by C L Smith

Created on: June 18, 2009   Last Updated: July 01, 2009

Saying 'So Long 'to a corporate employer in order to run a home-based business is a dream for many Americans. After all, when you walk out the doors of the corporation for the last time, you leave behind the unending meetings, the rush hour traffic, and perhaps a boss who may have been less than tolerant of the other obligations in your life.

Even with this upside, working from home can have a down side. And if left unchecked, this down side can impact the sucess of your business in major ways. The following information is provided to assist you in the identification of some of the potential disadvantages of a home based business and in turn, take the appropriate actions to mediate these issues. As a result, your best laid plans of working from home will have a real shot at producing a very rewarding entrepreneurial experience.

Potential Disadvantages of a Home Owned Business

1. Underestimating the money required to operate the business. It is not uncommon for the small business owner to fail to seek expert advice on topics such as minimizing taxes, forecasting startup costs, and calculating the amount of cash they should keep on hand. Seeking the advice of professionals and planning accordingly will protect your bottom line.

2. Failure to set formal home business hours. A failure to set limits with friends and neighbors regarding the acceptable intrusions to your workday diminishes your ability to reap the potential benefits of your home owned business. You need to ensure that others recognize that just because you're at home doesn't mean you're not at work.

3. Failure to consider the potential benefit of moving out of your home. It is difficult for two people to work side by side. The difficulty of conducting business in the home increases as both the number of employees and the activity rate increases. As a result, there is a point in time that the work can no longer be efficiently performed in the allotted space. At that point, you may want to consider the possibility of moving the office out of the home.

4. Inadequate Office Equipment. A business owner may be hesitant to purchase needed equipment for the office in an effort to keep expenses how. However, a home office is not unlike any other business in that certain equipment is essential to compete effectively in your business niche. A failure to purchase needed equipment is false economy. Work to identify the essential equipment you need to execute the particular functions of your business and

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