Starting a home business is quite easy. It’s the management of the business and making sure that it’s sustainable that make it difficult. However, for those who want the financial independence and self-satisfaction associated with owning and running a business, the opportunity is worth the risk. But is the income opportunity real in home businesses? And what are the risks involved?
Advantages
Home businesses are the classic route for people who do not like to carry too much risk. Starting a home business means taking advantage of an income opportunity without the same significant costs associated with initial start-up, operations, overhead and maintenance. After all, running a business from home is way cheaper than starting a brick-and-mortar venture. Furthermore, there is no shortage of ideas when it comes to starting a home business. Anyone with a feasible product or service to sell has the potential to take advantage of this income opportunity.
The promise of being able to run your own business and completely sever your dependence on a regular job also proves to be very tempting for many individuals. This explains why many people start their own businesses from home part-time or after they leave their job.
Risks to consider
Although a home business can represent an incredible income opportunity, it does carry with it a certain number of risks. The lack of planning and appropriate training or background in the industry can overwhelm an inexperienced beginner. Lack of access to or knowledge of necessary technology can also be a disadvantage, particularly because many of the income opportunities today are Internet-based.
Location and market also play a part in a home business owner’s success, particularly if distribution of products and customer service are performed on site. With Internet-based opportunities, however, these risks are significantly reduced since they do not affect the day-to-day operations of the home-based business.
The stats you need to know
The number of home businesses has increased significantly over the years. Today, it is a $400 billion industry, capable of generating more income than pharmaceuticals, consumer goods and even car production industries. There is also an estimated 36 million home-based offices in the U.S. alone, around 70% of which are owned and run by women. Top income generated by owners of established home businesses range from a low of $60,000 to more than $1 million a year.
There’s also another good reason why people tend to choose a home business income opportunity over other types of businesses because of its life span. Seven out of 10 home-based businesses are capable of reaching the 3-year mark. That’s a significant figure, especially when compared to other types of businesses, of which less than 30% celebrate their third year anniversary.
Home businesses also tend to have a higher success rate than other types of businesses. At 70% success rate (that’s 7 entrepreneurs out of 10 reaping the fruits of their labor), that’s good enough reason why millions of people are taking the plunge and grabbing the potentially lucrative home business income opportunity that comes their way. If you count one to 11 right now, one person would already have started his own business from home.
So should you take the plunge?
The best (and only) way to know whether a home business opportunity will produce satisfactory results for you is to start one. However, that doesn’t mean grabbing just about any income opportunity that comes along. A significant number of risks can be easily lowered by simply making well-thought of and calculated risks. Some of the factors to consider are:
Feasibility of the home business opportunity
Some home business income opportunities look good on paper. Unfortunately, they can’t quite perform as well when applied.
To determine whether a home business represents a real income opportunity, it’s important to understand its significance and potential contribution to the current market. Does it have sufficient demand or could you at least create one? Is the market sustainable or is it temporary at best? Is the source or supply of the product reliable and continuous? How well will its pricing perform vis-a-vis other products in the same market?
Market
The market for a home business income opportunity affects its success. A lot of things will rely on how well the market reacts to the home business opportunity. How the market will behave in the future will also affect how the home business will perform in the long run.
Personal preparedness
A home business can only become a real income opportunity if you are prepared to manage it. Just because you are willing doesn’t automatically qualify you as a business owner. Consider your skills, background and experience. Can you use what you know and apply it to grow and sustain your home business? Will the skills you already have suffice or do you need to learn more? Do you have a sufficient network of contacts or do you still have to build one? Are you emotionally and mentally prepared for the work to come?
In my site, I recommend more than one Home Business Income Opportunity that you may want to consider. There are many Home Computer Business Opportunities that come with a very low initial investment and a full money back guarantee. So there is nothing to lose in trying many of them until you find the one that you’re comfortable with.
Sam Schneider is an expert in home based businesses and internet marketing. He owns several successful on-line businesses and helps other entrepreneurs fulfill their dreams through coaching and mentoring. His sites are full of great ideas about earning a decent living online.