Home-based businesses are enormously popular in the US. The Chamber of Commerce reports that 50 percent of all businesses start at home, and also 19 million of the roughly 32.5 million small businesses (more than half) are home-based.

If you’re thinking of starting a home-based business yourself, it can be an excellent idea. Home-based businesses are incredibly convenient and potentially, profitable. Here, Brand Scrubbers covers some of the biggest benefits of such businesses and later explains the most critical considerations to make before getting started.

The biggest benefits of home-based businesses

Running a business beats out the traditional office (or brick-and-mortar) option in several ways:
⦁ Fewer overheads – like rent: You don’t have to rent or buy office space. You can also use your home’s existing internet and phone connections, not to mention utilities.
⦁ Tax benefits: You can ⦁ deduct some expenses for the portion of your home that you use for work.
⦁ Reduced risk: Due to the lower startup costs of a home-based business, the financial risk for you is lower.
⦁ No commute: You don’t have to commute to an office every day, which can save hours of time. Not to mention you avoid traffic, being late, and similar problems.
⦁ Better work-life balance: You can use the freed-up time, money, and energy for other things – like spending more time with your family and taking better care of yourself in general.

Best practices for maximum success

Of course, setting up a successful business is easier said than done. Homes aren’t explicitly designed for work, meaning you may have to take extra steps to ensure it’s a good base of operations. Here are some critical things to do or think about before you move forward with your initiative:

1. Write a business plan

This is a critical step that applies to all business types, not just home-based ones. A good business plan details the specifics of your business, such as the product, market conditions, business model, money-making strategy, finances, growth goals, and more. It can give you clarity on the concrete steps you need to take to succeed. Furthermore, it helps you sell your idea to investors (if you’re looking for them).

2. Have a dedicated office space

A dedicated office space is essential if you want to focus on your work without distractions and disturbances from family or friends. Being in an “official” office space will make it easier for you to get into work mode (and get out of it at the end of the day). Also, it can make logistical sense – it could provide storage space for products, a seating area for clients, or a specialty workshop for you.

And if you need to make some home modifications (like finishing a basement or garage) to give you the space you need, make sure you save those receipts! After all, these sorts of home improvements have the added benefit of raising your home’s appraisal value, as well.

3. Make sure you’re legally in the clear

Depending on the exact location and nature of your home-based business, you may need up to 5 different business permits and licenses to operate legally. This is in addition to the usual registration, EIN number applications, and similar. Mercury explains the requirements in detail. Note that zoning permissions and permission from the local HOA may be necessary as well.

4. Register a legal business structure

Forming a business entity can be a good idea. There are a number of options and each has their pros and cons, depending on your situation. So research your options carefully and if possible, check to see what other businesses in your field prefer.

5. Get organized with your files and documents

Running a business from home may put storage space at a premium, meaning you may be tempted to cram all your documents in a side drawer and forget about them. Needless to say, that’s a bad idea. It’d make finding important paperwork quickly hard. You can keep your documents organized digitally as PDF files to save space, and for convenient access.


When you start a home-based business, get your basics – like having a solid home office space, getting permissions, and choosing a business structure – right to be able to work comfortably and avoid legal problems. To succeed with your business, you can learn from the examples of big entrepreneurs and work on your entrepreneurial skills. Don’t forget to give your business time to find its feet!

Brand Scrubbers can help your business take their digital presence to the next level. Questions? Please email help@brandscrubbers.com.

Image via Unsplash

Caleb Nickel