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A home based business is exactly what it sounds like, a business that is run out of a person's home. It can be anything from a corporate consulting service to a party planning agency. Anyone who runs a business from his own home is a home based business owner.
Working at a home based business is not necessarily the same as telecommuting. Though telecommuters work at home, they may work for others. Someone who owns a home business may be a telecommuter, but a telecommuter might not own the business.
Some home based businesses are franchises with familiar names, while others are consulting businesses run by professionals, such as accountants or technical writers. There are even those who choose to sell baked goods or crafts. Anyone with a service to offer can operate a business from his or her home.
In most cases, starting a home based business entails a small investment or start up cost. This can include the price of equipment, hardware and software, advertising, and small expenses such as office supplies. The amount needed to start up depends on the type of business. Those working as consultants may not need to lay out any cash beyond what it takes to advertise, for example, while someone offering a resume writing service could probably open shop with little or no initial investment. A person choosing to mass market cookies will have to consider equipment and production costs.
People who are interested in becoming their own boss and operating a home based business will first need to figure out what it is they'd like to do. Some people have special hobbies or talents, or possess skills such as writing or web design. Others may good salespeople. Any of these gifts might be enough to start a business.
Once the person knows what it is that he would like to do, he'll have to do some research. He can read up on his chosen profession and weigh all of the benefits and risks. The person needs to make sure that the business is one that will be in demand 10 or 20 years in the future. Individuals often find it very disappointing to return to work for someone else after owning their own home based business.
Potential business owners should research the benefits and risks involved with taxes so there are no surprises. If equipment or labor will be expensive, the owner should look into qualifing for a small business loan. An attorney should be able to help with most of these details.
Beginning a home based business is a brave step to take towards financial independence. As long as the person starting the business knows that he has a marketable product and has done his research, there's no reason why it shouldn't be a great success.
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