The Truth About Starting a Home-Based Business

How to Start a Home-based Business Without Going Broke, Getting Scammed or Losing Your Mind

The sales pitches can be very enticing:
Work at home for as little as three hours a day!
Make money in your "spare" time!
Have the life you've always dreamed of by working at home!

Who wouldn't want to run a business based out of their home after hearing sales pitches like this? But before you tell your boss where to go, know this: starting a home-based business takes dedication, research, loads of time, money and a fair amount of cocky attitude. Sounds like work, doesn't it? It is! But if you are serious about starting a home-based business, here is the truth about what it takes, how much it costs and who is trying to scam you.

Home-Based Business Facts

• In 2005, there were 25.8 million small businesses. Of that number, 18-38 million were home-based businesses, depending on who compiled the statistics.
  


• Also in 2005, 671,800 small business opened their doors, and 544,800 closed their doors.
  


• About 70% of home-based businesses will last over a three-year period, compared to 29% of other business ventures, according to the Home-Based Business Institute.
  


• In 2000 nearly 20,000 people grossed more than $1 million operating a home-based business.
  

Choosing the Right Business for You

Some of you may have a particular talent or skill that is perfect for launching a home-based business: writer, legal consultant, caterer, accountant, etc. Some of you are not so lucky. You may want to start a business, but are not sure what business to pick or where to start. For those of you in this boat, here are a few tips:

• Choose something that you will happily be able to do day in and day out.
  
  


• Don’t pick something just because it is the newest trend or you heard that a friend is making lots of money at it. This is something that will take up lots of your time and probably some of your money, too.
  
  


• Think about your skills and your interests. Then do some searching online or at the library for home-based business ideas and see if one leaps out at you. Love animals? What about a grooming business or pet sitting? Trained as an administrative assistant? Offer your skills as a virtual secretary or local consultant. You get the idea!