Home Based Business - Why?A home based business is a business that is created and ran in the home environment. The meaning of the word business is; an occupation, work or trade in which a person is engaged in. I have successfully run numerous businesses over the years from my home. There are as many types of home based businesses as there are people. I have put together a list of various types of businesses ideas that will get your creative juices flowing just click here for them. Home businesses are growing in numbers for many reasons. The average American is paying more taxes, health care, housing, gas, maintenance and insurance costs then ever before. How do you get a tax break? Here is an example of a $20.00 an hour employee’s break down of what they are really receiving when all is said and done. I have used very conservative percentages and amounts just so we can get a better idea of the loss of earnings. What is my “Job” Really Costing Me?
Example $20.00 per hour X 40 Hours X 52 Weeks = $41,600 total Salary $41,600 Salary X 22% (State, Federal, Local Taxes) -$ 9,152 State, Federal, Taxes $32,448 Total -$ 960 (Gas and Lunches @ $4.00 per day x 5 x 48 weeks) $31,488 Take Home Wage $31,488 / 40 hours / 52 Weeks = $15.14 Approximate Hourly Wage Note: I didn’t even include day care, health insurance, clothing you need for work, car maintenance, extra cups of coffee, newspapers, tolls, time to get ready for work or even an hour lunch! Now let’s take a look at the hours you must be at the job or travel to the job. Again I kept it very conservative, not including the time it takes you to get ready before you leave. Hours that you are Not Paid. ½ Lunch each day 1 Hour drive to and from work 1 ½ x 5 days x 48 weeks 312 Hours Not Paid (commute and lunch) X $20.00 Hourly Wage $6,240 Lost Revenue in Commute and Lunch
$31,488 Take home wage from above - $ 6,240 Hours Not Paid $25,248 Take home (after loss of hours) $25,248 / 40 Hours / 52 Weeks = $12.14 per hour Note: This example is only to prove a point. To get you asking the questions I asked myself when I left the “Job”. If you really want to create more money, use your time more efficiently, and get the tax breaks to increase your income, then running a business may be right for you. Check out my page “What Skills are Needed for a Business Startup?” to help you determine if starting a home based business is right for you. Advantages of a Home Based Business Ok, what are the advantages of having my own business? First the government has written tax laws for businesses to be able to promote more business and help the economy. That means as a business entity you will be able to write off many items that you currently are not writing off. Here are a few Advantages:
As you can see it is the “You” that has the control and decides how everything comes together. What is exciting is that the business can be formed to your specifications. That is because you are the “Boss” and calling the shots. I believe that if you are a serious dedicated employee who cares about a company that isn’t even yours, then you have an important quality that can put you on the road to a home business startup. Are there different types of Home Businesses? Yes, there are two different types of models of a home based business. They both have similarities but the business setup will be different. Click on each title below to see the differences and the business startup procedures. A home based business that is not on the internet will not need all the same tools as an internet business. These tools will include various types of computer software and merchant accounts specifically for the World Wide Web. Many of the marketing strategies will be the same however you will see a difference in some of the approaches. How do I Start One? First put go to Life Plan First then Business Plan to find out exactly what it is you would like to do and how a home based business can help you to achieve the lifestyle you want. Once you have your Life Plan together check out Possible at Home Business Ideas.
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