Home Based Business

Home Based Business

Home Based Business:

With Home Based business being one of the fastest growing business types and self employment contract businesses which allows for working remote. It is becoming more popular for laptop businesses as technology continues to close the gap on going to an office as opposed to having the office everywhere you go.

Advantages of home based businesses:

There are several types of home based businesses. Those who inventory and sell physical products. There are those who are contract paid desk jobs. In addition there is businesses such as marketing and advertising.  Not to mention businesses such as Blogs, YouTube based businesses, and drop-shippers who use Amazon’s fulfillment centers as opposed to keeping a product in their house.

In my opinion, there are also those that walk the tightrope of being scams or limiting. The biggest examples are the pyramid schemes. No let me preface my comments that I am not totally against MLM (Multi Level Marketing) structures. Some of these businesses have great products, and a go-getter can make a lot of money even without recruiting all their friends and family. However, so many of them are completely recruitment based, and some have ridiculous buy in costs, and they have no real product or service to offer. So all of your income is a cut from the lofty buy in price, and you make money by recruiting people. That’s it. Those types of businesses I will not support.

Brief discussion on MLM’s

Since we are on the subject of MLM’s, there are a lot of advantages to them. First, they have a pretty low startup cost compared to a lot of other business models. They come with their own products, and a huge support staff made up of your peers to help you succeed.

For the right people, you can make a very big business out of many of the MLM’s out there. Just do your homework, and never be taken in by their initial sales pitch. Investigate, look at the quality of their products, and ask if there are limits or restriction to how you can market your business. If there are a lot of restrictions, or their product is way overpriced and not very good (despite their claims to the contrary), then politely decline and look for something else.

Laptop Businesses:

Laptop Businesses are simply businesses that allow to to work the business as long as you have a phone, laptop, and internet connection. These types of businesses can be done while being anywhere in the world. These businesses offer the most freedom of the various business models you can “work from home”. As with many of the other home based businesses, you can even start while having a full time job already. Many can even scale as you make income. However, these types of businesses also have a huge learning curve for those who are not so tech savvy, or can cost you more to overcome that handicap by paying someone else to do the heavy lifting. It also requires a great deal of self discipline as you can be tempted to focus more on your travels and having fun, instead of working. For more on web hosting services like 1&1.com, click here.

Beginning:

In the beginning of any startup, it is going to require a lot of your focus, energy, and time. If you are like me and work a full time job while working on building a side business to eventually fire your boss, then that means late nights and weekends will be working on your business instead of play time. Don’t fall for the “all you got to do is pay $2,000.00 for this automated software and you will start generating thousands of dollars by tomorrow” type of pitches.

Sure, automated software can go along way in helping you get your business off the ground, but there are usually a lot more components involved, and it will take time to generate the kind of income they are talking about. They can even show you on their screen how they do it, but they already have an established and very deep customer base. They have probably already been working for a long time, or paid a serious amount of money up front to substitute the time it would have taken them on their own.

Bottom line with Laptop businesses, is that while they offer the most freedom and flexibility, they can also cost a lot more than you may think to get a fast start. If you go this route, just be wary of the pitfalls, and then go for it.

Other advantages:

There are tax advantages for home based businesses to. Since I am not a tax expert, I can’t go into detail, but any tax consultant can tell you what those are. One huge advantage to any home based business, is that there is no commute. No sitting in traffic, or driving in the weather. You create less pollution, and wear and tear on your vehicles. There is less tempted to eat out, and gives more flexibility to allow for more exercise and other helpful habits.

Beyond that, you call the shots. You generally have little to no overhead. You can outsource some of your business to other work from home companies or overseas depending on your needs. It is possible with today’s technology to do a number of store type businesses without ever touching a product. This keeps your garage or basement free from inventory, and can lower the blood pressure of your spouse or landlord.

The difference between Home Based Business Entrepreneur and being Self Employed:

The biggest difference is really, a self employed person has a regular job. they just work from home. Like a lawyer or accountant for example. Their business is limited to how much they can do themselves as they trade time for money. Even though they can work from a home office, in many cases due to licensing, they can only operate in the states where they hold licenses, and in many cases, at some point they will need to physically interact with their clients.

Home based entrepreneurs however, can create passive income streams, and online businesses. They really have the freedom to automate or outsource most of their business as they grow. Which in turn allows for a much higher income potential. Many home entrepreneurs have many streams of income which adds up to a very comfortable lifestyle.

Service Based:

Some home based businesses are service based. Examples would be janitorial services, landscaping, maid services, and things like UBER or LYFT to name a few. These types of businesses can have low startup costs. Not require any special licenses, and can let you set your own hours. It also gives you the ability to expand as time goes on. The disadvantage of course, is again, you are the job. You also have a limited demographic in the beginning.

These types of businesses can grow, and eventually will outgrow your garage. (with the exception of UBER or LYFT types as you don’t have ownership of the business.) You will have to move into an office as the business expands. These businesses tend to require a lot more involvement by the owners. Until you can hire a manager for the day to day business. However, in the long run, the potential to create a chain can give the owner unlimited earning potential. These businesses also have a lot of overhead.

Of course if you have some decent operating capital, you can always do stocks, bitcoin or forex. These require a lot of attention, and can be very volatile. You can also be very rich. If that really isn’t your speed, then there is the major money machine of real estate or being an investor in individual businesses that pay dividends. They can all be very lucrative if you have the cash or connections to get in.

Summary:

All of the above mentioned business models have pro’s and con’s. They can all make you rich, and they can all make you broke. It all depends on you. Just remember, you only fail if you give up. Learn from any mistakes, and don’t beat yourself up over lost money (if any). Failure is part of the process. Make sure that no matter which venture you go for, you get a mentor. WWW.MICROMENTOR.ORG

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