Starting a home based business is a good idea for lots of reasons, that said, its not for everyone. I was talking with a friend earlier today and I thought it would be a smart idea to write a post on the the top reasons to start a home based business.
These are three reasons that are great reasons to start a business from home for anyone.
Use otherwise unproductive time.
The tax advantages of starting a home based business vary, you should consult your tax attorney or at least accountant to get the final word. I’m no accountant, but have worked with accountants for years and owning your own business has advantages. Starting a business for the tax advantages alone makes sense for some people.
My friend is a single male in his mid thirties who makes around 85k per year. He sold his condo last year and really has no good write offs or exemptions. He pays around 20k per year in income tax most of which is taken out of his teaching salary paycheck.
He started a business from home of sorts. He is a subcontractor really receiving income via 1099 for serving court orders to people…Fun, fun!
This year he will have many more write offs than last and therefore will “maybe” get a refund!
Things like mileage, home office exemption, car payments, expenses on the road, personal computer, phone, and more can all be written off this year.
Big advantage as it lowers his net income and thus his tax responsibility.
Making money is another great reason for starting a home business. Many home based business ideas don’t cost much at all to start and many can be started with no initial capital at all! My experience shows that when I just start something, I can find a way to make money with it. Having more than one stream of income is a really smart strategy for personal finance.
Statistics say the average American watches like 4.5 hours of TV per day! Get off the couch and start a small business from home. Its much more fulfilling than you might think. Home based business ideas can be successful with much less than the same amount of time spent, trust me.
Why Start a Home Based Business?
The bottom line, and I’m speaking to the employee who feels underpaid, unfulfilled and under appreciated, you can out earn the average job ($34k yr) if you start a business today and continue to persist and learn for the next three years. And if you do it right, you’ll get paid whether you go to work or not. A solid blog network for instance, while requiring a significant amount of time and work to start up, can be manages in well under 10 hours per week and can really bring in cash in a profitable niche.