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Saturday, January 31, 2009

Advantages and disadvantages of a home-based business

Advantages of a home-based business include

  • having a flexible schedule;
  • integration of family and work responsibilities;
  • less involvement with others in a regular work environment, such as power struggles and red tape;
  • no commuting time (unless you travel to a customer's home or place of business);
  • control of your own personal environment (temperature, light, work breaks, etc);
  • self-determination and independence; increasing personal fulfillment;
  • seeking and setting personal goals; enhancing creativity;
  • and remaining in a community or moving with a spouse to a new community even when jobs are scarce or not available.

Disadvantages of a home-based business include

  • needing to know a lot of information to operate a business successfully;
  • the risk involved in operating a business;
  • conflict in ownership of time (When is it my "own" time and when is "business" time?);
  • lack of guaranteed employee fringe benefits;
  • many competing roles and responsibilities (producer, promoter, bill collector, customer service representative);
  • lack of job security; loss of home space use by family;
  • interruptions; lack of self-discipline;
  • little opportunity to delegate tasks to others;
  • long hard hours, and legal requirements including zoning regulations. Being committed to a business may mean lack of freedom to do other things and to go as you please.

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