When you think of owning and operating a business, you might think about renting commercial real estate, commuting to an office, or managing employees.
But with the rise of home businesses, more and more people are discovering ways to use remote work to pursue entrepreneurship with their headquarters at home.
In today’s connected world where technology affords us more flexibility in how and where we work, home-based businesses come in a wide variety of forms.
Some require you to convert a spare room into a mini-warehouse for products, while others can be run completely online.
But generally, you can start these types of businesses using your existing space and means.
What makes a “home-based” business: The pros and cons
A home-based business is a venture—whether full-time or run as a side hustle—that you can start and operate using your own home as your base of operations.
A few home-based businesses, especially those that sell online and don’t buy and hold lots of inventory, can even be run on the go—you don’t necessarily need to be bound to your home.
Naturally, there are pros and cons to consider when deciding whether a home-based business is right for you.
Pros:
A low investment business idea has fewer overhead costs (such as warehousing fees), plus potential tax deductions you can claim.
The option to sell products or services locally or internationally.
Flexible work/life balance, which is ideal if you’re a stay-at-home parent or a retiree, for example.
You can create a family business where your relations or your spouse can chip in as needed.
Cons:
You may need to convert space in your home to support the needs of your home business (e.g. holding inventory, creating a home office, or storing equipment). The challenge can be doing it without disrupting your life at home.
You still have to comply with any regulations that pertain to the business you want to start (e.g. you may still need to rent a commercial kitchen if you plan to sell food products or a license/permit to hold inventory).
Your business may outgrow your home and require you to rent additional space and hire employees.
Working from home offers you a lot of freedom, but it can also be lonely. This might be difficult if you enjoy being around other people.
8 home-based business ideas you can start today
While there are plenty of ways to go about starting a home-based business, the following are some of the most approachable paths to creating a home business for yourself:
1.Buy products in bulk to sell
2.Sell homemade products you make yourself
3.Start a dropshipping store
4.Start a print-on-demand store
5.Sell your service or expertise
6.Productize your service or expertise
7.Grow an audience you can monetize
8.Buy an existing ecommerce business
