About Home Based Jobs
Although some people who work exclusively at home are employed by a company, many have their own home-based businesses. The Bureau of Labor Statistics reported that in 2004, about a third of people who primarily worked from home were self-employed. Of those 7 million people, "two-thirds had a home-based business--that is, a business run from their home and no other location."
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The Facts
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According to the Pittsburgh Business Times, "the number of home-based businesses may range from 18 million to 38 million, depending on who is doing the counting." This number varies since home-based businesses include both part-time and full-time workers, and communities may or may not require licensing or other official reporting. While many home-based business are small, Money magazine's 1996 survey results indicated that approximately 20 percent of home businesses had a yearly gross income between $100,000 and $500,000.
Time Frame
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According to the Bureau of Labor Statistics, many people with home-based businesses work part-time, often in addition to a full-time job. In 2004, only about half of people with home-based businesses worked 8 hours or more per week at home, while nearly a quarter worked over 35 hours. "On average, self-employed persons with a home-based business worked 25 hours per week at home," according to the bureau. Home-based business owners may vary in how they count and report the hours they work at home.
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Type
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Home-based businesses cover a wide variety of industries. According the 2004 Bureau of Labor Statistics report, 16 percent of home-based businesses primarily focused on sales or marketing, 18 percent were construction and 45 percent were in professional business or management services. Other home-based businesses provide child care, financial services, customer service, products or website services.
Benefits
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Many people find that having a home-based business gives them more control over their work. In some cases, they may also be able to set their own hours or have a more flexible schedule for family, although some business owners find their schedules are often dictated by clients and deadlines. Although many home-based jobs do not have benefits like paid vacation and health insurance, many people find that they make more money per hour than they would as an employee. Home-based business owners also save the time and money normally spent on commuting.
Risk Factors
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The success of a home-based business depends on many factors, including the viability of the business idea, the entrepreneur's ability to reach the target market and find clients, the business owner's commitment to making the business work, and the financing available. Some of these things depend on the dedication and ingenuity of the entrepreneur, while others, such as overall economic conditions, are out of the small business owner's control.
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