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Many very
successful businesses started out as home businesses.
Michael
Dell, for example, launched his computer empire from a
dorm room, and Hewlett-Packard famously got started out of
a
garage.
But many
other business people choose to acquire office space before
launching, and find that the extra steps associated with finding
a separate office are worth it for them.
What´s
right for you? There´s
no one answer, but wholly aside from the issues connected
to any business start up, there are special issues associated
with starting a business in your home. Consider
these issues before you make the leap.
Benefits
of a Work At Home Business:
- A
home business can cost very little to set up. You don´t
need to incur out of pocket outlays for rent, furniture
or duplicative office equipment.
- It
can cost very little to operate. Odds are, you plan to heat
your home and keep phone service whether or not you start
a home business.
- Your
commute can be very short - perhaps cross-bedroom
instead of cross-town.
- Even
when you are very busy, you will be near your family
more, allowing you to share in their lives more than if
you were off at an office.
- Depending
on the business you are in, you might be able to
work anywhere in the world.
- You
can set your own schedule, getting work done when it
suits you instead of when the office doors are open.
- In
some circumstances, it may be both possible and desirable
to take extra tax deductions based on using part of your
home for an office.
- If
it really, really matters to you, you can work in your underwear.
Negatives
of a Work At Home Business
- Your
home is set up for living, not working, and distractions
abound - family, television, and household duties, just
for starters.
- Do
you really want employees showing up to work at your
home? Do potential employees really want to come to your
house to work?
- Suppliers
and customers may be reluctant to come to your
home to do business. (Hint: don´t tell them how cool
you thought the hidden basement dungeon was in Silence of
the Lambs.)
- You
will have to take extra measures to make your home based
business appear professional, and not like a hobby or wannabe
effort.
- The
ease of set up can cause you to skip important pre-launch
steps - such as thinking through the proper legal form,
acquiring insurance or creating a basic business plan -
that can come back to haunt you later.
- Both
living and working in the same space can create a sense
of claustrophobia if you don´t find ways to get out
into the community.
- Your
family may resent your business more when it is home based,
because it is always around and competing for your time.
- Depending
on the business and how visible it is, you can run into
zoning and/or neighbor relations issues.
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