The vast majority of home-based businesses are sole-proprietorships – according to the SBA a mere 4% of firms based out of a private residence operate as partnerships. And while going it alone may fit the standard idea of a home-based business, running yours with a partner can be a real boon for your burgeoning company. Not only is the total number of partnerships on the rise, but according to the IRS, the average revenue of partnerships grew at triple the speed of sole-proprietorship between 1980 and 2007.
So why the low number of home-based partnerships?
Well, running a business from your home is a very personal undertaking, and it’s uncomfortable inviting someone into your house to help run a company. But if you think someone would make a great business partner, and you can move past that discomfort, a partnership may be a great option for your home-based business as long as you properly set it up.
Decide Exactly Where You’re Going to Work
One of the trickiest parts to running a home-based business is corralling off an area specifically for your company. It’s very easy to let your home and professional lives bleed into each other when a door or hallway is the only barrier separating the two. Running a partnership from home makes this arrangement even more complicated, so it’s important to set boundaries early on. (more…)
Posted in Work at Home