Operating a home-based business has its advantages and disadvantages, related to both work and family life. Before a person makes the decision to pursue home business opportunities, it is wise to evaluate the pros and cons.
Starting a Home Business – The Pros
There are many positive factors in starting and running a home-based business. These pros of home business opportunities include:
- A person can pursue at home jobs as a part-time or side business, while still maintaining a full-time job with that full-time income.
- A person can have a more flexible lifestyle with work and family because there is no 9 to 5 time clock.
- A new home-based business can be run with lower start-up and operating costs, unlike a business outside the home that requires rental property to house the business.
- For the person who has young children or an elderly adult to care for, at home business opportunities can simplify care-taking choices.
- There is no commuting, so a person saves the costs of vehicle wear and tear, along with gas money savings.
- For the person who owns a home-based business, there is the satisfaction of being “the boss.”
- Home business opportunities offer the opportunity for tax benefits and write-offs, related to the home office.
- A home-based business can provide an opportunity for a person to showcase creative or unique talents.
- A work at home business allows people to set their own personal goals (instead of having a boss or company set the goals for them).
- Depending on the family situation, it can be possible for the person with a work at home business to employ family members in the business.
Starting a Home Business – The Cons
In contrast to the “pros” of starting a home-based business, there can be some negative factors in pursuing at home business opportunities. These include:
- Because at home jobs are operated inside the home, physical space may be restricted, impacting the potential for growth and affecting family use.
- Starting a home business can interrupt or disturb family life.
- There is a financial risk in starting or operating any kind of business, including a home-based business.
- Because the business and family life both exist in the same space, both may be disrupted at times.
- Starting a new business can be very time consuming. Even for a work at home business, there may be long work hours that impact family time.
- Some of the employee fringe benefits (vacation time, training, health or life insurance) available in a traditional company are not readily available for the home-based employee.
- The person starting a home business might be somewhat isolated, missing out on some of the informal social contacts or opportunities to network.
- A home-based business does not offer the job security that most traditional employment would provide.
- A person starting a new business has to learn about the legal provisions, such as zoning requirements, which have to be met for home businesses.
- At home jobs can lead to stress in trying to balance family and business life.
- Home-based employees might struggle in their relationships with family members and friends who intrude on their work time.
- Business activities (customer or client traffic, work hours, or noise) may cause problems for neighbors.
- For the person pursuing home business opportunities, discipline is required to establish steady, work-at-home habits.
How to Decide About Starting a New Business
For those who are still wondering whether or not to start a home business, the Small Business Administration website offers a self-assessment tool focused on starting a new business. This tool is not specifically designed for at home jobs, but it is geared toward small businesses and helping people determine whether they have the skills, characteristics and experience to be successful in starting a small business. The assessment takes about five minutes to complete.
A person thinking about at home business opportunities can use the self-assessment tool along with considering the pros and cons. Then make the decision whether or not a home-based business is the right step.
For more information about small businesses, see the following articles:
Resources for Women Small Business Owners
References:
umext.maine.edu, "Starting a Business in Your Home: Weighing the Pros and Cons" (accessed May 28, 2010)
ag.ndsu.edu, "Home-Based Business... Is It For Me?" (accessed May 28, 2010)
Donna McKinney - Donna McKinney has a 25-year career writing on topics ranging from science and technology to health to Christianity. Her articles are ...
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