Small business growth has proven to be tough in today’s economy. The reason is at least two-fold: first, you need capital to grow; and second, banks are not generously handing out capital these days.
In order to achieve growth, some businesses are electing to go home-based to reduce their expenses. What many small business owners are finding is that the advantages to doing so outweigh the disadvantages.
Advantages to Owning a Home-based Business
First, because of the tremendous reduction in overhead, business owners are able to pass those savings on to their clients. This can make a small business owner more competitive, especially in a highly competitive market. Another advantage is the flexibility working from home can bring. Other advantages, include fewer interruptions from suite mates and sales people, less time spent commuting, and of course, overall improved cash flow.
Disadvantages to Owning a Home-based Business
For many business owners there are problems with owning a home-based business:
- Not being able to achieve a clearly-defined separation between work life and home life;
- Having to allow employees and strangers into your home or taking up temporary residence at Starbucks; and
- It can get lonely operating a home-based business.
When you weigh the advantages and disadvantages of going home-based, at least temporarily, you may find that it’s worth it to achieve the growth your business needs to get through this economic slump. You can read more about how to run an efficient home-based business in 101 Home Office Efficiency Tips.
Filed under home-based business by Roz