the kids are napping or at school.  If available often parents will drop their kids at preschool, play school, a babysitter or daycare once or twice a week so they can work and the kids can socialize with peers.
  4. Attitude.  While its true that there might be more pressure on you to make your business work its your business.  With the pressure comes a sense of pride, a sense of ownership and a level of satisfaction that you normally wouldn't find as an employee.  You now have a reason to get up in the morning and your motivated to go to work.
  5. Your The Boss.  You get to make the decisions.  You get to reap the rewards.  You get to hire and fire.  You're the boss!  That also means you are responsible for all the bad decisions as well but - you're the boss!  I bet that feels good.
To put this in perspective lets look at Jill.

Jill is married.  Her husband works at a construction job and makes decent money.  Jill is a hairdresser.  They have two children in elementary school.  Jill's wage pays for the babysitter they need to look after the kids everyday after school and the odd Saturday if they are called to work.

Jill quits her job and sets up a hairdressing shop in the spare bedroom at their house.  Now Jill is able to be home when her kids get home or if one of them is sick - no more babysitter.  Jill builds a clientele and is busy.  She hires someone to come in part time and help her.  Since she has help Jill expands her business to include hair cuts and styles at the clients home.  Everyone is happy.

When tax time rolls around Jill is starting to worry.  She has made more money than she ever did working for a wage.  Fortunately, she is able to lower her earned income with business deduction.  The cost of setting up her shop and all her supplies are deductible.  Her employee's wages are deductible.  She can also claim a portion of the household utility bills and mileage for the use of her car.

In this example our home business owner is really working her business hard.  If you are not ready to commit to that degree there are many businesses you could work in the evenings or weekends.  As long as you can show that you are running a business with the intent to make money you should qualify as a home business as far as the tax man is concerned.  Local by-laws may limit you to some degree so always check that before you commit yourself.

Your home based business may consist of only an office in your house if your business is internet based or requires you to visit clients homes.  That is another benefit - you don't have to make your home assessable to the public - go to them. 

What's Holding You Back?

If you have an entrepreneurial spirit then a home based business might be a good fit for you.  Look around your community and see if there is a need you can fill.  Check out the by-laws relating to home based businesses.  Then plant a sign in your front yard and get to work.  Build your business slowly and stay working at your day job until you are confident enough to run it full time.

Home based businesses are not for everyone but you might just find one you.