The following are the 7 greatest advantages of a home based business:
- Personal freedom
- Freedom from controls
- Have more time for your family
- Low startup costs
- Early break-even
- Opportunities to make money
- Financial security
In these days of job losses brought about by economic recession and worsened by the COVID-19, starting and running a home based business might not be a bad idea.
The need to consider starting your business from home as an option has become more compelling , especially now that companies are:
- reducing the scale of their operations
- off-loading some of their employees.
The downside of running your business from home will be dealt with in a subsequent post.
In the meantime, this article is looking at some of advantages of starting your business from home.
Home based business: Personal freedom
When you start your business at home, you can have the advantage of managing and optimizing your time to enable you achieve your goals.
Firstly, you will be able to work at your pace. For example, you can adjust your work schedule to meet your needs.
Secondly, if you are currently in a paid job, your employer will use you from 8.00 am to 4.00 pm from Monday to Friday.
Thirdly, in the course of your employment, your employer will milk the best of your abilities, talents and skills.
In other words, often times you are most likely to return home totally spent or burnt-out.
Therefore, one of the best ways to go about this problem is to start a small business from home.
Freedom from controls
Another advantage of a home based business is that you will be able to:
- avoid the rules, regulations and other controls associated with paid jobs
- make private or business journeys
- avoid threats of sack, suspension or demotion
- prevent job insecurity
Therefore, freedom is one of the major advantages of starting your business from home.
Time for your family
A Home-Based Business will provide you with a great opportunity to have more time for your family.
For example, you will have time to:
- monitor the progress of your children’s academic activities
- track the behavior of your children
- ensuring that your children do the right things at the right time
- retract wayward children (if any) to behave well
- assist your wife in the often tasks of parenting.
Furthermore, you will be able to instil in your wards important cultural and ethical values of your society.
Most importantly, you should be able to balance the time needs of your family and that of your business.
Low startup costs
Another important advantage of a home based business is that you do not need a ton of money to start one.
However, how much money you will need to start your business will depend on the nature and size of your business.
Other advantages include, among others:
- You will not need to pay rent for office or shop space
- You can create an office or shop from one side of your apartment
- Utility bills will be taken care of by you, along with your regular expenses
However, if the business becomes successful and you want to apply pure financial and management accounting principles, you might want to apportion electricity, security, salaries and other costs to the business.
Most importantly, apportioning the obvious costs to the business, will be meaningful when it is time to prepare annual financial statement for your business.
Early break-even point
Yet another important advantage of a home based business is that your business can break even early.
Firstly, for the avoidance of doubt, break-even point is that point at which your business is neither making profits or losses.
Secondly, break-even point is where your business revenue is equal to your business expenses.
Most importantly, it is easy for your business to break-even because it usually has low fixed and variable expenses.
Opportunity to make money
A home based business will test your ability to make money, using your intellect, abilities, resources and skills.
Moreover, it will also provide you with the opportunity to try your entrepreneurial skills.
Most importantly, it will make you to know the difference between working for someone and running your own business from your home.
Home based business: Financial security
You can enjoy financial security if you are able to run your business from home.
First and foremost, in order to enjoy financial security, you must be ready and willing to:
- work very hard to remain in business
- be able to show total commitment to the success of the business
- avoid the tendency to relax just because your business has achieved a certain level of success
- be able to overcome the temptation to be complacent because you are now your own boss
Most importantly, do not forget that it is good to be successful but it is better to remain successful.