About Home Businesses

More than 150 million people in North America own home-based Internet businesses. These companies make up 52 percent of small firms and supply 10 percent of the total revenue of the economy. Having and operating a home-based business gives new owners an inexpensive place to start. Forty to 44 percent of home-based businesses need less than $5,000 for startup. In addition, more than half of home-based businesses continue on after 5 years. They are relatively easy to start, and restart, as needed.

Benefits

Advantages of maintaining a home business include:
--More personal freedom. You will spend less time traveling to and from work. Also, you have no supervisor, specific work schedule and no office politics.
--Tax benefits. You can withhold a portion of your home's operating and depreciation costs on your home as business expenses.
--Added time for friends and family. You can make sure your kids get off to school safely and be home upon their arrival. If someone in your family is ill, it's easier to leave your home's desk than one in another office.

Considerations

Home businesses need a lot of your time to be successful, particularly in the beginning. They can even involve more time than most traditional jobs.
Also, being your own boss doesn't mean that you have total independence. You have to meet your business needs such as contacting customers and suppliers.
Finally, balancing family and life can be tricky when you bring your business into your home. It helps to maintain a precise schedule for business time and another for family to guarantee that you are dedicating enough time for both.

Misconceptions

One myth about working out of your home is you will not have adequate work to generate money. Before creating your own business, research your area for your skills or look online. You may find that there is a wealth of work that exists.
Another myth is that you will work at home everyday. Home-based businesses frequently entails travel or visiting outside offices. Sales and service occupations generally require meetings with clients. However, most of the time, these businesses can be operated from anywhere with a phone and laptop.

Types

There are dozens of home-based business ideas to choose from. Here are a few:
--Personal trainer. For more information about becoming certified, check out the National Federation of Professional Trainers.
--Medical claims billing. Go to www.E-learners.com to find transcription training courses online.
--Web design. Software and hardware costs can be high, but good Web designers are likely to be well compensated for their work.
--Home inspection. For information on becoming certified for this home business, the National Association of Certified Home Inspectors website is the place to go.

Warning

Some legal safety measures need to be taken when creating a home business. For example, you have to set up a business entity. This will help protect you and your company from liability issues. If your state requires a business license, you must apply for one before selling anything.
Additionally, your tax condition will change as you begin your home-based business; you have to stay on top of any tax law changes. Owning a business means you will file your taxes differently; you may want to receive help from a professional to be certain your deductions are possible and that you are paying the accurate amount of tax.

Resources

• Home-Based Business information on AllBusiness.com
• National Federation of Professional Trainers
• E-learners.com