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Can You Handle A Home-Based Business

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Think you can handle your own home-based business? Certain personality traits could help you succeed. Starting a business is a big responsibility that includes commitment, professionalism and self-discipline. It involves careful consideration, such as what type of competition you'll encounter, the demand for and quality of the service or product you'll provide and the management of cash flow. Read on to find out how a swift launch and expedited growth can occur as long as you weigh the pros and cons of developing a business, create a solid business and financial plan and understand and abide by local and federal laws and guidelines

Find Your Inner Drive
When it comes to starting your own business, examining your abilities before you act can save you from disappointment and wasted time in the long run. For instance, ask yourself whether you can set goals and stick with the plan. Once the goals are set, do you think you can accomplish what you've planned? Setbacks will occur; do you think you can remain optimistic?

Most entrepreneurs often demonstrate characteristics that include confidence, risk-taking, creativity, drive and determination, but the following personality traits can directly impact your business as well.

  • Passion for the business will make you a hard worker.
  • Ethical principles, such as wanting to provide a useful business to your community and to have the respect of your peers, can give your business a positive image.
  • Persistence is needed to stay on top of events taking place within the business. Trade associations and subscriptions to magazines focused on your business can help.
  • Socializing will help your business grow because it gets the word out about your company and creates relationships for its benefit.
  • Organization is another attribute that aids growth.
Points to Consider
Determine whether this is the right choice before you take on the challenge by considering the pros and cons. Some potential pros and cons of a home-based business are as follows.

Pros
  • You can stay at home (no commuting).
  • You may dress casually.
  • You can set your own work hours.
  • You are your own boss.
  • You would have more tax benefits and write-offs, such as claiming depreciation for your home office.
Cons
  • The town or city you reside in will want to maintain a positive character and quality, which will mean your activities and future growth potential may be limited.
  • You may face zoning restrictions.
  • You may face prohibition of the production and sale of certain goods.
  • Most likely you will need to invest many hours to set up the business; this may infringe on your personal and family life.
  • The Internal Revenue Service (IRS) may have a bunch of questions for you to answer, as this federal watchdog keeps a close eye on home-based businesses. (Read more about the advantages and drawbacks of working for yourself in Be Your Own Boss By Freelancing.)
Resources to Consider
Forging ahead and starting the business may require you to enlist the help of a local attorney and an accountant, but free information and assistance are also available from your local Small Business Development Center (SBDC) and SCORE offices. Both are associated with the U.S. Small Business Administration (SBA). The IRS can even provide free assistance, which would include accounting and recordkeeping, through the Small Business Tax Education Program.