This post is the first in a series I’ll be publishing over the next couple of weeks. The topic? How to use your tax return to start a business at home. Why am I talking about this?
Why Use Your Tax Return To Start a Business at Home?
As I have written about before, economic dependence is dangerous. A home business allows a woman to create an income stream that can hedge her family financially in case of disability, death, or divorce.
Even if those bad outcomes don’t happen, most families these days find that in order to save, invest and avoid debt, they need a second income in the household. Studies show that most mothers prefer part-time work. A home business allows a mom to remain her kids’ primary caregiver.
In addition, research shows that moms are simply happier when they have something of their own that isn’t related to household duties and childcare (source).
A cottage business can be that “thing” that allows a woman to utilize her talents and strengths, while improving her family’s financial situation. This isn’t to diminish motherhood or family life in any way. But let’s face it, no woman has ever received a merit badge for putting a shine on the bathroom floor!
So that’s the “Why” of starting a home business. That’s easy.
It’s the “How” that’s the hard part.
There is a ton of misinformation available online. When one goes to search for home-business ideas, you’re likely to turn up thousands of questionable ideas that are either illegal or a total waste of time. As an example of the latter, I never recommend taking surveys online for money. I don’t want you to earn pennies.
Many bloggers recommend these companies because they’re paid hefty commissions to do so, but I value your time more than that!
My goal with this series is to share real stories of women who are making real money with their chosen home business. Each of the women I interviewed I know either personally, or from networking online in private forums. Each of them is earning a very solid part-time or in some cases, full-time income. One of them does her business alongside her husband and supports a very large family!
I’m sharing a variety of business ideas.
Because contrary to what some people will tell you (even some of the women I interviewed – and I respectfully disagree!), every home business is not for every person.
We all have unique talents. Although I’m a blogger, I know that blogging is not for everyone. A pet-minding business is not for everyone. Selling essential oils is not for everyone. Amazon FBA is not for everyone.
But hopefully you’ll find an idea in the next few weeks that will either be a good fit for you personally or will spark your creativity for something that will.
One last thought on the “Why” of starting a home business.
(I’m not an accountant, and you would definitely want to speak to a CPA!) A home business may have tax advantages for you.
The reason I’m posting this series now is because, if you’re like most Americans, you’re about to receive a tax refund.
(Apologies to my non-American readers, I’m not familiar with the tax code everywhere, but the same principles likely apply globally these days. One of the moms I’m interviewing is from Australia.)
It’s easy to blow that tax refund on something fun since it feels like “free money”.
Instead of spending it, why not use your tax return to start a business at home that will also offer tax benefits and income next year?
My husband and I are self-employed. Since we must use our home for work, we enjoy a lot of deductions; even a percentage of our utilities, including our internet connection, is deductible. Most if not all of the money you may spend this year starting a home business will be 100% legally deductible. Speak to your accountant!
So let’s get started. My first interview will appear tomorrow. (Of course, you would want to make sure your spouse was on board with starting a home business. Here is a fantastic article about how to get your mate’s support.)
Enjoy! And if you have any questions, please leave them in the comments. Each one goes to my email inbox and I can answer it privately if you wish.
More posts in this series on using your tax return to start a business at home:
- Making Money with Rover – interview of a homeschooling mom with a busy pet-minding business she markets through Rover.com
- Start an Etsy Business – interview with mom and creative entrepreneur about her Etsy shop
- Start a Direct Sales Business – make money with relationship building and promoting a product you love
- How to Make Money at Home Blogging – four women talk about how they earn money from their blogs
- Amazon FBA Business – how this couple supports a very large family from home with the Fulfilled by Amazon program.