Starting a home business is a significant decision, especially with so many various risks involved. Unfortunately, the business failure rate also doesn’t help encourage entrepreneurs either, as over 50% of small businesses fail in their first year.
However, don’t let the data discourage you from building a business. There are many great things about being an entrepreneur that is worth considering.
Reasons to Start a Business From Your Home
In this article, we’ll share ten reasons to start your entrepreneurial journey at home.
1. Start from Scratch
When working for someone else, you may dream of things that could have been done better. For instance, making the bureaucracy more effective or giving more fair wages and family time for employees.
If you’re excited about the idea of developing things, starting a business from home is for you. Here, you’ll get to start from zero by making a business plan and then creating a vision and a structure for your company.
2. Follow Your Passions
One of the most significant benefits of starting a home business is turning your passion or hobby into income. In addition, if you’re passionate about what you do, you’ll be more likely to find the motivation to work hard and achieve your goals.
Loving what you do can boost your productivity and increase your performance so that you’ll probably work fewer hours yet do more work. For example, some business owners find success by working only 20 to 30 hours per week.
If you’re unsure what you’re passionate about yet, brainstorm things you’re interested in and ask friends or family to help find your passion. Test the idea first by making it your side job to see whether it’s your true calling. Then, if you like it, grow it to become a full-time business.
3. Freedom and Entrepreneurship
Having your own business means you have the freedom to set your own rules.
One of the rules is to set yourself in terms of service when working with other people. Working together with the wrong clients can make you feel resentful. An entrepreneur can avoid that by screening the possible clients and saying no to ones that don’t meet the criteria.
Having a home-based business also lets you set your work attire. No more formal outfits if you don’t like them. Now you get to start wearing comfortable clothes since you work at home.
4. Reap All the Benefits
When you have your own business, it’s up to you to set the rates and prices. You’re in total control of the service or product prices and the profit you’ll get.
Another benefit of working from home is that you’re able to deduct your home office expenses from your taxes, such as mortgage interest, utilities, and repairs. This will help you lower your tax bills.
Make sure to also look into government programs for small businesses. These programs vary from loan programs, incentives, or management and technical assistance.
5. Become Financially Independent
Financial independence means your business produces enough revenue for you not to have to work anywhere else anymore. At first, the money won’t be huge, but your wealth will also increase as your company grows.
When your business grows large enough and reaches financial success, you have the option to sell it at 1x to 50x annual revenue depending on the market.
For example, Brynn Putnam sold her home fitness startup for $500 million to Lululemon, an activewear brand. The startup showed a strong following online and high potential growth on its exercise machine.
6. Achieve Work-Life Balance
You have to follow a fixed schedule in the office and a boss that gives you orders on weekends. But, as a homepreneur, you have control over your schedule, and you’re your own boss.
You can adjust your work schedule to make time for family, friends, or personal interests. However, having a workplace at home will also cut your commuting time which can cause stress and tiredness.
7. Learn New Skills
Many small business owners generally do everything alone when they start. This is because they want to control all aspects of the company and reduce the costs of having employees.
By doing so, you will pick up many new skills, from inventory keeping and finance management to customer service. When the company grows, you might also have to learn how HR hires the right people.
The business environment is complex and dynamic, and it encourages continual learning.
8. Allow Personal and Professional Growth
Having a home-based business means you’ll have to work on many things, like setting goals, arranging your schedule, and communicating with clients and customers.
When building a business, you may also do some training, get a mentor, join a community to promote your business or get professional assistance. By the time your business grows, you’ll hire people and become their leaders.
As a result, you’ll also develop professional and personal growth during the process, including:
- Time management
- Communication and social skills
- Negotiation and persuasion
- Leadership and people management
9. Improve Creativity
Small businesses have to evolve as the situation changes. For instance, your marketing campaign doesn’t work well, so adjustment is required. Or, your web design doesn’t perform well, so it needs a makeover.
Doing all of these things needs creativity to come up with unique ideas. And as you continue doing these activities, you’ll adapt and improve your creativity skills.
Moreover, as it’s your own business, you won’t have to follow the existing procedures and have the freedom to innovate and execute your ideas in any way you choose.
10. Open Job Opportunities
At the start, your business will be small. However, you will inevitably need to hire employees when it grows biggSmallmall businesses are essential for their economy growing in the US wth as they provide around 50% of the US employment market.
To market your job openings, post the advertisements on job posting sites like Glassdoor or Indeed. Showcase benefits of joining your company, such as flexible working hours and health insurance, to encourage people to join.
Don’t dismiss it right away due to a high failure rate or limited capital if you dream of starting a home business.
There are many reasons to build a home-based business, such as:
- Following your passion
- Having freedom in setting rules, prices, and company culture
- Creating job opportunities
- Growing your personal and professional skills
- Getting financial benefits, like tax deduction and loan programs
These reasons are enough to start your own business. So begin planning yours and become your own boss.