A new home-based business is created every 12 seconds in the United States, according to Businessforhome.org. And research shows that almost 10 percent of all workers worked from home as of 2010, according to the Survey of Income and Program Participation.
So why are home-based businesses becoming so popular? There are several reasons.
Smaller financial commitment than conventional small businesses
Home-based businesses offer people many of the same benefits as a traditional small business. These include being their own boss, doing what they love and setting their own schedule. But a home-based business also spares these business owners from the costly overhead associated with capital expenses. Home-based business owners don’t have to rent commercial space or pay utility bills on a storefront. In fact, 44 percent of all home-based businesses were started for less than $5,000, according to Businessforhome.org.
A home-based business allows the owner to enjoy more flexible hours than someone in the corporate world or with a storefront. Because home-based business owners are not expected to sit at their desk for a set eight hours a day, they are usually able to work when it is convenient for them.
Goodbye to the rulebook
People who start a home-based business don’t have to worry about dress codes, arrival times or lunch periods as much. They are often able to set their own rules as they see fit.
Increased earning potential
Because the home-based business owner’s income is dependent on the growth of the business instead of a predetermined salary, home-based business owners have the potential to earn more money than they may in the conventional corporate world. This can create more satisfaction because the business owner is more likely to reap the benefits of success. In addition, many home-based business owners are also stay-at-home parents. This can allow them to reduce or eliminate daycare expenses, which preserves even more of their income.
In addition to being their own boss, many home-based business owners cite a reduction in stress as one of the biggest perks of having their own home-based business. Stressors such as the daily commute in rush-hour traffic and difficult coworkers aren’t as common for home-based business owners.
Away from the corporate politics
One of the benefits many people have found in owning a home-based business is that they have no one to impress except their customers. They no longer have to worry about trying to climb the corporate ladder or what their coworkers think of them. They are able to focus solely on the work they do and not on how that work is viewed by a chain of command.
Next, learn about which businesses are ideal to operate out of your home.