Home-based businesses have a lot of relevance in the present economy. Layoffs have made home-based business seem like a sensible option. The Internal Revenue Service (IRS) has made it much easier for people to claim deductions for a business based at home.
People operating a business from home have the right to deduct the cost of mortgage payments, rent and cost of repairs, and maintenance for the portion of the house that is being used for the purpose of conducting business.
Easy availability of software that helps people manage their personal finances and home-based business by keeping a track of income, expenses, and possible deductions, that can be claimed, is helping people effectively manage their home-based business.
In fact, the U.S. Small Business Administration (SBA), which was created in 1953 as an independent agency of the federal government to assist small business concerns, offers an automated self-assessment tool that can help people evaluate their readiness to start a small business and help them in their quest to launch it from the comfort of their home.
Businesses to Bank upon at Home
The following ideas can help people start a business from the comfort of their home.
- Keeping this in mind, people are buying long-term care insurance that would help them pay for home care facility, assisted living, or nursing home facility. Being taken care of at home is extremely expensive.
- So, a person who is genuinely interested in taking care of the elderly can make a decent living by choosing this line of work.
Direct Selling by becoming a Representative for a Cosmetics Company
- The cosmetics business is considered recession-proof since people want to pamper themselves, especially when they are feeling low.
- Becoming a representative for such companies costs very little money.
- Spending a bit of money on signing up, getting the brochure and samples is an inexpensive investment.
- The representatives earn 25 to 50% of retail price as commission on sales. The biggest advantage of becoming a representative is that companies are actively recruiting!
- Becoming a franchisee is advisable for people who have money but are reluctant to invest in a start-up during recession. Franchises do not have to be expensive. There are a number of low cost options.
- It's always advisable to go with a well-known company that has been franchising for a long time. Many franchises are willing to provide the necessary training to help people work from home. People can opt for either a low cost, part-time, or full-time franchise. In fact, its perfectly legal to operate a franchise from home.
The list of home-based businesses given is not comprehensive. Before starting a business at home, one should ensure that one has purchased an insurance for the business. A homeowners insurance policy will not suffice.
Moreover, any liability that may arise from the operation of a home-based business is not covered by the homeowners insurance policy. People should also be cautious while claiming deductions for their business based at home from the IRS, since only a reasonable amount of deductions are allowed.