Advantages and Disadvantages of a Home-Based Business
The trend toward home-based business has occurred for several reasons. From the beginning,
the electronic revolution, with its computers, fax machines, copiers, and generally faster, better,
smaller and cheaper office technology has made it possible for almost every family to start a
business from home. Job insecurities and lay-offs have forced white-collar workers out of
corporations. Many of these displaced middle managers have translated their skills into viable
businesses run from their home offices. The trend toward home-based business has also been
fueled by economic considerations such as eliminating rent and utilizing other home-office
deductions. As an additional bonus, having a home-based business has allowed parents to stay
home with their families and address elder care and parental leave without added costs. Home-
based businesses are popular because they can be very successful. They can also turn into
disasters or, at the very least, become unproductive or half-hearted efforts. Here are several
advantages and disadvantages of a home-based business. See if the advantages of basing
your new business in your home outweigh the disadvantages.
• Address domestic responsibility: I would be free to care for children, parents, and
• Control over work hours: If I don't feel that I have time in my life for another client, I
can say no. I can cut back during the summers, and work longer hours during the
• Convenience: I would have all the aspects of my life - work, family, social -
consolidated in one place.
• Decreased commuting time: I'd be able to really use the time I now spend traveling
from home to work and back.
• Flexible hours and pace: If I wanted to put in my hours late at night or early in the
morning, I'd be able to do it.
Independence: I'd not only be my own boss, I'd be my own landlord.
• Lack of workplace distractions: It seems like I