Getting Started - Home Based Business

There are a number of considerations when starting a Home Based Business, for instance, what type of Home Based Business you're going to apply yourself to. This, of course, will be decided for some by what they know or have some experience in. Less of a learning curve will shorten the period of time required before you begin to realize some income from your venture however, there are other things, which may make your choice for you or make another of the possibilities unworkable or unlikely to succeed.

The major considerations when choosing your Home Based Business, can be:

Experience - What do you know of any type of Home Based Business, especially an internet based one? Do you have the necessary knowledge to set up a specific type of Online Business and get it up and running, promoted and working for you? What sort of products are you experienced with? This is not imperative but I believe if you work with what you know, you stand a better chance of succeeding than if you were, say, trying to sell something with which you have never had any experience.
Website & Hosting - Although the Home Based Businesses I deal with mainly on this website are Internet based, there are online business models that don't necessarily require a 'web presence'. Therefore they don't require a website to be the 'hub' of that business. You may decide on one of the models that don't revolve around a web presence in which case you won't need to bother with this particular aspect of home based business. As I said, we don't deal much, at all, with models of this kind, but the chances are, if you are on the Net and looking at this website, you are probably thinking in terms of an Internet home based business and will require a website and will need to have it hosted.
Finances - How much money do you have to spend on your venture? How much do you need to get it up and running and begin promoting? How long do you have before you need to start earning? (If your answer to this is 'immediately' you may need to reconsider entering into ANY kind of business, whether an Online Home Based Business or not, when your need for an income is as pressing as this - I believe it would be very foolish for anyone to 'give-up' their conventional means of earning a living without an established Home Based Business to support them or an alternative means to at least keep them 'tied-over' until your Home Based Business is earning for you).
Time - How much time do you have to devote to the research, setting up, learning process and promotion of your Home Based Business? Do you have the time to devote? Will it be sufficient to allow you to do what needs to be done? (You will probably need to work in another job or business while building you Home Based Business).
Professional Assistance - Do you require the services of a professional for any part of the setting up or promotion of your Home Based Business? Website Design, Hosting, Search Engine Optimization, Marketing Advice, Promotional Services, Tutorials, Guides or eBooks in order to learn about method and practice concerning your choice of Home Based Business type, model and product.
Hardware and Software - Do you have a suitable type, size and power PC and the necessary programs and resources to access the Internet and handle, for instance, the amount processing and email you envisage? Do you have a suitable Internet Access connection and the devices required (56kbps Modem. ADSL, Cable etc)? Although many Home Based Businesses still operate on a 'dial-up modem', it can be far more efficient to have a broadband or cable connection. You need to decide if the time and work this can save will outweigh the set up and ongoing costs involved. The amount of information, programs and general data you need to download on a regular basis will be a factor in this decision. Also certain programs may be required, or at least make it much easier for you to set up and run your Home Based Business, for instance, Auto-Responders, Website Templates, Email programs, List Builders, Reciprocal Linking programs and Security related programs for your PC and website etc.
Supply and Demand - There aren't very many who haven't heard this expression. It's as important in ANY business whether it be a Online Home Based Business or 'real world' business. How much need is there for a particular product or service and how many businesses are already meeting this need? That's the principle of supply and demand. If you are lucky enough to come across something which only you can (or are willing) to supply and there is a reasonable demand for it, you are in an extraordinarily fortunate position. If there are literally hundreds or thousands supplying the same or similar products or services, as is often the case in the Online Home Based Business world, things will not be so easy. Although, don't allow this to dissuade you from your dream or goal. The Internet is continually increasing both in the amount of people who are using it to access and purchase all manner of items and in the types of products and services which are becoming available online. All forecasts indicate that growth will continue at a high rate for years to come. So there's still plenty of room and plenty of time for everyone. Although getting in on the ground floor as soon as you are able, of course, will make it easier for you to compete when things do get too crowded. You'll be established, hopefully have a name and reputation and a following and the most valuable thing of all, experience.

