The idea of a home business is one that used to be met with a great deal of cynicism. However, with the advent of the internet, next day shipping, and other technological advances, home based business are becoming a real and viable option for budding entrepreneurs. Nevertheless, starting a home business still comes with a number of hurdles that can challenge a new company trying to survive and grow. The following provides a list of the pros and cons of starting a home business:
Pros
Flexibility – The primary advantage of working from home is flexibility. For those with harried schedules, being able to determine when you do your business can be an invaluable asset. As your own boss, you can make time for family or activities as they arise. Moreover, you will have more time to spend, without having to get dressed and commute back and forth from work. With the improvement of mobile technology, you also have the power to dictate where you work, whether it be the local coffee shop or the public library. This added mobility allows you to combine business and pleasure, such as taking the children to a park where they can play while you work.
Creativity – As a home based business, you will not be confined to the directives of your employer. You will have the freedom to introduce new ideas and market your business as you see fit.
Expenses – Working from home means no more suit and tie, no dry cleaners, no transportation costs. For business owners, it means not having to rent an office space as well. Add to that smaller costs such as eating out and morning coffee, and the amount you can save on annual expenses is astounding.
Emotional and Financial Gratification – Embarking out on your own is brave and something to be admired. Doing so and actually succeeding is even more rewarding, especially given that your earning potential is theoretically unlimited. You can go as far as your ideas can take you, and take pride in the fact those ideas are your own.
Cons
Income Flow – Being a home business owner almost guarantees that your income will fluctuate from month to month. Even clients that provide dependable income can disappear at a moment’s notice. Consequently, you will have to learn to save during the peak months to account for the eventual lean times. Furthermore, you are only paid for the work you produce, unlike in an office where you are paid for your time regardless of whether there is work to be done.
Benefits – Not only will you no longer be able to count on a steady paycheck, you will not be compensated for days you are sick. Vacation days will have to be taken at the peril of your business, and you will be fully responsible for obtaining personal and business insurance. There are no matching contributions for your 401K, or other fringe benefits you are privy to in while working in a typical office.
Isolation – Part of what makes an office job easier is the support and help of your co-workers. Starting a home business means you will lose both the guidance of fellow employees and the daily human interaction that comes with it. Although working outside the home can alleviate some the effects of this social quarantine, the lack of conversation may be enough to retain a feeling of loneliness.
Jamie Richards is a writer for EmployersLiabilityInsurance.com an online resource for business owners.