Personal freedom.

If you’re used to spending hours in traffic to and from work every

day, some of the most exciting advantages to starting a home-based business are your
newfound freedom and the retrieval of lost time. The average American spends 348 hours
each year commuting, according to the U.S. Federal Highway Administration. Suddenly
with a home-based business, you have those extra hours to regain control of your
personal life. Plus, there are no bosses, no dress code, no set work schedule, and no office
politics to maneuver. All you need is personal drive, discipline, and time-management
skills.

You get to keep the money you make. It’s a simple principle: the harder you work, the
more money you can make. Your earning potential is directly proportional to your
performance, so you don’t have to wait for a raise or a promotion. You work harder, and
you produce more. You’ll also save money on gas and food. Preparing lunch at home is
more cost efficient and offers a nice break in your workday.

Increased opportunity. With so many corporations and industries in a slump, starting

your own home-based enterprise means you can create your own income-producing
opportunities. Good job prospects can be scarce in some industries, and promotional
opportunities within major companies are also shrinking.

Less risk. Running a business from home takes much less startup cash than a
freestanding business, or even a franchise location. And once your business is up and
running, it’s cheaper and easier to maintain than a separate business location.

Tax advantages. There are a number of tax advantages to having your home and office
under one roof. You can deduct a part of your home’s operating and depreciation
expenses on your home as business expenses. This can be a percentage of your mortgage,
property taxes, insurance, utilities, and/or the expenses of household maintenance.

More time for friends and family. This is especially important for parents of school-age
children: you can see the kids off to school and on most days be home when they return.
Also, if someone is sick, it’s easier to leave your home’s desk than one in someone else’s
office.

Less stress. It’s a little less stressful to juggle the demands of work and family when you
know you can stay home to care for a sick child and generally set your own schedule.

Opportunities for professional growth. Being your own boss gives you the chance to
wear a lot of hats: sales director, marketing professional, strategist, business development
manager, and more. This gives you insight into and experience with all the aspects of
running a business, which, in turn, makes you even more marketable.
Increased productivity. Now that you no longer have to budget time and energy for
commuting or a succession of useless meetings, you should have a lot more time and
energy to make your business a success.

A creative outlet. Launching your home-based can be an opportunity for you to give
birth to your passions and hobbies and create a money-generating outlet for your unique
and creative talents.

Work-life balance.
Getting a company off the ground can take a great deal of work, and it can also require
you to put in a lot of time. When you have a business away from home, doing this can
take time away from your family, friends, or other important relationships. However,
when you work directly from home, you can have a better work-life balance. You’ll be
able to remain close to your family and still make time for things such as baseball games.
This can be a great way to reap the rewards of owning a business and keeping your
relationships healthy.

4. Flexibility
Aside from getting control, a great benefit of home-based business is the flexibility it
offers. Not only can you choose when to work but you can also decide where to work.
You don’t need to confine yourself in an office cubicle; you can be on a cruise, by the
beach with your sunscreen on, or in a plane and still be able to work on the projects you
took.

5. Cost Savings
There are a ton of cost-savings that you can get from running a home-based business that
I probably can’t list them all here. Nonetheless, here are a few of them:

Utility bills (electricity, water, phone using cloud based phone systems like Ringcentral
or Grasshopper)/Office space/Gas and/or fare/Production equipment and
materials/Tax/Clothing

Starting a business can be tough, but with a home-based business, the process becomes
simpler, the risks fewer, and the expenses lower.
2. The Ability to Scale Up or Scale Down Quickly

When you rent or own office space, the size of your business is fixed to the size of the
space. In the event where downsizing makes sense, you may not be able to do so quickly
if you are signed to a long-term lease. Working from your home allows you to hire more
people or fewer people, or simply work longer or shorter hours to right-size your business
operations.

3. Deduction of Home Costs on Income Taxes

The tax benefits of operating a home office can be lucrative. If your situation qualifies,
you can deduct a portion of your home's expenses, such as mortgage interest, property
taxes, utilities and repairs and maintenance, against your business income. To qualify,
your home office must be your principal place of business and you can only deduct the
proportionate amounts of the total expense which are directly related to your business.
Although you cannot create a loss with your home office expenses, you can carry them
forward to future tax years if you do not have enough business income to use them up in
the current year. (Running your own business has both personal and financial perks.
Check out 10 Tax Benefits For The Self-Employed.)

4. Flexibility of Working Hours

Being able to work at night or first thing in the morning is a great boon for those
entrepreneurs who are juggling children or other obligations. Mobile phones, faxes and
email allow you to interact with your customers and suppliers at any time of the day or
night. You can more easily accommodate customers in different time zones and kids'
school schedules.

5. Reduction in Overhead Costs

Working from a home-based office keeps your overhead costs low as you are not renting
office space or phones or paying for office utilities. The zero commute also saves money
on gas and wear and tear on your car. The reduction in fixed costs allows you to be more
flexible in your pricing decisions than competitors who must cover those types of costs.
You can choose to either give more favorable quotes or keep the same pricing as your
competition and have a healthier bottom line.

6. Allows You to Test Out Business Ideas

More than 50% of all new businesses fail. If you have had to put money out for office
space and other fixed costs right off the bat, a start-up failure can be costly. Working
from a home office allows you to test out a new business without a lot of overhead. This
way, you can determine its viability before investing a lot of money.

Low Risk
Starting a home business carries little risk--financially and beyond. Your overhead costs
will be minimal, limited to computers, which you probably already have; business phones
or your personal cell phones; and other applicable materials, such as fabric for a craft
company. Working where you sleep adds a big chunk of change back into your budget
and, if you have an adequate savings account, you can probably survive during start-up
without having to sacrifice too much.

Taxes
Running a business out of your home has tax advantages, allowing you to write off part
of the depreciation of your house, property tax, operating expenses, bills, health insurance
and use of your car for business purposes, according to Power Home Biz. Consult your
accountant before assuming you can write something off. For example, to qualify for the
home office deduction, your home office must be used exclusively for work, according to
Accounting and Bookkeeping Tips. Certain rules and regulations--like this one--exist to
keep people honest.