Post-COVID Economy: 5 Amazing Benefits of Running a Home-Based Business
If you’ve been thinking about starting a business you can run from home, now is the time.
With COVID-19, corporate downsizing and remote working on the rise, no one can rely on a steady and stable paycheck any more.
You have to figure out how to support yourself without relying on the mercy of employers.
Millennials around the world are actively seeking ways how to make money themselves, without having to rely on anyone financially.
Running a home-based business was once viewed as a way for an unemployed person to make some money until a “real” job came along, but today 69% of all U.S. entrepreneurs start their businesses at home.
In 2019, 40 million Americans worked from their homes (the number includes employees working from home for a larger employer as well as self-employed).
What is a home-based business?
A home-based business is any type of business that operates from the owner’s home.
Operating from home and working from home, are however two different things. For examples, truck drivers, consultants or interior decorators are just 3 examples of people who may run home-based businesses but have to travel to provide their services.
What are the benefits of a home-based business?
Whether you are running an eCommerce shop, an agency or offer your services from home, there are many benefits of a home-based business.
Apart from choosing your own hours, location and direction of your business, let’s look at what are lesser-known advantages of starting a business from home?
#1 Home-based business allows you to test your business idea
Most start-ups fail.
Working from a home office allows you to test out a new business idea without a lot of risks. This way, you can determine the viability of your business before investing more money into it by hiring a team or an office space.
If you have to put money out for office space and other fixed costs right away, a start-up failure can be costly.
Before dipping your feet in the business world, successful entrepreneurs know that starting a business with a checklist will help you to make sure you’re not missing anything.
#2 Home-based business has little or no upfront cost
The costs of starting a home business online is at an all-time low. You are taking less of a risk with your new business as less start-up money is required.
At first, you may not need staff, hire premises, buy work equipment or pay bills.
And once your business is up and running, it’s easier to upscale or downscale as you need.
#3 Home-based business is cheaper to run
Working from a home-based office keeps your overhead costs low as you are not renting office space or phones or paying for office utilities.
The zero commute also saves money on gas and wear and tear on your car.
#4 Home-based business has tax advantages
There are a number of income tax advantages to having your home and office under one roof.
Just make sure you get your business up and running properly by creating a business plan to incorporating a company and compliance.
People who work from their homes may be eligible for tax deduction known as a home office deduction.
The home office deduction allows individuals who meet certain criteria to deduct a portion of mortgage interest or rent, depreciation of the space used as an office, utility bills, home insurance costs, and cleaning, repairs, and security costs from their income taxes.
Although the Internal Revenue Service (IRS) has set strict criteria (e.g. your office space needs to have an “exclusive use” only and not be used for other purposes) about who qualifies for the deduction, about 1.6 million people in the US claim the deduction each year.
#5 Home-based business provides flexible work-life balance
Aside from total control, another great benefit of a home-based business is the flexibility it offers.
With a home-based business, you can not only choose when to work but where and how to work.
You don’t have to confine yourself to an office cubicle; instead, you can work on a cruise ship, by the beach, or even on the plane.
The harder you work, the more money you can make. And equally, if money is not your #1 motivation, you can cut back your hours and settle for less money. It’s your choice!
The point is, your earning potential is directly proportional to your effort.
Call them freelancers, contractors, consultants, or business owners – we will see more of them in the future.
It is time to grow our lives through work we love, get the money we deserve and work hours where we’re neither slaves to the office nor sitting at our desks cruising Facebook while desperately waiting for the clock to hit 6.