A number of years ago, my financial advisor told me that I needed to have a home-based business. At the time, I was an employee for a company and my income placed me in a high tax bracket. In order to reduce the amount of taxes I paid every year, his advice was to have a home-based business which allowed me certain tax deductions that I otherwise would not have. So I took his advice and never regretted it.
But having a home-based business is so much more than just reaping some tax benefits. So let’s look at the top 5 reasons.
1. It’s something you want to do. Life is short and we spend a lot of time working for others. That means working towards their goals, not yours. Furthermore, it’s their passion not yours. A home-based business that you have selected, is something you want to do, that motivates you to grow the business and succeed at. It allows you to set your own goals and objectives. You are the CEO of your home-based business. You are accountable to yourself.
2. It’s a great working environment. Are you tired of getting up early and driving to work every morning? Are you limited by the number of days you are allowed for vacation each year? Are you disappointed when you can’t get time off to attend a special event for your family? Do you hate your job? Then why not a home-based business where you can work from home, control your calendar/hours, and determine your work schedule, while at the same time giving you the flexibility you want in your life. It will also result in reduced costs.
3. The tax benefits. I already mentioned that there are additional tax benefits from starting a home-based business that you normally would not have. This includes deductions for home office space, heating, automobile, equipment, travel and training. Your accountant can advise you on what you are allowed to deduct.
4. Low start-up and overhead costs. Because you are starting a home-based business, the costs of a traditional business model are avoided. These include office space, additional staff, purchasing a lot of inventory and so on. Consequently, the return on investment for a traditional business can be years. The home-based business should result in a quicker return on investment due to lower operating costs. I’ve included a comparison here that is taken from my book called Creating Freedom.
5. The road to freedom. Starting a home-based business is one option to change your life and give you the freedom you want. It can grow to the point where you can quit your “day job” and do the home-based business full time. Properly selected, the home-based business can be transportable, moving with you wherever you go. This is extremely important today, when so many of us are on the move with our current careers. For me, being a spouse of an air force officer, this is the perfect way to have a portable business that I could run from anywhere in the world.
Starting a business is certainly the way to go, and having a home-based business has advantages over a traditional business model as shown below. But nevertheless, starting a business and being an entrepreneur will change your life forever and give you a positive, rewarding and enriched experience.
Are you feeling tied to your cubicle? Are you overworked and underpaid? Are you frustrated and don’t know where to turn? Well, here’s the thing…life is short, so it’s time to take action. Start a home-based business now and who knows where it will lead you. If you want suggestions on the best home-based business to venture into, feel free to contact me.