Domain and Hosting

If you're serious at all about your Home Based Business you will want to establish an Internet presence (at least for the vast majority of them). This can only be done with a website. Some decide to use the free website hosting services that various organisations make available (Yahoo's Geocities, Freewebsites, Freewebs etc), however, apart from a short period initially in order to get yourself acquainted with the Internet and websites etc, they are a false economy. You can't expect to get a business off the ground without the right tools and facilities and the free website and hosting outfits lack almost all of the fundamental needs you will have. You don't have your own Domain. You don't have most of the facilities that you get with a professional Hosting company like unlimited webmail in your own email account (you@yourdomain.com), databases, extensions for FrontPage and other website building and editing programs, sub-webs and sub-domains, SSL (128 bit secure server access), Forums, Guestbooks, the list is endless and you generally don't have the bandwidth and the freedom that you would get with most standard 'bottom line' Hosting deals.

The cost of a Domain and monthly hosting is not generally restrictive. For less than $40 you can be online with your own domain name and with 3 months hosting paid in advance. If $40 is restrictive, then I really do think you need to take another look at your plans for a home based business. Some will tell you that you need more disk space and/or bandwidth than you really do. Truly, to begin a Home Based Business and operate it until it is relatively successful with hundreds of daily visitors (or even thousands) takes far less than 100 Mb of disk space and 5 Gb of bandwidth. These figures are a comparatively small amount and should be included in the lowest possible hosting 'plan'. For Instance, this website contains approximately 35 pages and an image folder of around 500 Kb (which is about average) and this entire website 'weighs in' at under 3 MB, so how could you possibly need more than 100Mb of disk space?? Anyone who tells you that you do, is having a lend of you!! Our 'Website, Domain & Hosting' page has a link to an excellent hosting company (that does our hosting), which also supplies domains etc.

Of course, if you want to start using 'fancy' doodads like 'Flash' and any type of media (sounds and film clips etc), then you can use up a bit of disk space for your website. But my advice, at least in the onset, is to leave these things alone, at least until you are experienced enough to know how to use them properly and understand the effect it will have on your visitors. First of all, they will make your website load much slower. People will not wait for a site to load for more than a few seconds. They want a fast experience and there are plenty of other places for them to go if they get uptight waiting for your site to open. Secondly, I honestly have never heard of a website with 'Flash' components or Media items selling more product or selling it faster than a website which is free of this type of technology. So long as your website is clean, professional looking, informative and easy for people to navigate, you have all that you need to attract and keep visitors. Fancy visual effects never sold anything other than 'fancy visual effects'!!

I mean this quite sincerely. A domain name will cost between $8-00 and $20-00 per year, depending on where you purchase it. NEVER pay any more for your standard .com, .net, or .biz domains - anything higher is a 'rip-off', especially if it comes as part of an Affiliate deal or Business partnership arrangement. And NEVER pay more than $8 per month for a standard hosting plan. Although I know for a fact that a good 'start up' plan can cost as little as $2-99 per month, $6 to $8 seems to be the lowest plan that some of the 'well known' hosting companies offer, but these will tend to have more disk space and bandwidth that anyone would need to start a Home Based Business. You can always upgrade if you need to, there are no extra costs to do so (or there shouldn't be). Also, NEVER allow anyone to tell you you have to pay for a years hosting (you can if you want in order to get a cheaper rate). There are perfectly reputable, reliable hosting companies, which will allow you to pay by month, quarter or year.

Technical assistance service is important also (especially if you have not been involved with hosting - you may need some assistance) and so is 'up-time' (the time that a server/s is online and available - i.e. not being serviced or repaired etc). Less than ninety nine percent (99%) is unacceptable. For reasonable (in fact, excellent) rates for domain hosting see our 'Website, Domain & Hosting' page.

Home Office

In order to set up and run your Home Based Business it is best and most convenient if you are able to set up a Home Office, in which you can work in relative peace and silence. Obviously, this is just not possible for many people because of the constraints of family and home space however, if you can at least set aside an area of your bedroom or lounge room, in which you can work in relative peace, it will certainly help. Many people have their Home Based Business set up in the Garage or Cellar. This is ideal, if you have the facility.

