Starting a Home Based Business
According to the Small Business Administration (SBA), 52 percent of all small companies are home based businesses. Only about 35 percent of home based businesses have sales of at least $125,000 per year, according to estimates provided by the Small Business Administration. These statistics are quite similar to those for home based businesses conducted entirely on the internet. In fact, it is estimated that the internet has surpassed the land-based portion of the overall US economy.
The growing internet has also changed the face of entrepreneurship. Previously, internet-related businesses were more popular, and therefore had a higher rate of success. Nowadays however, more small businesses are conducting business online, due to a number of factors, including the rising costs of operating a traditional brick and mortar business. Consequently, entrepreneurs are turning away from the traditional aspects of their business and focusing more on economics and statistics, as well as technology.
Computers have also changed the way people think about running a small business. The term “ecosystem” was first used in economics to describe a network of interconnected systems, which can be analyzed using economic tools. With computers, an entrepreneur can examine customer trends, market trends, and profitability in order to make informed decisions about what to do with his company. This ability makes it easier for smaller businesses to survive in tough times.
Another factor affecting small businesses is pandemic outbreaks. It was during the SARS outbreak in China that many people lost business, friendships, and work. As the name implies, a pandemic is an unexpected outbreak of a disease outbreak. While it can be a frightening and dangerous thing, it can also be a turning point for the business world.
Small businesses can benefit by creating a social media presence on sites like Facebook, Twitter, LinkedIn, Pinterest, and Instagram. These sites can be used to promote product launches, raise capital, market existing products, and attract new customers. Additionally, many businesses use these sites as a place to network with other home business entrepreneurs. They can build relationships based on common interests and business goals. Social media has also been referred to as the “business equalizer,” because small businesses can connect with other individuals in different industries, and learn about products and services that might otherwise be considered inaccessible.
The final aspect of small business economics that entrepreneurs should consider is finance. The majority of entrepreneurs struggle with basic accounting basics, such as invoicing, billing, and keeping track of their cash flow. In fact, very few small business owners know anything about budgeting or money management. Fortunately, there are plenty of finance resources available online, including finance courses, finance software, and free online finance videos. Many entrepreneurs choose to mentor themselves, while others use finance software.
Entrepreneurs need to be aware of taxes, which can be particularly difficult for home-based businesses. However, most home based businesses do not have to pay taxes when they are engaged in their main activity, as long as the home business is not generating income and the home business itself is not using the home as its primary residence. Home owners should also be aware of what types of deductions they are eligible for and how to take advantage of them. Unfortunately, many home business owners do not take advantage of these deductions and end up owing much more in taxes than they would if they had properly taken care of their taxes.
Overall, entrepreneurs who own home-based business opportunities enjoy working from home. They save a tremendous amount of money on commuting expenses and enjoy being their own boss. They often find that the hard work is well worth the rewards. Not only does working from home provide entrepreneurs with great flexibility, it also provides them with immense freedom. Regardless of what type of business an entrepreneur decides to start, he or she will likely find that working from home offers a great deal of freedom and opportunity.