Running a business from home can be the best option for start-ups and entrepreneurs. And it comes with some big benefits for both business owners and their communities.

Impact of Home-based Businesses

According to the U.S. Small Business Administration, there are roughly 31.7 million small businesses in the United States, and about half of them are home-based. Small businesses and home-run businesses make a massive impact on the economy and the local communities they operate in. From 2019 to 2020, the number of people working from home (even if they weren’t running their own business) doubled. Home-based businesses are about 2/3rds more likely to be owned and run by female entrepreneurs. Plus, home-based businesses create the opportunity for those with disabilities to have more access to start their journey as entrepreneurs.

The option of running your business from home also allows for more niche businesses to grow and become established before needing to branch out into a larger space.

Benefits of Running a Business from Home

There are lots of general benefits of running a business from home, including:

  • No commute: you’re working in your home, so your workspace may be down a flight of stairs or in the next room.
  • Lower start-up costs: home-based businesses typically have lower start-up costs than businesses that start out in a brick-and-mortar office space. You’ll still have some costs – such as for equipment, supplies, and marketing.
  • Flexible schedule: since your commute won’t be an issue, you’ll have more time around work to be with your family or enjoy hobbies.
  • Potential to expand: If you don’t have a lot of financial capital to start your business, beginning as a home-based business is a great start. Once you’ve developed a loyal customer base and have sustainable profits, it can be easier to grow and expand.

Beyond those benefits, you might find benefits that are personal to you and your life. Maybe the flexible schedule allows you to spend more time traveling. Or running a business from home allows you to have a bit less stress, not having to worry about a physical location outside of your home. Working from home could allow for less workplace drama – keeping your mind clear as you grow your business.

Things to Consider

Like with any business – running a business from home isn’t all sunshine and roses. There can be some drawbacks and things to consider before embarking on your business startup.

  • Space in your home. You might have a hard time separating a workspace from the rest of your home. Having a dedicated workspace can improve your focus and allow for you to keep work from encroaching into the rest of your left. It can be hard as it is as a small business owner to keep work from seeping into all parts of your life.
  • Running a business from home can very much be lonely. Especially if you’re the only employee. If you enjoy working around others – working in coffee shops or in a co-working space a few days a week could help with those feelings.
  • Lack of foot-traffic. Running your business from home means that you don’t get foot traffic and drop in customers like you would in a brick-and-mortar storefront. You’ll need to put more effort into marketing to increase brand awareness.
  • Legal considerations. Depending on the state or local government regulations you may have limited options as to what businesses you are allowed to run out of your home. More options may be available, but you’d need licenses to operate. It’s best to consult with legal advice for your specific needs.

Every business is different – and there could be other things to weigh if you are thinking of running a business from home. Some good resources can be found on the U.S. Chamber of Commerce site and on the Small Business Administration’s website.

Have the Right Experts to Lean on

Being your own boss is fantastic – but as a small business owner, you are responsible for a lot. Working with the right team of experts can save you headaches and time. Some to consider finding are:

  • An accountant, and possibly a bookkeeper.
  • Lawyer or legal consultant.
  • A mentor – be it in your specific field or who has an established small business.

There could be other experts you lean on for your specific field, but make sure whoever you work with understands the complexities of home-based small businesses. These experts can help guide you as you grow your business and navigate the world of being a business owner.

Want to learn more?

There are a lot of resources out there to educate yourself as you run your business. The SBA and the U.S. Chamber of Commerce both offer great online resources to help you navigate starting your business. If you need more specific insights into your business, our expert team can help. You can reach out via email or phone at (703) 912-7862, or schedule a meeting with us.