Home-based business is a $427 billion a year industry, greater than the pharmaceuticals, consumers goods, and food industries combined. This fast-growing segment of the economy has great appeal, but it also has its risks.
Why do people decide to work at home? Some budding entrepreneurs take setbacks such as layoffs or medical problems as opportunities to be independent and start their own businesses. A management consultant decides to open his own office after an illness in order to set his own schedule and reduce stress. A retired government worker doesn’t make enough money from her retirement, but doesn’t want a full-time job.
For some, starting a home-based business is the fulfillment of a dream, an opportunity to gain income from a personal skill or interest. Others enter into a home-based business by necessity, having lost a job or incurred a disability that keeps them out of a conventional work setting.
No matter why they start a home-based business, these entrepreneurs face some unique work situations. On the negative side, a home-based business takes up space in the home, which could cause family conflicts. There are no fringe benefits — no sick time, vacation time, health benefits and no one to cover for you. There are startup costs and no financial stability at first. Working at home takes great personal discipline to keep to the task and not get distracted. And there’s no one to share the risks.
There are many legitimate online business opportunities, but there are also scams. Investigate thoroughly before you sign anything. Look at all ads and marketing materials. What are the earnings claims and how are they backed up? Find out the number and percentage of previous purchasers who achieved the earnings goals. Get names of at least ten purchasers; interview them to find out their experience with the business. Contact the government agencies that license or oversee the business, as well as business and consumer organizations. Find out if the business has any record of illegal activity or unresolved complaints.
Whether the work is supported by computer technology or performed entirely on the computer, the world of the internet is a major force in home-based businesses. As with any busy opportunity it’s important to distinguish the reputable businesses from the scams. Check with chambers of commerce and government agencies to see if the company has a good record of compliance and consumer satisfaction. Talk with current owners to see if their earnings match the company’s earnings claims. Get a fully audited financial statement from the company. If you don’t understand it, get help from an accountant or a lawyer. Then compare different companies to find the best deal.
There are plenty of options for buying into a business. The internet is full of such opportunities. There is online business that offers free startup courses to interested people. Many of the internet businesses are perfectly legitimate, but some of them are scams. It’s important to be able to tell the good ones from the bad. Ask about their earnings claims. Get names of people who have already bought into the business and ask them for their experience with the company. Have their earnings matched or exceeded the stated earnings claims? Check with government regulations and consumer and business organizations to see if there are any black marks against this company.
Eight-five percent of home-based businesses are still in business after three years. It takes a lot of work, but the opportunity is there. Do your homework and take your time and you too can work where you live.
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