Running a business is a great way to be independent and create something you’re proud of. However, many people are intimidated by the cost of renting commercial space and opt to continue other types of work. There is another option to consider: home-based businesses. Here are five advantages of running your business from home.
1) Cut Back on Transportation Fees
When you work at home, you no longer have to worry about commuting costs as your home office is only a few steps away. People often underestimate the real price of owning a car, but the cost of wear and maintenance will drop dramatically if you’re not commuting to your office every weekday. You’ll also save a considerable amount of time by cutting out your daily commute.
2) Tax Benefits
When running a home business, you’ll be able to write off business expenses. Items you purchase for your business are deductible on your taxes, potentially saving you and your family a considerable amount of money when tax time comes around. The space itself can even be written off, which helps cut back on the cost of owning or renting your home. However, it’s important to ensure you’re only using your home office for business purposes. Check with an attorney if you’re unsure about relevant laws.
3) Set Your Own Dress Code
One of the costs of typical jobs is maintaining your wardrobe. Office clothing can be expensive, and the cost of your wardrobe might be more than you think. When you work at home, you set your own dress code. While some people prefer wearing business attire to get in a productive frame of mind, others prefer casual clothing. Avoiding the cost of dry cleaning can help you save a significant amount of money and time.
4) Work When You’re Most Productive
Some people work best in the morning, while others feel most product in the afternoon and evening. Running a home business means you can set your own hours. If sleeping in a bit longer leads to better productivity, feel free to shift your schedule forward a few hours. If your best work comes early in the day, enjoy finish your work earlier and having more time in the evening. Remember that working from home means you don’t have a commute to worry about when scheduling your week.
5) Save on Rent
Commercial real estate is expensive to rent or purchase, and running a business means covering these expenses. Working out of your house lets you potentially save thousands of dollars every month, giving you more capital to invest in growth. The early days of running a business are generally the most difficult, and these savings can be the difference between surviving and failing.
The freedom that comes with running a business is wonderful, but the cost of renting space can make you feel trapped. If possible, consider setting up a home office and using it as a base of operations to reap significant financial benefits.
William Doonan is a tax law and legal expert in Bronx, NY.