Home Based Business Advice

Benefits of a Home-Based Business

With the advanced connectivity available through media via iPhones, tablets, laptops,
television, and other applications, more people are creating a livelihood by working from their
own home. Many of us may be so ingrained in the notion of being employed and reporting
work at a fixed location that we don’t realize the many benefits of self-employment in a home-
based endeavor.

Test Drive Your Business.
One of the most beneficial things about a home-based business is that it will allow you to try
your business concepts before investing in a workspace. While traditional, these expenses are
not necessary if you are careful. According to Chron.com, businesses should spend about 5% to
10% of their profit on a workspace. Anything more than that will cause the business to financially
plateau and no real progress can be made.
Low initial income and high overhead can kill a business venture which could otherwise be
viable. Another benefit of the test drive is that you can transition from an employment situation
to self-employment. Again, you have the opportunity to see if the business is sustainable before
quitting your current job.

The flexibility of being self-employed is unrivaled. When you can set your own hours or deal
with personal matters when it is best for you takes a lot of stress out of your life. When you
throw in the advantage of working from home, you maximize your total flexibility. You can work
at night, or off and on throughout the day if you so desire.

Productivity can be enhanced or diminished in a home-based business. It takes self-discipline to
work at home. Meeting production requirements can be challenging, but if you have the
necessary discipline you will be able to increase production significantly. The ability to work 24
hour days if you so wish speaks well for productivity.

The Tax Benefit
Using your home as your primary business location carries a tax benefit. Federal income tax
regulations create a reduction in business income tax for the cost of that portion of your house. A
percentage of your mortgage interest, property taxes, utilities and maintenance costs can offset
business income. This deduction cannot result in a business loss, but unused amounts can be
carried over to subsequent years. There are certain requirements that must be met for a home
office deduction, so it is important to make sure your situation qualifies before claiming the
deduction. See our newsletter next month for details.

While being a successful business owner operating out of your own home, you don’t want to get caught
up in all of this legal mumbo-jumbo! Lucky for you, we have created something called the Access Plan,
which helps business owners protect their legacy. We can schedule a free Shatterproof Session to get
you jump started!