3 Reasons Why the Number of Home-Based Small Businesses is Booming

July 22, 2016
Due to the fact that you don’t have to rent office space if your business is home-based, your overhead is already significantly lower than a small business owner who rents an office.

Fifty-two percent of all small businesses in the United States are home-based. The benefits of starting a home-based small business are myriad, and one of the most obvious is completely eliminating the dreaded commute to the office. Most Americans, according to a Gallup poll, spend an average of approximately 50 minutes a day commuting to and from their offices. In addition to no commute time, the following three benefits are just some of the reasons why home-based businesses are rapidly becoming the fastest growing form of business start-ups in the country.

No. 1: Allows for greater flexibility. Small business owners that are home-based have the ability to work whenever they want, whether it be at night, in the morning or anytime in between. This is especially beneficial if you have children and/or family obligations, as you can schedule business meetings with your clientele or suppliers around taking the kids to school, games, etc., which can then take place via instant message, over the phone or Skype from the comfort of your home office. Furthermore, working from home not only drives out drive time, but does away with dress codes, and when you roll out of bed you’re already at work.

No. 2: Reduces overhead costs. Due to the fact that you don’t have to rent office space if your business is home-based, your overhead is already significantly lower than a small business owner who rents an office. This, in turn, allows the home-based business owner to be more flexible in their pricing decisions in order to better contend with the competition that has to pay office space expenses, such as rent, utilities, etc., and might not be able to compete with your prices as they must consider their overhead costs when making pricing decisions. And, getting back to no commute, the home-based small business owner saves a small fortune on gas in the long run. The bottom line is that running a small business from home requires much less startup cash as well as maintenance.

No. 3: Tax benefits. Tax advantages for home-based businesses are plentiful and chock-full of deductions. First and foremost, a small business owner working out of the house is allowed to deduct a portion of their home’s operating and depreciation expenses as business expenses. This can include a percentage of the mortgage, property taxes, and home insurance. Home-based business owners can also deduct a portion of their utilities, such as heating and electricity bills, as well as office supplies, including paper, ink toner, postage and even paper clips. Office furniture, such as desks, chairs, bookcases, etc., are also allowable deductions. Although daily commute deductions do not apply to home-based business owners, work-related travel deductions do, such as attending a conference or traveling to meet a client. In these cases, you can deduct any transportation costs, such as plane tickets, bus fare, taxis, airport parking, rental car, and lodging.

 

Blog by Dale Myers. the NALA's Head Writer.

The NALA Blog

Blog Archives

Contact Us

Thank you for contacting us! We will get back to you as soon as possible.

We are located

During this unprecedented time, STARSTIX, THE NALA and STARKART are here to support your business. We are fully operational and available to continue conversations about your Campaign needs.
As a reminder:

  • We partner with thousands of grocery stores throughout the US and right in your neighborhood. These stores are NOT CLOSING and in fact are seeing unprecedented numbers of shoppers.

  • When this trying time is over, your Campaign will be in place to remind everyone who you are and why they should do business with you. Everyone will need to rebuild!

  • Our RDM Program will allow you to be Discoverable online as more people turn to digital options as a way of doing business.

We are here to help in any way we can. Be safe, be diligent and above all be healthy!
CUSTOMER SERVICE: (866) 767-3238

"British Columbia", "ON" => "Ontario", "NL" => "Newfoundland and Labrador", "NS" => "Nova Scotia", "PE" => "Prince Edward Island", "NB" => "New Brunswick", "QC" => "Quebec", "MB" => "Manitoba", "SK" => "Saskatchewan", "AB" => "Alberta", "NT" => "Northwest Territories", "NU" => "Nunavut", "YT" => "Yukon Territory" ); $state_list_usa = array( 'AL'=>"Alabama", 'AK'=>"Alaska", 'AZ'=>"Arizona", 'AR'=>"Arkansas", 'CA'=>"California", 'CO'=>"Colorado", 'CT'=>"Connecticut", 'DE'=>"Delaware", 'DC'=>"District Of Columbia", 'FL'=>"Florida", 'GA'=>"Georgia", 'HI'=>"Hawaii", 'ID'=>"Idaho", 'IL'=>"Illinois", 'IN'=>"Indiana", 'IA'=>"Iowa", 'KS'=>"Kansas", 'KY'=>"Kentucky", 'LA'=>"Louisiana", 'ME'=>"Maine", 'MD'=>"Maryland", 'MA'=>"Massachusetts", 'MI'=>"Michigan", 'MN'=>"Minnesota", 'MS'=>"Mississippi", 'MO'=>"Missouri", 'MT'=>"Montana", 'NE'=>"Nebraska", 'NV'=>"Nevada", 'NH'=>"New Hampshire", 'NJ'=>"New Jersey", 'NM'=>"New Mexico", 'NY'=>"New York", 'NC'=>"North Carolina", 'ND'=>"North Dakota", 'OH'=>"Ohio", 'OK'=>"Oklahoma", 'OR'=>"Oregon", 'PA'=>"Pennsylvania", 'RI'=>"Rhode Island", 'SC'=>"South Carolina", 'SD'=>"South Dakota", 'TN'=>"Tennessee", 'TX'=>"Texas", 'UT'=>"Utah", 'VT'=>"Vermont", 'VA'=>"Virginia", 'WA'=>"Washington", 'WV'=>"West Virginia", 'WI'=>"Wisconsin", 'WY'=>"Wyoming" ); ?>

Thank you for your interest in the
NALA's Reputation & Directory Management platform

Not Sure? Try Us For Free!
Start My Free 14-Day Trial