Is a Home Based Business Right for You?
More and more retirees are deciding to find a retirement career or start a home-based business. Many individuals have created very successful retirement companies from their own home. However, the process takes a while, and the decision should not be taken lightly.
You have to devote a significant amount of your time, money and energy into ensuring the business succeeds. A little patience is also necessary; studies reveal that almost 70 percent of new home businesses take up to 2 years to become fully operational. With patience and effort, a home based business is a great way to supplement retirees’ income. We’re going to discuss some of the advantages and disadvantages of running a home business. Hopefully, they will help you decide if this is right path for you!
Another advantage to running a home-based business is the lower start-up costs. You generally have to invest much less in this type of small business because of the lower overhead. This is an important consideration to minimize retirement costs. Ultimately, a home based business can result in higher profits. It may even represent the difference of being able to start a new business or not, depending on your financial situation.
A home-based business will also give you the freedom to make your own choices. As your own boss, you can implement your creative ideas and decide how to run your business.
Home-based businesses also have many disadvantages which you need to carefully consider. For example, zoning restrictions in your area may not even permit you to run a business from your home. This may be true of 55 retirement communities. If this isn’t the case, you have to ensure you have adequate space in your residence to accommodate parking, client visits, office equipment and the storage of business records or inventory.
You may face problems or intense scrutiny when it comes to tax time. The IRS will most likely have lots of questions if you run a home business so make sure you keep detailed records.
Another common problem shared by home business owners is the inability to separate their personal life from their business. You may find yourself dealing with loud children or answering personal phone calls while trying to run your business. Many people also find it difficult to establish set working schedules. This can cause your work life to spill over to your personal life and lead to burnout, tension and stress.
Marketing can also be harder for home-based business owners. You need to find creative and effective ways to promote your business. Locating viable distributors and marketers can be more difficult when you run a small business from your home.