A Few Top Benefits of Starting a Home-Based Business
- More Work Time, Less Commute Time. (See video below)
- The Ability to Scale Up or Scale Down Quickly.
- Deduction of Home Costs on Income Taxes.
Home-based businesses are quickly becoming the fastest growing form of business start-ups. Growing your company out of your home allows for flexibility that is difficult when renting or buying office & warehouse space. Although working at home requires self-discipline, the benefits can be substantial – especially in the start-up years.
More Work Time, Less Commute Time
According to a recent Gallup poll, Americans spend an average of almost 50 minutes a day commuting to & from their offices. One of the best benefits of working in a home office is that commuting involves no more than a few steps to the spare room or the basement. That leaves more time for revenue-producing activities.
The Ability to Scale Up or Scale Down Quickly
When you rent or own office space, the size of your business is fixed to the size of the space. In the event where downsizing makes sense, you may not be able to do so quickly if you are signed to a long-term lease. Working from your home allows you to hire more people or fewer people, or simply work longer or shorter hours to right-size your business operations.
Deduction of Home Costs on Income Taxes
The tax benefits of operating a home office can be lucrative. If your situation qualifies, you can deduct a portion of your home’s expenses, such as mortgage interest, property taxes, utilities & repairs & maintenance, against your business income. To qualify, your home office must be your principal place of business & you can only deduct the proportionate amounts of the total expense which are directly related to your business. Although you cannot create a loss with your home office expenses, you can carry them forward to future tax years if you do not have enough business income to use them up in the current year. Running your own business has both personal & financial perks.