Starting a profitable home-based business

Now a days, its getting extremely hard to make ends meet with just one income. Therefore, more and more people are looking into the possibilities of starting their own home based businesses to generate that extra income. However, you will have to evaluate for yourself whether a home-based business is the ideal situation for your needs, because working from home is not for everyone. There are many advantages to working from home, the main ones being:

* Low overhead

* Home-office tax deductions

* Flexibility of hours

* Safety in inclement weather

* Security, peace and quiet

A home-based office eliminates much of the overhead expense of a business. Your home office incurs expensive operating costs just like any business. The beauty of a home-based office is that a portion of these costs can be claimed on your income taxes. The flexibility gained in a home-based business makes them very attractive to parents of young children. If you are too ill to work, you rely on your voice mail or take the portable phone to bed and rest. You can burn the midnight oil if you lose time during the day. You can continue working through rough weather conditions outside without having to take one step into the danger zone.

The important thing is that people are doing something to make it happen.

There are many opportunities you need to be careful about. Start by doing the following:

Research - Find out for yourself, first-hand, just how many people their are in your area who are interested in your proposed product or service, and would be "willing to stand in line and pay money for it." Also, find out if what you want to base your business on has any competitors. This is known as defining your market and pinpointing your customers. This will also allow you to find out what others are charging for their products/services.

Business Plan - Regardless of what kind of business you start, you must have the capital and the available time to sustain your business through the first six months of operation. Specifically, you must not count on receiving or spending any money coming in from your business on yourself or for your bills during those first six months. All the income from your business during those first six months should be reinvested in your business in order for it to grow and reach your planned first year potential. Remember, if you plan to fail, then you fail to plan.

Does your idea have market potential? - The key to a successful and innovative idea is to identify a niche and a need in the marketplace. They are what successful marketing is all about. Take a small slice, become an expert in that area and discover if there is a need for your business.

Once you've passed that first six months milestone, you can set up a small monthly salary for yourself, and begin enjoying the fruits of your labor. But the first six months of operation for any business are critical, so do not plan to use any of the money your business generates for yourself during that period.

There are many accounting programs that can make it a lot easier for your planning stages.

Market/Advertise - Get the word out about your new business. Sent out fliers, include a business card into your bill payments, post fliers in your neighborhood supermarkets, put all business info on every stationary including your web site address. Tell a friend about your business and ask them to spread the word. Word of mouth is key. Network and communicate for your business success!
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Comments

Jack Payne said…
All the advantages you lay out are right on. Though, look out for the tax man. I.R.S. is still vigorously invrestigating home based business start-ups. First year? Audit is likely.
Hello Mr. Payne,

Yes, this true. That is why a well planned out home based business is essential for accurate financial statements to avoid that first year audit. Great point!

Thanks for sharing :)

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