The number of home-based businesses has increased to more than 38 million households, according to Home Business Magazine and U.S. Census statistics in 2010. The unemployment rate in the U.S., according to MSNBC, rose from 4.7 percent to 9.4 percent between May 2007 and May 2009, but the Internet and rapidly advancing technology have made working from home more possible than ever. These factors, according to Home Business and "Businessweek" magazines, have contributed to the increase in home-based businesses. Whether you make jewelry, design websites or teach music lessons, successfully starting a home business is common and has several benefits.
You're the Boss
A perk that takes discipline and self-control, starting a business grants you flexibility of income, hours, coworkers and where in the house you work. Being the boss does, however, mean suffering if the business suffers and putting in long hours to ensure the financial success of the company. But the flexibility is unmatchable and an element that home business owners cherish. If you have kids, you can spend more time with the family while earning a living.
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.
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.
Starting a home business will be stressful at times, but it will be on your own terms and a different kind of stress. A lot of stress in the workplace comes from the pursuit of exceeding supervisors' expectations and trying to work well with others. But with your home business, you can focus on the healthy type of stress--working hard to achieve goals and earn a living without the politics of corporate advancement.