How to Compare the Hottest Home Business Opportunities

Home businesses are growing faster than any other kind of business. Do you number among the throngs who long to be their own boss? Does the idea of 16-hour days appeal to you? If you've decided to take the leap from 9-5 to self-employed, these steps will help you choose a home business that fits your circumstances, income requirements and dreams.

Difficulty:

Easy

Instructions

1. Look before you leap. Starting a home business is hard work. It is emotionally and financially demanding. Take an honest look at your life, your family, and circumstances. Before you decide to take the jump, make sure it's one you really want to take.

2. Compare your interests. Types of home businesses are either product-based or service-based. Choose a product-based business if you like to sell. A service-based business is for people who really enjoy people and want to work with them constantly.

3. Enroll in the Small Business Administration's free business planning course. They teach tips on everything from writing a business plan to budgeting and will get you started on the right foot.

4. Consider the investment. Product-based businesses have to keep an inventory of stuff to sell, while service-based businesses have supplies to buy. Typical start-up costs range from $500-$11,000.

5. Create a safety net. It will take 1-3 years before your business starts to turn a real profit. Have savings ready to help pay your bills until then and look for opportunities that will keep a stream of income coming in even when things get tight.

6. Draft a savings plan. Once your home business starts bringing in an income, you will want to know how you plan on spending the cash. The average income for home business households is $59,000 a year compared to $45,000 for other households.

7. Don't stop learning. The Small Business Administration has said that the most successful home business owners have college and postgraduate degrees.

Tips & Warnings

• To begin a home business you can invest in a franchise, buy an established business, or start from scratch. Research all your options before you decide which route to take.

• Network from the start and keep doing it. Every new face you meet can turn into a business ally and to make it a success you're going to need all the help you can get.