Deciding to start your own home business can be both scary and exhilarating. It’s important to realize what is at stake if you decide to quit your job and work from home. It isn’t something that you should take lightly.
Today we’ll discuss ways that you can minimize the risk in starting your own home business so you can thrive and finally be your own boss.
If you are thinking about leaving her job then you will find this information valuable. If you have already left your job and are working from home currently you also might find a few tips and tricks that will help you build a more profitable business.
One mistake that a lot of people make when leaving their job to pursue a home business is that they leave too early without having enough capital to live on. Even with the best intentions there is a high likelihood that you may not make enough money to live on for the first few months, working from home.
You will need a cash reserve and maybe even some credit to get your business started. It is recommended that you have at least six months worth of living expenses saved up in the bank before leaving your job. You will be surprised at how fast this money goes, so be sure to prepare beforehand.
Having a rocksolid business plan is essential before making the jump. If you have a great business idea then you should do your research to make sure that people will actually spend money on whatever you want to provide customers. Often times entrepreneurs think that customers will buy something, but in the end they don’t. And that can be frustrating and also disheartening.
Is also a good idea to invest in business training because most entrepreneurs don’t have formal business school experience. You should have a budget allocated for purchasing courses related to your business. Ongoing training and education is critical to maintaining an edge in your market.
Often times business owners have to wear many hats. They do customer service, they do the sales, and they run finances. However as you are business grows and you start to make more profit, it is a smart idea to look into hiring some help.
When you hire someone, you should consider if you want them as a full-time or a part-time employee. You might even consider hiring them as a contractor. Each of these scenarios has their own pros and cons. However the recent trend has been to hire people as contract workers since there are less taxes and overhead involved with contractors than with hiring a typical employee.
You might also want to consider networking in your local area to meet other business owners and become friends with them. These network meetings can provide greater exposure for your own business as well as potential partnerships that may come out of it.
These are just a few of the things that you should consider when you start your own home business. A little preparation can go a long ways.
The Benefits of a Home-Based Business
Many people in today’s society are opting to work from a home office. Continued increases in the cost of living, including rising gas prices, daycare costs and a desire to navigate away from the stresses of a busy workplace are all viable reasons people have for making this transition.
If you are considering taking the plunge, and opening a home business, here are some of the important advantages you will be able to enjoy.
Office Stress
Working out of the home can certainly cause stresses of its own. However, leaving behind corporate office stresses, such as answering to someone above you, deadlines, office politics and the fear of layoffs can lower your stress level, and eliminate many of the disadvantages of working in the outside business world.
Owning a Business of Your Own
There is a real satisfaction in owning your own business. You have only yourself to answer to. You make the decisions, create your own schedule and are able to spend some extra time with your family as well. You can make your business as small, or as large, as you want, and be your own boss.
Perks For Women
If you are a woman with children, it can be difficult to go back into the workforce, leaving a baby, or young child with a sitter, or a daycare facility. Not to mention the rising cost of daycare, which takes a major chunk out of your paycheck. Missing out on the joys of young motherhood is often enough to convince a woman to consider opening a small business at home.
Tax Deductions
If you are considering a home-based business, you may wary of the higher cost of self-employment tax, but if you are smart, and well-organized, you can maximize your tax deductions in order to offset your self-employment tax. For instance, many home business owners do not realize that their home office space can be written off at tax time. Whatever space in your owned, or rented home that is used exclusively for your business is allowable as a tax write-off. Other expenses that qualify include: utilities, such as electricity, telephone and heat. These can add up to significant savings.
Office Supplies and Furniture
If you are well-organized, you can write off your office supplies and office furniture. Keeping, and filing, every receipt for purchases you make, including paper, pens, staplers etc. can all add up to savings for you. Office furniture can be deducted at full cost during the year it is purchased, or depreciated over seven years.
Technology
You will most likely make use of a computer, printer, cell phone and other technology in your home business. As long as these items are used exclusively for your business, they can be written off as a tax deduction, and replaced as needed.
The advantages of owning a home-based business are many, as you can see. By hiring a good accountant, or tax preparer to guide you, you can maximize your savings, and give your business a real financial boost when tax season rolls around!