This is Greg Ray again from Savings Highway Global Success.
As you consider starting your own home business, you might want to take a look at these benefits of business ownership:
Convenience
The first thing to consider is the convenience… especially for families with dual incomes and small children. By the time you figure in child care expenses, many times the net income of a working mom is not that great. It is quite easy for a working mom to replace the additional income they earn from their day job, and become a “Work At Home Mom”. Another thing to consider is the time spent commuting to and from work. Instead, the business owner can stay at home and spend more time with children or managing the different aspects of their business.
Financial Risk
The next thing to consider is the financial risk of starting a business enterprise. Conventional “brick and mortar” business startups require an extreme amount of startup capital… and 95% of those businesses fail within the first five years. I had a close friend that invested thousands with his new “cabinet shop” business… and then lost it all when his business failed.
On the other hand, most home business startups require a minimal amount of money. Owners can begin part time, keeping their current paycheck intact until they reach the point when they can give up their “day job” without financial risk or strain. Because of this, it is considerably less risky to start a business at home than most other business models.
Tax Benefits
Home business owners also receive substantial home office tax write-offs. Deductions include such expenses as utility costs, real estate taxes, vehicle mileage, mortgage interest, insurance, and even home repairs and improvements.
Federal guidelines stipulate that the home must be the primary place of business and separated from the living area. You could use a spare room, or even just a corner of a room designated as the business location… for example, a desk with a phone and computer. You might also have a set of shelves to store products or marketing materials.
The average total tax savings through owning your own home-based business is $3,000 per year.
Take some time… do some research… you’ll probably come to the conclusion that starting up your own home-based business makes a lot of sense.
In our next step we will look at the pro’s and con’s of owning a home-based business… just click the “Next” button below:
