January 14, 2015 | Jennifer Goodwyn
Home-based businesses are quickly becoming the fastest growing form of business start-ups in America. In fact, over half of the 600,000 new businesses founded each year are grown out of someone's home office of basement. Although working at home requires self-discipline, determination and comes with an element of risk, the benefits of ditching your corporate job for a home-based business can be substantial. Here are the top incentives for taking the plunge and starting your own home business.
Be Your Own Boss
Although managing your own business is risky in itself, being your own boss means your choices and ideas will always be implemented – you can choose to listen to your fellow employees or run with your own ideas because your word is final. While your schedule may be impacted at first, you'll enjoy a flexible work schedule once the business takes off and begins to grow. If you're tired of working according to someone else's schedule and want more freedom to make crucial business decisions, being your own boss should be your core incentive for starting your own business.
Choose Who You Work With
We've all been in situations where we work with someone who grinds our gears, and we only have two choices: deal with it or start sending out resumes. That's not the case when you run your own business, since you make all hiring (and firing) decisions. As your business grows and the employee demands change, you can hire personal friends and family members to work with you in different capacities. If you surround yourself with positive people who give you confidence and optimism, you'll have the moral support you need to keep your business moving forward.
Income Tax Deductions
The tax benefits of operating a home office can be lucrative – everything from a portion of your home's mortgage and property taxes to utilities and maintenance can be deducted from your business income. To qualify, your home office must be your principal place of business and you can only deduct proportionate amounts of the total expense that are directly related to your business. If you conduct the majority of your business from a virtual office, you could still qualify for other home office deductions. For more information on small business tax deductions, click here.
Sense of Pride
One of the biggest differences in owning your own business as opposed to working for someone else is the sense of pride that comes with establishing something of your own. Once you've created something of your own from the ground up, you'll begin to truly appreciate personal ownership, hard work, creative thinking, and tenacity. As a business owner, it's tough to take an idea and turn it into something tangible and successful. Doing this can earn you respect in the industry and among your peers. Essentially, you'll get the recognition and reward you deserve as a small business owner without having to feel obligated to share the limelight with your boss or employer.
Work Time> Commute Time
According to a recent Gallup poll, Americans spend almost an hour a day commuting to and from their office. In major metropolitan cities, such as Washington D.C. and Los Angeles, this number can be tripled. One of the best benefits of starting a home-based business is that commuting becomes obsolete – all you'll have to do is walk from your bedroom to your home office. This leaves more time for revenue-producing activities, and is sure to improve your stress levels and positively affect how much you spend on gas and auto maintenance as well.