Thousands of Americans are now taking the economic slowdown as a sign to leave the corporate world and go into business for themselves. Although a recession isn’t the best time to start a business, there may never be a perfect time. And if you have a great idea, several years of experience and the drive to turn your dream into a reality, you’ve got a great chance to be successful. Most new businesses must start out being run out of a home office, just by the nature of the beast. You probably don’t have the finances to establish an office space, and that’s probably not a good idea even if you did. But running a business out of your home isn’t ideal. All of the positives are balanced out by some very real and impactful negatives. So you’ll have to weigh the pros and cons of starting a home based business.
You should certainly start with the positives, as you’ll need that motivation when working through the trials of launching a business. The first one is the freedom of schedule you’ll enjoy. While working from home you’ll be able to set your own hours, based upon your market and how you work most effectively. You’ll be able to take breaks to see to chores, to pick up your kids from school or simply to go elsewhere for a little bit of inspiration. And with no time wasted on commuting, you’ll have plenty of time to give to the work on your plate.
The other side of that coin is having to motivate yourself to do the work with no outside influence. No longer will you have that boss breathing down your neck at every deadline. And with a home office you won’t have the heavy expense of a space rental pushing you to cause results. This sort of situation doesn’t work for all personalities. You’ll have to craft a schedule and stick to it, and your home can provide plenty of distractions. Remember all of the time you’ll have to handle those chores now that you’re working from home? Well, every time you step away to do that your work will suffer. If you’re not careful, you could find yourself losing any momentum you’ve been able to build.
Those pitfalls aside, running your business from home can also provide some very real financial benefits. If you take the time to incorporate your company, you’ll be able to claim any of your home office expenses on your business tax returns. Setting aside a room in your house as a home office means you can claim a percentage of your mortgage or rent payments as a business expense, along with everything else it takes to keep your company moving. That means all of your utilities, any computer equipment you need to purchase, the office supplies and furniture that stock your office, and even the car you use to get from point A to point B. You’ll also qualify for some of the best credit cards at Ratesupermarket, which can certainly come in handy while you’re dealing with issues of cash flow. While it’s not a perfect fit, starting a home based business could provide exactly what you need to be successful.