10 biggest reasons to have a home-based business
According to the Australian Bureau of Statistics data, one in three Australian employees now work from home regularly. Of the reasons for doing so, the biggest is to manage workloads, and second is to have no overheads.
But working from home is not just for employees with great benefits, with small business owners following this trend, too. Each year, the number of small businesses with no employees is increasing. While having no employees doesn’t always mean working from home, many sole traders and small business owners take advantage of having a home-based business.
If you’re thinking of making the jump from being an employee to being your own boss (or moving your business from a commercial space to your home), below are some enticing aspects of home-based businesses that are sure to motivate you.
#1. It’s so much cheaper.
The most obvious benefit to running a home-based business is that most of the time, it’s considerably cheaper than having a commercial premises. The initial costs of setting up a commercial space is almost always more than expected, considering the rent, fit-out, furniture and the installation of any other required systems and items.
By having a home-based business in your home and using your existing rooms and furniture, you can significantly reduce the initial setup costs.Running a home-based business is considerably cheaper than having a commercial premises.Click To Tweet
#2. It’s easier to start.
Because it’s cheaper and you can use your existing furniture and items, it’s relatively easier to launch a home-based business. Instead of depending on several contractors to get your space up and running (e.g., lease agent, painter, fit-out specialist, electrician… The list goes on!), you can simply set up your home as necessary and push the launch button when you’re ready.
#3. It’s easier to “fail”.
Many startup businesses fail due to cash flow issues. With a huge chunk of this issue removed, it becomes much easier to experiment with different business ideas in a home business. For example, you can try and “fail” different businesses without having to invest tens (or hundreds) of thousands of dollars each time.
#4. You can manage your open hours.
In a commercial space, irregular or part-time hours could potentially drive customers away due to lack of availability. It can also seem unprofessional or even look like you’re permanently closed.
Running a home-based business allows you to manage your hours and enjoy flexibility. A lot of professionals take advantage of this and start a part-time side gig at home before turning it into a full-blown business.Running a home-based business allows you to manage your hours and enjoy flexibility.Click To Tweet
#5. It saves time.
Not all of us are lucky enough to have an office or a store right next to our home. Depending on the physical location of your workplace, it can eat up a significant amount of travelling time everyday. That’s time you could be spending on work, hobbies or with family and friends!
Working from home can save travel time which you can then use more effectively to do things you enjoy or work productively.
#6. You can do more in less time.
Saving travel time doesn’t just mean that you get to have more free time. It also means you can completely focus on one task at a time, thereby reducing the amount of time spent on doing one task. For example, phone meetings during your commute to the office almost always produces more follow-up work once you arrive at work. Having a home-based business means that you can complete tasks on the spot and minimise the number of times you have to say, “Let me look at my calendar when I’m not driving and get back to you.”
#7. You can enjoy your personal life.
One of the most enticing aspects of being a business owner is that you can set your own hours and make time to do things you would otherwise not be able to do. But having a separate business premises can still force you to think and work like a full-time employee, being stuck in peak hour traffic and missing out on the things that made you want to become your own boss in the first place.
Running a business from home makes it easier for you to enjoy your “me time”, go to the gym when it’s not crowded, catch up with a friend for lunch or spend more quality time with your family.
#8. You can be more comfortable.
Sure, it might not be recommended to spend your work days in your pajamas, but working from home means that you have the freedom to! For business owners that don’t have to face customers, this can be a huge advantage. On those rainy and tired days, what’s better than knowing that you can stay in bed all day and still run your business?
#9. There’s less to think about or manage.
Having a separate business premises requires you to be on top of the small details that you don’t have to think about in a home-based business. This includes an extra set of bills, rent, addresses, subscriptions, insurance, security, and so much more.
You’ll still have to manage these aspects in a home-based business, but it is significantly less if you’re adding them to an already set-up system.
#10. You can get tax deductions.
When running a home-based business, you can claim tax deductions for expenses incurred while carrying out your work. For example, you can claim a deduction for part of your utility bills, phone costs, occupancy expenses (like rent, mortgage interest, etc) and depreciation. This can sometimes be a tricky procedure when considering other factors like capital gains, which is why it’s always a good idea to talk to a consultant or accountant. You can also read more on this topic on the Australian Taxation Office website.
Running a business from home isn’t always the best option for everyone. But considering the saved costs and time, it can be a great starting point for a gradual entry into becoming a business owner. Especially for industries such as allied health, a home-based private practice can be relatively easy to set up and run for a fraction of the costs of maintaining a commercial space. If you’re thinking of starting a business from home but don’t know where to start, reach out to the Kong & Way consultants for advice on the next steps!
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