The author's home office.
The current economic downturn, corporate downsizing, demise of job security, slash in retirement benefit programs, increase in individuals and families living paycheck to paycheck, and employee dissatisfaction at an all-time high, has given rise to self-employment, particularly home-based businesses. With the recent advancements in technology and the ever growing desire for people to create rewarding lifestyles, people all across the nation are considering other options to earn a living.
Statistics from both the U.S. Census Bureau as well as the U.S. Bureau of Labor and Statistics show that the number of self-employed persons and home-based businesses grew over the last few years.
As outlined by the National Association for the Self Employed and the SBA Office of Advocacy:
"… home-based businesses represent 52 percent of all firms and provide 10 percent of the total revenue of the economy. The Congressional Budget Office estimates that nine million of the 17.3 million small businesses in the United States are home-based, and 55 percent are operated by women. Many home businesses are started to provide a secondary income, as evidenced by the fact that sixty-one percent of businesses earning less than $5,000 are home-based."
The home-based business industry is now a reality for many working parents, single parents, retirees, students, or anyone who needs flexibility and has the desire to create a primary or secondary income or take control of his or her life. Why do some people prefer a home-based business over a job—either outside the home or even a work at home job? The rewards of starting a home-based business are numerous and because life is complex, some of these advantages overlap and do not fall neatly into a single category. One of these advantages may appeal to you.
Independence
When you own a home-based business, you are the boss. You are able to set goals for yourself without the constraints of a job description. You have full control over your personal work environment (furniture, temperature, lighting), when you work, how much you work, which projects to take on, and who to work with. You also have the ability to work in other locations such as while on vacation or relocate completely to another part of the country without losing your income or benefits.
Income
Depending on the industry of your home-based business, your earning potential may be unlimited. Unlike most "jobs," which pay an hourly rate or annual salary, you have more control over what you earn by the amount of work you are willing to accomplish. How many times have you heard about people with salaries who work more than 40, 50, 60 hours per week who do not get paid an additional income or bonuses for the extra time and effort they put in to complete a project? Your earning potential with a home-based business may not be evidenced overnight, but over time you have the opportunity to earn more than you ever will working for someone else.
You need to be very proactive about choosing your projects, finding customers who need and use your services or products, as well as being educated on how to market and advertise those services or products in the most successful, cost efficient method. Your desired income level may not always be guaranteed and will not materialize immediately. However, there are many business owners who provide a unique product or service, and despite the recent economic downturn, have not been adversely impacted and have seen a steady growth in their earnings.
Time freedom
With a home-based business, you are free to schedule your time the way you choose. You are not subject to sit in various meetings at the office or required to perform your work within specific hours of operation. You can work early in the morning, late at night, while your children are at school, or during any other specific windows of time that work best for your family life and schedule.
People who could not find time to exercise or eat well can now take advantage of their new time freedom to take better care of themselves.
Many people spend many hours each week, month, and year commuting by foot, car, bus, train, and plane to work. The time spent commuting equals lost time away from one's family, hobbies, or exercise routine and can greatly impact relationships, health, and stress levels. Time formerly spent in your car commuting to an office can be spent in other productive ways. Additionally, with fewer cars on the road, the world can appreciate a healthier environment with less air pollution. People will also spend less money on gas, car maintenance, and auto insurance.
Variety of work
When you are the boss, you can choose your projects based on your interests and the needs of your business. You are no longer hindered by the parameters of your job title or job description. In fact, as a business owner you will need to have a basic knowledge about or access to resources to assist with a variety of topics including marketing and advertising, billing, and accounting.
Quality of life
One of the major reasons repeated by entrepreneurs who started a home-based business is that they were looking to create a rewarding lifestyle. The term "quality of life" has different meanings for different people. However, most people would agree that quality of life includes the ability to have time freedom and financial peace to pursue one's interests—whether that be spending time with others in meaningful relationships, enjoying recreation and hobbies, participating in health and exercise programs, creating a balanced work/life schedule, and reducing stress from the pressures of working in a traditional job with office politics, little room for advancement, or no job security.
One of the biggest advantages why people prefer a home-based business is that they are able to spend more quality-time with people who are the most important in their lives. For example, parents who are home-based business owners are no longer restricted from attending important appointments, going on their children's field trips or missing games, scheduling a vacation, or being scrutinized for taking time off to care for a sick child or other family member.
Security
The security of your home-based business depends greatly on the industry, or niche within a specific industry. In this economy, many are experiencing layoffs, company downsizing, a reduction in benefits or no raises or bonuses, and outsourcing. You will have the ability to continue growing your home-based business based on the number of hours you work and the amount of work you can accomplish.
Many new home-based business owners have the option to work full-time at their current jobs while building their businesses. When the home-based business starts generating a bigger income, entrepreneurs are able to leave their full-time position completely or take a part-time position.
Low startup costs, overhead, and home office tax deductions
Whether you choose to start a home-based business from scratch or to become an independent contractor or consultant with a larger parent company, you will have lower start-up costs and lower monthly overhead than a "brick and mortar" business. Technology that was once only available to larger companies is now available to the average consumer.
Home-based business owners are also eligible for home office tax deductions. A few of these deductions include a portion of your rent or mortgage, internet costs, phone line, portion of utilities, business supplies, computers/software, gas/mileage, and postage. Most people have many of these expenses anyway just from running a household, but with a home-based business, you can legitimately write these expenses off on your taxes each year.
The reasons why people choose to start a home-based business are numerous. The major attraction seems to be the opportunity to have more control over one's life—to design a life, rather than be too busy making a living. Success in a home-based business is not an accident. Working at home is not easy. It takes knowledge and skills about your services or products, top notch customer service, an extremely high level of self-motivation to achieve the desired potential, and time. Successful home-based business owners do not give-up. They continue to find ways to achieve their goals to support the fundamental reasons why they started a business at home in the first place.
If you have a home-based business, what is the main reason why you started a home-based business? Please share your comments in the section below.
If you liked this article, here are other articles you might enjoy:
Spotlight on home-based business owners: Lessons from entrepreneurs
Establish your home-based business identity in seven steps
Personal growth, development, and continued learning: Why are they so important?
The link between personal and business growth and success
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Charmin Calamaris is a wife, mom of two little boys, entrepreneur, publisher and editorial director for The Momiverse—an online magazine for busy moms—and a writer for Examiner.com. Here she shares tips and experience about working from home as a way to earn more, maximize quality time in your relationships, and create a rewarding lifestyle. You can connect with Charmin in her "online office" on Twitter.
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