Home-Based Businesses

Home-Based Business

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Today thousands of North Americans are starting up all kinds of home-based businesses, distributing a myriad of products and services which today generate billions of dollars in revenues. Ideas for business may come from personal experiences, hobbies or any special skills or talents that were acquired. Or there may be some special project to create.

The computer evolution as a vital business tool has had a massive impact on the way business is conducted today and no where is it more evident than in the businesses from home. The home computer and the Internet now make it possible to sell products globally from the comfort of your home.

A home-based business is simply a business which is based from home. This is not just a hobby or a casual pastime, but a serious enterprise for earning income. Like any other business it should be treated as such. Most home based businesses are sole proprietorships and require time and money from the owner. The business may be part-time or full time and may offer a service or product or both. The initial amount of money invested will depend on the chosen service and /or product.

Advantages of Home based business

  1. Low overhead, big savings on rental of separate facilities.
  2. Home expenses (mortgage interest, taxes, insurance, utilities) are tax deductible
  3. Motor vehicle expenses
  4. Possible savings on travel time
  5. Extra source of income
  6. Losses can be applied against income from other sources
  7. Income is earned income for RRSP contribution room

Some of the reasons given for starting a home business are

  1. Tax deductions (business losses)
  2. Create a source of income or extra income.
  3. Financial freedom
  4. Start up for larger venture
  5. increased family contact time
  6. Flexible hours.

Companies are turning to the Internet in increasing numbers and are willing to pay the entrepreneur to help them to market their products and services. A presence on the web is becoming a necessity for any business to grow in today's environment. This has created a wealth of opportunities from which to choose. The compensation plans vary from one company to another so each should be evaluated carefully and judged on its own merit.

Criteria for choosing a good home based business

  1. Low start up costs
  2. Product or service is in demand and brings a benefit to users
  3. Results must be measurable and reproducible
  4. Low operating costs
  5. Uses leverage

Many homebased businesses deal with multi-billion dollar markets, such as wellness and fitness, health and nutrition, anti-aging products, estate and retirement planning,environmentally friendly products and other professional services

Before you enter into any business however one should always do their due diligence in evaluating the venture.

Find out ""What You Need to Know Before you Start your Business"

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