The Advantages and Disadvantages of a Home Based Business
If you’ve ever held a regular job, chances are you’ve yearned for the chance to work on home at some point. Long, unproductive meetings, annoying coworkers and several other corporate realities can drive even the most determined employee mad. And if you can become your own personal boss while dodging work, that would seem even better.
However, much like any career decision, you can find advantages and disadvantages of having a home based business to consider. Here really are a few of the advantages and disadvantages of owning a home based business to keep in mind as you make your decision.
Advantages of Home Based Business
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Becoming Your Own Boss
Just like any self-employment endeavor, a home-based business enables you to be your own boss. This could be a liberating experience. In place of somebody else setting your hours, you can work as little or often as you prefer at hours of your choice.
Buying or renting commercial office is expensive. Let’s take Los Angeles, for example. At the time of January 2014, the average rent per square foot was $24.90 each year, or around $2.08 per month. So, in the event that you chose to rent 1,000 square feet of office space, which is about how big is the average location in a strip mall, you’d be taking a look at around $2,075 per month.
While your utility bills will rise if you work at home, your mortgage or rent won’t. And you won’t need certainly to worry about gas prices shooting up everytime the wind blows. In the long run, you may save a large number of dollars per month by going this route.
The common drive to work takes about 26 minutes and presumably takes about the same going the other way. That’s 52 minutes down the drain every day. Assuming 50 work weeks each year, that arrives to approximately 217 hours, or about nine full days, driving to and from work each year. You are able to eliminate this by operating a home-based business.
Disadvantages disadvantages of having a home based business
Loss of Steady Income and Benefits
Like any business owner, your income will soon be uncertain. While contracts can help mitigate this risk, you’ll still lose the security of a regular paycheck. You’ll also have to buy your personal health insurance, establish your personal retirement plan and so on, rather than depending on an employer to provide these benefits.
If someone else is home throughout the day, you may face distractions. The kids mightn’t understand you’ll need to focus on work or your partner might think you are able to complete chores throughout the day. You will need to find a quiet area where you won’t be distracted by other people who cannot grasp you’re really working!
On the opposite end of the spectrum is isolation. While this can be great from the productivity standpoint, you won’t enjoy being alone all day if you’re an extrovert. Nevertheless, you might work from the coffee house every now and then or join online groups to break the loneliness.