Starting a Home Business? Pros and Cons

You want to start a home business? Considering the state of the economy you may be wondering if it is a good move right now.  Here are some reasons why it would be great and not-so-great to take advantage of that home business opportunity you are thinking about:

Pros:

• It can provide you with independence.  You can be your own boss.  It is the reason most people give for starting a home business.
• You can set your own time-table.  You can take care of a family while working, and still have time for the soccer games and school field trips.
• You can use your experience to make money for yourself, instead of some other company.  Working for someone else, you don’t get the satisfaction of the direct result of your talents and experience; someone else profits.
• You can write off legitimate expenses, like your home office (doing this under the direction of a tax adviser), set up a business health care and retirement plan for yourself.

Cons:

• A home business will take a lot of your time.  You may end up working many more hours than you intended, especially during the start-up phase.  Make sure you have your family’s support before you start.
• The business will also take more of your money than you thought it would. Even if you don’t need outside funds, you will be draining your cash pretty quickly.
• Finding space is difficult.  You may end up working on your dining room table, or the back of the garage.  It’s difficult to keep things organized in this environment.
• People tend to take advantage of you.  When you are working in an office, people expect that you are busy, and don’t bother you. At home, there are constant interruptions – phone, family – and you have to be tough and say “no.”  If you can’t do that, your business won’t grow as fast.

Both sides of the coin. As usual, the positive benefits of a home business, and the drawbacks, are two sides of the same coin.  For most home business owners, the benefits still outweigh the drawbacks. What other pros and cons do you have?

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