The Pros and Cons of Starting a Business From Home

October 12, 2020 257 views


In this post, you’ll find a collection of tips, insights, and resources on the topic of running a business from home as opposed to locating your business in a commercial location. Before you get to the resource section, here are a few considerations I’d like to share.

Naturally, there are pros and cons to running a business from home versus a commercial location. Let’s have a look at a few of them.

Pros of Running a Business From Home:


One of the benefits of running a home business is the savings. When you have a commercial location, there are many expenses associated with running a business as opposed to running your business from your home. Also, keep in mind when you run your business from home. You can take tax deductions, like utility bills and interest on your mortgage, for the part of the house used for your business.

Commute Time:

When you run your business from home, you save on the commute time, and you can work on your business when you’re not doing anything else. If you have to work on a project and it’s late, you don’t have to worry about getting home on time.


If you’re caring for family members, it’s a bonus to run a home business. That way, your family is nearby. You can still operate your business, especially when you have small kids or an elderly family member.

Part-Time Operation:

Depending on the type of business, you can run it part-time, and you can even have a job and run your business after work.

Perfect Setup For An Online Operation:

A home-based business is perfect for businesses that are 100% online. Whether you’re running an e-commerce site, website design, or running a and Adsense blog, where you don’t see customers, this would be the perfect setup. Businesses such as consulting, freelancing, and many service-based businesses are also a good fit for a home-based business.

Many businesses can start as a home-based business. Once they expand and become successful, you can expand and locate in a commercial location.

Cons of Running a Business From Home:

Zoning restrictions:

There are many restrictions on the types of products and services you can provide as a home-based business. For example, opening a bakery is possible, but many restrictions are involved. You would need to separate the business from the rest of your home, especially the kitchen, where you’re baking products for sale.

There are restrictions on the type of business you can open up in your home. Every area has its laws and regulations. Check with your local municipality for the type of business you’re considering to determine if you can operate from your home.

Walk-in Traffic:

Suppose your business depends on walk-in traffic, for example, a retail establishment. The number of people that will go to a home-based business will be a lot less then if you operate your business from a mall. Location and walk-in traffic is something you need to consider before setting up operations in your home.


Your customers may perceive your business in a commercial location as a professional establishment, as opposed to operating out of your home. Naturally, this depends on the type of business and products and services you’re offering, but it’s something to consider.

Space Restrictions:

The space you need to operate your business is something to consider. If you don’t have the space available, you’ll need to make the room or operate from a commercial location.


If your business grows, you may not be able to continue running it from home and will need to move to a commercial location.

You’re Always Around Work:

Separation from your work life and personal life may be limited. You may find yourself always working.

Work Style:

When working from home, you may find your work style is compromised, for example, by taking the time to watch TV or taking a nap, as well as other issues unrelated to running your business. You need to set boundaries that work best for you.


In the resources below, you’ll find more pros, cons, and considerations for running a business from home as opposed to a commercial location. Take some time to browse through the articles that offer insights to help you make the right decision for your business idea.


A Collection of Resources Related to Running a Business From Home

Running a Business From Home

How to Run a Business From Home | Inc.com

Starting a Business Out of Your Home

101 Secrets to Running a Successful Home-Based Business | AllBusiness.com

6 Ways to Smartly Run Your Small Business from Home – Small Business Trends

Running Business From Home: 30 Tips on How to Succeed

The Pros and Cons of Running a Business From Home

The Pros and Cons of Owning a Home Based Business

The Pros and Cons of Launching Your Business From Home

Home-Based Business Advantages and Disadvantages

Pros and Cons of a Home-Based Business vs. Brick and Mortar Business

Easdowns Accountants & Advisers – The pros and cons of a home-based business

Advantages and disadvantages of starting a business from home | nibusinessinfo.co.uk

The Pros and Cons of Starting a Home Business | Entreprenoria

Top 10 Advantages of a Home-Based Business | AllBusiness.com

Can I Run a Business From Home?

Is It Legal to Run My Business Out of My Home? – BusinessTow

Why is it illegal to run a business out of your home in the USA? – Quora

Can I run a business from home: a guide for small businesses

House Rules: property law and running a business from home | Financial Times

How to Start a Home Business | legalzoom.com

Zoning Considerations

business – Is Your Home Zoned for Business?

What You Should Know About Zoning Laws | legalzoom.com

Legal Restrictions on Home Businesses

Home Businesses and Zoning Laws | Nolo

Do Zoning Laws Apply to a Home Business?

Legal Requirements

Home-Based Business: What Licenses and Permits Are Required? | Nolo

The 5 Licenses and Permits You Need for Your Home-Based Business

Setting Up a Homebased Business Legally – Entrepreneur.com

5 Tips to Keep Your Home-Based Business Legal | Inc.com

Operating a Home-Based Business – FindLaw

Home Based Business Ideas

Home-Based Business Ideas to Consider

47 Proven Home Based Business Ideas | List of Work From Home Plans

13 Home Business Ideas That Let You Work From Home

101 Best Business Ideas You Can Start in 2020 (and Make Money) on the Side

42 Home-Based Businesses You Can Start Today – BusinessTown

Home Business Ideas: 40 Top Remote Jobs to Explore in 2020

54 Small Business Ideas for Anyone Who Wants to Run Their Own Business

Courses Related to Running a Business From Home



Books from Amazon Related to Running a Business From Home

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