Home Business 101 – Advantages and Disadvantages of Working at Home
Working from home has many advantages – and, just about as many disadvantages. This article, the sixth in the series on working from home, explores those advantages and disadvantages.ADVANTAGES Of Working At Home:Flexible Work Schedule – subject only to communication needs with people in different time zones, you can work just about when you want to, or when schedule permits.Short Commute – from your bedroom to wherever your home workplace is going to be. And think of the reduction in commuting costs – you save money as well as time.No Handicap or Travel Restrictions – working from home is ideal for someone who is disabled or partially disabled and who may have difficulty getting to and from work, or in the workplace. Also travel, required in many jobs, is never a factor, so someone like a single mom with children to care for, does not have to deal with that problem.Tax Deduction For Use Of A Home Office – for many people who work at home, this can be a big one. You are allowed to deduct expenses for that portion of your home that you use for business. But be cautious, deduction for business use of the home can be a red flag for tax auditors. To make sure you are deducting only those expenses you are entitled to see IRS publication 587. For more information go to business.gov and look for “Business Use Of Home.”You’re The BOSS – you no longer work for an demanding insensitive (and sometimes stupid) individual. Now you’re the big cheese, you make the decisions, you set the schedule. One of the most common answers I hear when I ask why did you leave your job is “I couldn’t get along with my boss.”DISADVANTAGES OF WORKING AT HOME:You’re The BOSS – wait, you say “I thought that was an advantage?” Yes, but as one of my mentors, Michael Gerber, used to say “Be careful about going into business for yourself. You may go from working for a demanding insensitive and sometimes stupid boss, to find yourself working for a dithering idiot.” And, when you begin to feel the pressure of cash flow, decision making, scheduling, and seeing all the hats you will have to wear as an entrepreneur, you may find this all too true.Lack of Benefits – paid vacation, paid holidays, sick days, health insurance – all gone. You’re on your own now and you suddenly realize just how much those benefits were worth.Flexible Schedule – a flexible schedule can be both an advantage (as described above) or a disadvantage. When you control the schedule there is nothing to stop you from scheduling things that are not priorities. Let’s take me for example; I started this Article right after lunch today. Worked fairly steady for about an hour and then decided to take a break and go to the store and pick up some stuff I needed (I could set my own schedule – right?). Came back, opened the mail and made the mistake of opening my emails. Of course you know what happened, and here I am at 7:45 in the evening just getting started on the Article again.Distractions – Demands of Others – imagine you are a work at home mom, trying to finish a project for a demanding client who needs it in the AM. Your oldest child “Mom, there is someone at the door.” Ten minutes later, your youngest child “Mom, Jimmy hit me.” – Jimmy “But mom, she spilled juice on my game.” Twenty minutes later, “Mom, I’m hungry.” and so it goes until your husband comes home and says “what’s for dinner.”Clutter – unless you are a master at space planning and organizing, and have a lot of space to store and file, you won’t believe the amount of clutter a home business can generate. I said in a prior Article in this series, that I had six piles of paper on the floor of my home office connected with unfinished projects that I was unable (or unwilling) to put away. Guess what, they are still there.Lack of Social Interaction (& support) – don’t think you will miss inter-acting with co-workers every day? Unless you are a very anti-social person, you better think again. When you work from home almost all your communication with anyone other than your immediate family is on the computer and the telephone. You have to work at scheduling enough time to even have lunch with a friend – or client – on an occasional basis. Human beings are herd or pack animals, and it’s hard being a lone wolf (or in our case hopefully eagles).Record Keeping / Paperwork – I don’t know very many people with a Home Business, that can afford a Bookkeeper, but guess what – the books have to be kept. And even if you can afford to use an off site bookkeeping service, there are still records to deal with. My suggestion – QuickBooks. I’d be lost without that program. It’s quick and it’s easy, but it’s still bookkeeping.There you have it. Five advantages, seven disadvantages. Hopefully for you, the advantages will outweigh the disadvantages.For more information about Home Businesses, look for the next article in this series; “Home Business 101 – A Business Plan For Your Home Business”