Have you ever wondered why most small businesses start out home based? It’s really a no-brainer and presently, most new businesses are embracing the home-based business model. It is more convenient, flexible and less capital intensive when you decide to start your business right from your home. This eliminates the extra expenses of buying or renting an office or a warehouse space. The benefits of starting a business at home are high, especially for a startup business. However, it is important to note that it will require discipline on the part of the business owner to make it work.
- More Time to Work in your Business.
The results from a recent Gallup poll shows that an average Americans spend about 50 minutes to commute from home to the office every day. One of the great benefits of working at home is that the time it takes to move from home to office is just a couple of minutes trek from the living room to the garage or basement as the case may be. This gives the business owner more time to attend to important business issues.
- The Ability to Scale Up or Downsize Quickly
When a business owner rents an office space, the size of the business is fixed regarding space. Expansion or downsizing will require additional funds to secure new office space. Moreover, with a long-term lease agreement in place, it becomes a more complicated issue. Working from your home gives you the flexibility to expand or downsize, hire more or less staff (or even a remote team) and work longer or fewer hours at your discretion.
- Flexibility of Working Hours
The ability to work in the early hours of the morning is a unique advantage for entrepreneurs with children and other time-consuming obligations. The technology advancement in the use of mobile devices and emails makes it easy to get in touch with business leads and customers any time of the day or night. This allows you to adjust your schedule to be in tandem with the time zones of different customers all over the world and also accommodate your children’s school routine.
- Minimize in Overhead Costs
Overhead costs are the additional cost incurred in running a business that is not directly associated with the sales of goods and services. In includes costs such as rental, and utility bills among others. Using a home-based office removes the cost of rents, transportation to and from the place of work, power, and other utility bills. This reduction in overhead cost can be applied in gaining a price advantage over competitors and make your business more profitable.
- Test Out New Business Ideas with Minimal Risk
It is estimated that about 50% of all startup businesses end up failing. Putting money out for rent and another fixed cost right from the onset of a business will make a startup failure more devastating. To work at home creates an avenue to test new businesses without the risks of monstrous overhead costs. This allows an entrepreneur to make an appraisal of the viability of a business before committing more capital to it.
The Bottom Line
By starting a business at home, you have the advantage of the flexibility to grow your business without stress at your own pace. You can save a lot of money from the inception of your business when you have little or no capital to play around with. Bear in mind that your working environment can determine your success as an entrepreneur.