Home Based Business: Why Start One?

Working in the usual 9 to 5 jobs does not give one the freedom which one has when one is one’s own boss with one’s own company.

But, to have your own business, you need to decide first what kind of business you can handle successfully. Most people who wish to have their own business try to be a franchisee of something, and this is a sound idea.

With franchises, you simply have to follow the plan and formula which has been laid out and followed successfully many times before. The one problem with franchises is that they are expensive.

Even though there are some franchises which cost less that $10,000, usually franchises in the United States are between $20,000 and $30,000. Franchises of really big companies cost upwards of $100,000 and this is just the fee for the franchise.

This does not include other costs such as those of retail space and construction, supplies, legal fees, payroll, insurance, advertising and marketing. Thus, if you just a normal person getting a paycheck every month, you will not be able to accumulate that much money.

Other people want to base their business on some skill which they are already a master at. For instance, if a young woman is very good at makeovers and styling people, then it would be a good idea for her to go to cosmetology school and then start up a beauty salon.

Even though this has promise, the trouble with this business is that it will have to pay for the purchase or the lease of the retail space where the business will be conducted even though the franchise fee will not be of consideration here.

The woman will also have to pay all the other overhead costs and initial fees which have to paid at the start up of any business.

Thus, for the average person, such business options which costs so much money right at the start are simply not practicable.

However, there are affordable means by which you can start your own business and be your own boss, decide the time when you wish to work and have financial independence without having to make a huge investment. This is through direct sales or network marketing.

Direct sales or network marketing is popular because:
•    Affordable: In the structures of most home-based companies, you have to make an investment of less than $1,000, while the administrative cost of starting up most home-based businesses is about $100.

The extra cost comes in with the starter kits related to different kinds of business which come in a variety of prices, depending on the type of business you are in.

•    Financial independence: You can set the hours and when you’ll work according to your own convenience and also set the standard for how your financial future will be.

•    Tax breaks: When you set up your home business properly, it will get benefits from all the tax laws which are aimed at owners of home-based businesses. Any professional such as a CPA who specializes in business tax can help you out in this field.

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