Wednesday, August 4, 2010

6 Reasons To Start Your Own Home Based Business

Here are six advantages of a home based business.

1. Financial Security. As of the end of 2008, it was clear that the world was in a financial recession. Financial security, even for those who felt secure, was greatly shaken. Many are in debt. Many have lost their jobs; clearly there is no such thing as job security. The great dream of baby boomer retirement has evaporated for many. Having one's own business helps provide another source of income; however, depending on the nature of the business, there may be no security in that either. Still, having several sources of income makes more sense that relying on one thing. In addition, instead of trading your time for wages or a salary, a successful business can be like an investment that brings continuous income whether you are working that month or not (called "residual income").

A U.S. Federal Reserve Study shows that the average household net worth for self-employed persons is five times that of traditionally employed positions. Note:

Employed $268,500
Self-Employed $1,423,200

2. Pick your Passion. You get to do the work you enjoy and / or believe in. Instead of feeling "stuck" in a job, you get to feel "satisfied" with your accomplishments and contributions. For some, it is the opportunity to be in the "people helping business" they always wanted.

3. Family Values. Since you can set your own hours, you can: be home when the kids get home, volunteer for field trips, have dinner together as a family, include the kids in your business, vacation when you want to,... in short spend your time in a way that you feel benefits your family. [More on this!]

4. Tax Incentives. Many of the things you have to pay for anyway become business expenses to reduce your overall tax liability- for example: a portion of your rent or mortgage, a portion of your utilities, travel, certain magazines, office equipment (new computer?), bank fee... and much more.

5. Personal Growth. It can be the opportunity to grow in areas such as communication, leadership, and time management skills.

6. Fun. Like to travel? Make new friends? Have time to enjoy old friends? Take more vacations? Create your own schedule? Be spontaneous? Have more money for your home hobby? Enjoy more time with your family? A successful business can facilitate all of these things.