Top 10 Myths of Running a Home-Based Business

Not having to answer to a boss. Doing whatever you want during the day. Having the whole home as your workspace. Plus, other myths about running a home-based business.

Starting a business and working out of your home can be rewarding. Chances are you'll spend less time commuting, it's less expensive than renting or buying a commercial space, there may be tax deductions you can take advantage of, and-depending on the business-may afford you more flexibility than a regular 9-to-5 job.

But, not everyone gets what you do. In fact, running a home-based business is riddled with myths and misconceptions.

Myths about running a home-based business

1. Anyone can do it.

Fact: Entrepreneurship isn't for everyone. A successful home-based business requires a CEO, CFO and CIO all rolled up into one person who is self-motivated, resourceful, creative, organized, confident, agile, versatile, decisive, and tolerant to risk-to name just a few key qualities needed to run the show.

  • Did you know, there are approximately 2.7 million self-employed Canadians who fit this bill? That's about 14 per cent of Canada's labour force.

2. You don't have a boss telling you what to do.

Fact: You work for the toughest boss around. What other boss out there keeps tabs on what you do every day, all day, in the middle of the night, on weekends, and while on holiday?

3. You don't have to work with people you dislike.

Fact: Cherry picking clients and customers isn't an option and frankly the CFO in you won't let you as it will affect your bottom line.

4. You get to set your own schedule.

Fact: Only retired people get to set their own schedule. Consistency is key and your schedule will have to take into account the hours you work best, are most productive and the availability of your customers, suppliers and clients.

5. Your work and home life are now one.

Fact: A work-life balance isn't something that just happens on its own, it's something you have to create and maintain. For many, part of the key to accomplishing this is to have a workspace in the home that is separate from your down time and keeping a consistent schedule so that family know when you're not working and clients know when you're available.

Myths about protecting your home-based business

Some misconceptions about running a home-based business however, are more serious. And, as a small business owner, belief in these myths could leave you exposed and unprotected.

6. Your home insurer doesn't need to know about your business.

Fact: You risk voiding your home insurance policy if you don't keep your home insurer in the loop about running a business out of your home.

7. Your home insurance policy covers your business.

Fact: You might be under the mistaken belief that your business is automatically insured under the liability and contents coverage you have with your home insurance policy; it's not. If available, you can purchase an extension from your home insurer that will cover your business; however, you may find that the limits are, well, limiting.

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8. Working from home means you don't need liability coverage.

Fact: Liability is probably the biggest risk with a home business. Let's say you're sued by a client, or courier, who slips and falls at your home. Or, you're sued because there are problems with the product you're selling or the service you're offering. Without liability coverage, you'll be on the hook for any damages awarded by a court if successfully sued.

9. Your car insurance covers inventory, equipment or tools you have in your vehicle.

Fact: Your car insurance only covers your vehicle; not the stuff in it. Inventory, equipment, tools or supplies that might be stolen or damaged while in your car will not be covered under your car insurance policy. Items related to your business will only be covered if you have a home business extension on your home insurance policy, or a home-based business insurance policy.

10. It's a small business, insurance is not necessary.

Fact: Size doesn't matter. Big or small, the size of your business does not define your need to protect your livelihood. That's why, for the price of your daily large double-double, you can get a home-based business insurance policy that will cover:

  • your work computer, laptop and other expensive business equipment;
  • your liability if someone who is visiting your home for business purposes slips and falls, or you're sued because there are problems with the product you're selling or the service you're offering;
  • operating expenses and lost income should something happen to your home (like flood or fire) that makes running your business impossible.

The truth about your home-based business

When you're running a home-based business, if you don't protect yourself, who will? Protect everything that you're working hard to achieve and compare home-based business insurance quotes today at


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