Advantages and Disadvantages of a Home-Based Business

Strategy Plan One

January 16, 2012

The thought running a business out of your own home is appealing to some entrepreneurs, while others may think differently of this type of business environment.  Here are some advantages and disadvantages of operating a home-based business.  Weigh your options carefully!


– good starting base

– can ease into business life and environment at your own pace

– lower risk (financial)

– can achieve work-life balance easier

– increased productivity

– in some circumstances, can take care of children at the same time running the business

– no commuting

– less overhead costs

– tax advantages

– flexible work shifts and work hours

– easy access to work space

– easy to customize work space

– use of existing resources such as phone lines, internet, utilities

– taking breaks and lunch hour in your own home

– privacy from commercial tenants, clients and competition

– easy access to home gym and amenities

– ability to utilize family members in operations


– too much interference from family

– work-life balance unbalanced towards life, family and home issues

– inability to concentrate on operations and management

– lack of professional space

– noise

– lack of privacy

– inadequate space, and inability to expand office space

– lack of visibility

– customers can’t gain easy access

– optics around level of professionalism

– lack of technology

– some types of businesses can’t be done from home (ie: manufacturing / neighbourhood by-laws)

– additional wear and tear of a family home

– additional insurance costs

Strategy Plan One

© 2012 Strategy Plan One

3 thoughts on “Advantages and Disadvantages of a Home-Based Business

  1. I’m an entrepreneur who runs my Public Relations firm from home and it is a wonderful fit for me. I’m home alone during the day and can have complete concentration as compared to an office where there were many other distractions and temptations to not be so productive. I think it’s a different experience for everyone!

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