The Pros And Cons Of Starting A Home Business
Starting a home business is ideal for many people
, but it is not for everybody. While some enjoy the benefit of increased income and extra time with their family, others constantly fight off depression and yearn for the "team" feeling of corporate life.Some personality types are better suited to home businesses than others. And some types of businesses are better suited to a brick-and-mortar location rather than a virtual one. If you are thinking about starting a home business, you should be aware of the pros and cons associated with owning a home businesses before you leap.
Taxes
Many people think that owning a home business results in huge tax breaks. Think again. Self employment taxes are double what you would expect to pay when working for someone else. This is because employers contribute money to help pay for your social security tax. When you work for yourself, there is no one else to pitch in.
The deductions that you receive help out a little, but they are not quite as huge as some believe. You can deduct a percentage of expenses such as your phone, electricity, gas and home repairs if you have a room dedicated solely as a home office. Internet and phone can be deducted only if you have a separate line for business. All in all, taxes are a con when it comes to owning a home business.
Freedom
Being your own boss has many rewards. You can be there for your family on every occasion. If something comes up, you can drop your work. With most home businesses, you can work anywhere there is an internet connection. It's very possible that your "office" could change locations whenever you feel the urge. Beach anyone? Freedom is definitely a pro when it comes to working from home.
Financial Stability
People who work from home often make more than their employed counterparts. Even after expenses are deducted for taxes, health insurance and non-matched retirement plans, people who own home businesses often come out ahead.
Additionally, there are opportunities to increase income when the need arises by taking on more work or raising your fees. When you are an employee, you are often locked into working the hours that are available and raises are few and far between. The money makes working from home a smart idea.
Seclusion
The internet has made it possible to do business without ever leaving your home or meeting with clients. In most cases, all correspondence can be performed via email or chat boxes.
This set up can be ideal for people who like to stay home and work alone day in and day out. For others, however, working solo is a nightmare. Working in seclusion can be a benefit for some people and a drawback for others.
In addition to these, there are many other things that you should consider before starting a home business. Be sure to do a lot of research and know exactly what you are getting into before you take the plunge.
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