Excerpts from “Home Based Business Resource” – www.business.gov
When you realized that you are just not going to be able to open your own McDonalds, because it will take a million and a half dollars, it is time to look for alternatives.
You may want to start more basic, with a home-based business. According to www.business.gov:
90% home-business owners said “they would go into business again”
78% home-business owners stated that “having more control over their lives
was an important reason”
46% home-business owners cited that “making lots of money was a motivation
for starting their own business”
Advantages of a Home-Based business
A flexible schedule
Integration of family and work responsibilities
Less involvement with others in a regular work environment, such as power struggles
and red tape
No commuting time (unless you travel to a customer’s home or place of business)
Control of your own personal environment (temperature, light, work breaks, etc)
Self-determination and independence; increasing personal fulfillment
Seeking and setting personal goals
Remaining in a community or moving with a spouse to a new community even when jobs
are scarce or not available
Disadvantages of a Home-Based business
Needing to know a lot of information to operate a business successfully
The risk involved in operating a business
Conflict in ownership of time (when is it my “own” time and when is “business”
Lack of guaranteed employee fringe benefits
Many competing roles and responsibilities (producer, promoter, bill collector, customer
Lack of job security
Loss of home space use by family
Lack of self-discipline
Little opportunity to delegate tasks to others
Long hard hours
legal requirements including zoning regulations
Choose a Franchise Home-Based business to reduce the risks:
Specialized Employment like senior care, maid services, commercial cleaning or tutoring
“Can You Live Where You Work… and Work Where You Live?”
A unique situation occurs when a business is operated out of the home. Conflict
can result from the infringement of the customer/business interaction on family
functioning. A family and business does not integrate successfully in the same space
without some planning. Five areas of family functioning are likely to be affected.
Family cohesion. Can your home support space for both business and family?
Personal and family time schedules: Can you set up parameters for business
schedule and family schedule?
Use of space: What type of space is needed? Office space? Storage space?
Equipment? Confidentiality? Living space? Space separations must be maintained for
deductions as business expenses for tax purposes. One must determine if this part
of the house has too many uses that are part of the pattern of your family’s
life to also be used in the business.
The Neighborhood: Will the activity of your business violate any city ordinances?
Be inconvenient for neighbors?
Risk handling behavior Is your family willing to take financial risks and
changes in your life? Or are you risk adverse and desire a more secure environment
The most challenging business tasks include:
Marketing to gain additional business;
Financial record keeping
Avoiding overhead when possible
Assistance in managing varied responsibilities
The information from this article can be found on www.business.gov
“Home Based Business Resource”
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