The thought of running a business out of your own home is appealing to some entrepreneurs, while others may think differently of this type of business environment.

For many entrepreneurs starting your business from a home office is the best utilisation of your initial funds. It is very important to weigh up what works best for you as the cost savings can be quickly offset by the disadvantages especially if your business entails continuous face to face meetings or production related activities. Many people are also simply not suited the interruptions, distractions and non productive temptations that come from working at home.

Here are some advantages and disadvantages of operating a home-based business. Weigh your options carefully!

Advantages of Operating a Home Based Business:

– good starting base

– can ease into business life and environment at your own pace

– lower risk (financial)

– can achieve work-life balance easier

– increased productivity if disciplined

– in some circumstances, can take care of children at the same time running the business

– no commuting

– less overhead costs

– tax advantages

– flexible work shifts and work hours

– easy access to work space

– easy to customize work space

– use of existing resources such as phone lines, internet, utilities

– taking breaks and lunch hour in your own home

– privacy from commercial tenants, clients and competition

– easy access to home gym and amenities

– ability to utilize family members in operations

Disadvantages of Operating a Home Based Business:

– too much interference from family

– work-life balance unbalanced towards life, family and home issues

– inability to concentrate on operations and management

– requires real discipline to be fully productive

– lack of professional space

– noise

– lack of privacy

– inadequate space, and inability to expand office space

– lack of brand visibility

– Can become lonely and isolated especially after busy corporate offices

– customers can’t gain easy access

– can appear unprofessional

– lack of technology

– some types of businesses can’t be done from home (ie: manufacturing)

– additional wear and tear of a family home

– additional insurance costs

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