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Home-Based Business

Overview

A home-based business is any business that is operated from home. This could include baking and selling pies from your home, running a baby-sitting service, freelance writing, or selling products that you store and ship from your home.

How it Works

Initially, you need to decide what you want to do, draw up a business plan, and register your business. It must be a profitable business that can be done at home. Also, make sure you have the right equipment and marketing plan. You are your boss and your servant.

Benefits

People are starting home-based businesses more than ever before. The feeling of independence you get by working from your home for yourself is one of the biggest benefits of a home-based business.
You have no employer to report to, no commute, and you can work on your own schedule instead of one set by someone else. Most home-based businesses are sole proprietorships or husband-wife partnerships. This gives the owner the ability to file business income and expenses right along with his or her personal income taxes. There is no necessity to pay fees when someone forms a corporation or another type of business.
A home-based business also has the benefit of having no overhead. You do not need a retail space, office space, or warehouse to rent, with their associated cost and there is most likely no need to hire employees.

Costs

Registering your home-based business does not require any special fees or costs. You will pay some fees associated with registering any type of business and filing a DBA, so that you can do business under your business name, if you have one. If your business name contains your full name, you may not even need a DBA.
Whatever may be the cost that you spend for your supplies and materials and/or your home office equipment, it is generally the limit of your start-up costs. Many people who decide to go into home-based businesses already have the necessary office equipment, so a home-based business is one of the most inexpensive to start.

Timing

Before you quit your job to embark on a home-based business, make sure you have enough money saved to support yourself for several months, until your business becomes profitable. It is best to run your business while you are still working to be sure it will be profitable before making the switch full-time.