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
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?
$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
-$ 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
I didn’t even include day care, health insurance, clothing you need for work,
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
X $20.00 Hourly Wage
$6,240 Lost Revenue
$31,488 Take home wage from above
- $ 6,240 Hours Not Paid
$25,248 Take home (after loss
$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
control your time
control your money flow (Expenses and Income)
get tax advantages
are your own boss
decide what business to do
decide how big to grow your business
decide on what products to sell
decide when to take your vacation
decide on marketing strategies
decide on business hours
bring your skills to the table
Employees or very few
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
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
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
Once you have your Life Plan together check out Possible at Home Business Ideas.
Home Based Business Promotional Links
Business Loan Lenders Guide. Contact Information For Private Organizations And Individuals That Specialize In Making Business Loans.
Business Credit And Other EBook(R)s. The Secrets To Business Credit- No Personal Guarantee!
Done with Home Based Business Questions? Go to Home Page