With many experiencing the benefits of working from home over the past year, it’s hard to imagine ever having to go back to the office. For some, mandatory returns to the office are now career deal breakers, with 40% in a survey considering quitting their jobs if not allowed to work remotely. With the state of work up in the air as companies decide to remain remote, go back to the office, or try a hybrid, it’s becoming more and more apparent that today’s workforce needs alternatives where they can call the shots.
If you’re tired of your career being dictated by controlling higher ups, one alternative is to consider starting your own home-based business. With your primary place of work being your home, you can enjoy WFH flexibility with the added benefits of being your own boss. To help you decide if this career pivot is right for you, we’ve outlined the pros and cons of starting a home-based business.
Pros of Starting a Home-Based Business
Work from Home Flexibility
Starting a home business will give you the freedom to set your own hours and work from home indefinitely. You’ll have complete autonomy over your schedule, and you can designate time for both personal and professional priorities. Carve out hours to get work done during the day and leave yourself time to spend with family, friends, or doing what you love once work is done.
Costs Less to Start Up
Another advantage of starting a home-based business is that compared to other small businesses, it costs a lot less to start up. With your main place of business being your home, you can launch your business with anywhere from $2,000 to $5,000. Choosing a business that offers online services or doesn’t need much equipment can help you keep costs low. Popular home businesses include E-commerce, cybersecurity services, home maintenance, and social media management.
Benefit from a Home Office Tax Deduction
Not only can you get your own business started with a few thousand dollars, but you can even save money by taking advantage of special tax deductions. Set up a designated office at home to claim a home office tax deduction every year and save on your annual expenses.
Cons of Starting a Home-Based Business
Harder to Create Work-Life Balance
Although you have the ability to create your own hours, the fact that you work from home can make it more difficult to actually have a balanced schedule. Beware of the potential for burnout and make sure you set clear boundaries for your personal and professional time. Also, remember to communicate with your family or anyone else you may share a home with so that you can be productive in your home environment.
Limitations for You and Your Business
Having a home-based business may come with certain limitations. For example, if you require customers or clients to come to you, your location in a residential area may not offer the most ideal location for others. Another limitation may be that you have family around during business hours, making it difficult to make professional impressions.
Less Space to Work With
Finally, depending on the size of your home, space may be a challenge. If you’re an E-commerce business, you may be limited by the stock you can store. Even if you do most of your work online, you may only have a small space to work from everyday and this could potentially take a toll on your productivity.
If you’ve decided that all the pros outweigh the cons, use the following infographic from The Zebra for tips and ideas on how to start your home-based business.