Home-based business is a $427 billion a year industry, greater than the pharmaceuticals, consumers goods, and food industries combined. This fast-growing segment of the economy has great appeal, but it also has its risks.
Many entrepreneurs enter the home-based business industry by accident. They see a way to make money and start small, expecting to expand when the business takes off. But when their business does become profitable, they may decide to stay small, at least in part because they like the advantages of basing their business at home.
Some of the risks involved in running a home-based business are the same as for starting any business: no fringe benefits, no job security, start up costs, initial lack of steady income, and lots of long hours and hard work. Add to these the loss of home space, isolation, likelihood of interruptions, and the need for tremendous self-discipline and you've got the disadvantages of starting a home-based business.
No matter why they start a home-based business, these entrepreneurs face some unique work situations. On the negative side, a home-based business takes up space in the home, which could cause family conflicts. There are no fringe benefits --- no sick time, vacation time, health benefits and no one to cover for you. There are startup costs and no financial stability at first. Working at home takes great personal discipline to keep to the task and not get distracted. And there's no one to share the risks.
On the other hand, working at home provides tremendous flexibility and the chance to participate more in family life. You can work from most anywhere. There are no coworkers to deal with and no boss to question your work. Overhead and start-up costs are minimal. You can manage your own physical environment, making your office safe and comfortable. The profit is all yours.
Whether the work is supported by computer technology or performed entirely on the computer, the world of the internet is a major force in home-based businesses. As with any busy opportunity it's important to distinguish the reputable businesses from the scams. Check with chambers of commerce and government agencies to see if the company has a good record of compliance and consumer satisfaction. Talk with current owners to see if their earnings match the company's earnings claims. Get a fully audited financial statement from the company. If you don't understand it, get help from an accountant or a lawyer. Then compare different companies to find the best deal.
As with any business startup, you need a business plan that addresses financial, marketing, and legal aspects of the business. Are any licenses or certifications needed to start your business? What are the market opportunities for your product or service? If you intend to ask a bank for financing, you'll need to have all this information on paper.
When you're flying solo don't hesitate to get help from business people who have other skills you need to succeed, like lawyers, accountants, and marketing experts. Whether you buy into an established business opportunity or develop your own concept, remember that the secret to building a successful home-based business is to center it on your own skills.
Many entrepreneurs enter the home-based business industry by accident. They see a way to make money and start small, expecting to expand when the business takes off. But when their business does become profitable, they may decide to stay small, at least in part because they like the advantages of basing their business at home.
Some of the risks involved in running a home-based business are the same as for starting any business: no fringe benefits, no job security, start up costs, initial lack of steady income, and lots of long hours and hard work. Add to these the loss of home space, isolation, likelihood of interruptions, and the need for tremendous self-discipline and you've got the disadvantages of starting a home-based business.
No matter why they start a home-based business, these entrepreneurs face some unique work situations. On the negative side, a home-based business takes up space in the home, which could cause family conflicts. There are no fringe benefits --- no sick time, vacation time, health benefits and no one to cover for you. There are startup costs and no financial stability at first. Working at home takes great personal discipline to keep to the task and not get distracted. And there's no one to share the risks.
On the other hand, working at home provides tremendous flexibility and the chance to participate more in family life. You can work from most anywhere. There are no coworkers to deal with and no boss to question your work. Overhead and start-up costs are minimal. You can manage your own physical environment, making your office safe and comfortable. The profit is all yours.
Whether the work is supported by computer technology or performed entirely on the computer, the world of the internet is a major force in home-based businesses. As with any busy opportunity it's important to distinguish the reputable businesses from the scams. Check with chambers of commerce and government agencies to see if the company has a good record of compliance and consumer satisfaction. Talk with current owners to see if their earnings match the company's earnings claims. Get a fully audited financial statement from the company. If you don't understand it, get help from an accountant or a lawyer. Then compare different companies to find the best deal.
As with any business startup, you need a business plan that addresses financial, marketing, and legal aspects of the business. Are any licenses or certifications needed to start your business? What are the market opportunities for your product or service? If you intend to ask a bank for financing, you'll need to have all this information on paper.
When you're flying solo don't hesitate to get help from business people who have other skills you need to succeed, like lawyers, accountants, and marketing experts. Whether you buy into an established business opportunity or develop your own concept, remember that the secret to building a successful home-based business is to center it on your own skills.
About the Author:
Sinclair Sonny, a skilled webmaster has found a new business course that provides you with the best training resources for your business opportunity. Just visit the website business course and get access to the step by step action guide and business building recommendations.
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