One of the fastest growing segments for business start-ups are home based businesses. When you are starting your company from your home, you have much more flexibility than you would have if you were trying to buy or rent warehouse and/or office space. Working from home requires a lot of self-discipline, but if you are focused on the task ahead, the rewards can be significant.
There are even more advantages awaiting you if you live in California. The following list includes several benefits to starting a home business in the ‘Golden State’.
Home Costs Can Be Deducted On Your Income Taxes
It can be quite lucrative for you to operate a home business in California. There are tax benefits that can be applied to your home business if your situation applies. For example, a portion of your home-related expenses may be considered a tax deduction for your business. These types of expenses include:
• Your mortgage interest
• Utilities
• Maintenance
• Property taxes
In order to qualify for these deductions, your home office must act as your primary business office.
You Can Scale Up Or Down With Ease
Whether you own or rent a business office space, you are restricted to the size of your office. This means that if you need to downsize quickly you may not be able to move out of the space easily, especially if you are locked into a long-term lease.
By working from home, you have the option to hire more people, work longer hours, or utilize the services of a California real estate agency to purchase a new home that will meet your business needs.
You Will Spend Less Time Commuting
Another benefit of starting a home-based business in California is that you will have a much shorter commute. Recent studies have shown that the average American worker spends almost one hour commuting to and from their job or business.
Commute times in California are ranked among the 10th longest in the United States. Unfortunately, commuters’ driving habits and commute times have not changed over the years, so working from home can save you the frustrations of dealing with rush hour traffic.
Flexibility
Having the opportunity to work whenever you want can be beneficial to those who are juggling other obligations such as children. Email, instant messaging and mobile phones allow you to interact with suppliers, customers and clients whenever it is convenient for you. You can accommodate contacts who may be in a different time zone while also keeping up with your household schedule.
Fewer Overhead Costs
The final benefit of starting a home business in California is that your total overhead costs are much lower than if your office space was off-site. No commute means that you will save money on gasoline and auto repairs.
You can also test a business idea you have without spending a lot of money upfront on overheads. This will provide insight as to whether a business idea is feasible before spending a lot of money.
Starting a home business in California will give you opportunities and freedoms that you may have never considered before. You can grow your business at a pace that is comfortable for you while saving money in several ways.