The Tax Man

It is surprising how many people aren't aware that they can claim tax deductions for many things associated with their Home Based Business. I am not a tax consultant or Accountant, so I can't say what specific deductions can be allowed. I'm, also live in Australia, where the tax laws and practices are different from those in the U.S., Canada, U.K. and even New Zealand differs in a umber of areas. But, suffice to say, there are usually tax advantages of some kind, which involve such things as car and travel, office equipment and supplies, computers, programs and Internet access, telephone, utilities and repairs for the area of the home in which you work (even if it is the corner of your bedroom), entertaining (especially in the U.S. although not so much in Australia).

Of course, the best and only way to make sure you are getting the advantages you are entitled to, is to speak with a professional or research thoroughly yourself if you understand the tax laws and requirements etc. So many people think that because they are at home, they aren't entitled to any (or much) in the way of deductions. It can actually make the difference of you home based business being a worthwhile enterprise.

On the other side of the coin, if you receive any payments because you are disabled, unemployed, sick or an aged pensioner, in most countries you have a duty to report all your earnings. Again, I am no expert, so I can't advise about this, except to say that if you expect to get the advantages of a home based business, it's only fair that you make sure you meet all the legal (and moral) requirements with regard to any pensions, allowances or assistance you may receive.

Home Based Business Options at a Glance

There are many different types of Home Based Business. Provided you already have a reasonable (mid-range) PC and Internet access, there need not be much expense at all, at least initially. Those which don't require you to purchase or stock any kind of inventory are certainly the choice for most, as there is no need for storage space or the expense and risk involved in stock purchases. There are some opportunities, which involve you purchasing a 'starter kit' or 'raw materials' to make or assemble an item to be sold. I have never been involved in any of these 'schemes' and there may well be some which are genuine and worthwhile. However, I have heard first-hand that there are some which simply exist to get that 'first' purchase.

Be careful when being asked to pay any money for an 'opportunity'. Also be sure about schemes where you are sold (or even given) supplies to 'assemble' or make an item from. These types of home based business schemes promise to pay so much for each completed item or each dozen etc, but they also generally add something like "which meets with approval" or "which passes our quality control process". I believe that some are genuine and pay exactly what they say, but I have heard complaints of 'all' or 'almost all' of the completed items not 'passing muster' for one reason or another, leaving the person out of pocket with several days or weeks wasted.

Many people operate a Home Based Business marketing and selling their own product. It may be some 'physical' item which they make themselves, for instance, art or craft items like paintings and sculptures, porcelain and ceramic dolls, pottery, clothing and novelty items of all kinds. These, of course, require packaging and shipping but for some, this is a viable means to attain their dream of working from home, free from the constraints of working 'nine to five' for a boss.

Over the last couple of years, there has been a upsurge in the amount of 'virtual' items being marketed and sold by Home Based Business all over the world. The wonderful thing about 'virtual' items such as ebooks and computer programs is that once they are created, they are perpetually there and can be download or accessed a million times over. You never run out! All they need is to be updated or improved if need be. Some people write their own ebooks or computer programs, others sell them for a commission fee (these are called 'Affiliates') through such programs as Clickbank (see our 'Popular Choices' page for more comprehensive information on the Clickbank phenomenon)

There are also virtual 'Facilities' like those listed on our 'Resources' page like Safelists, Traffic and Banner Exchanges, Newsletters etc, which require a good deal of setting up and establishing but once up and running can be quite lucrative if promoted and managed correctly. These items are listed on our 'Resources' page because they are resources needed and used by Home Based Businesses to promote and sustain themselves, but they are also started and run by other people in Home Based Businesses. Basically anything that can be promoted and/or sold over the Internet can be done so through a Home Based Business, simply because there is no need for a 'physical' presence, that is, a shop, factory or warehouse. It's the realisation that so many have come to and decided to make their living in this exciting and independent way.

There is another way in which many people have started their Home Based Business and thrived. 'Drop Shipping' is basically where You, the Home Based Business person, advertises products on a website (or by any means on the Internet), takes orders and passes those orders onto a 'Drop Ship Warehouse' or 'Drop Shipper'. The Drop Shipper then packages and sends the item directly to the customer and bills you. You collect payment from the customer, in most cases, before you pay the shipper. Sometimes the Drop Shipper is the manufacturer themselves or an authorised warehouse. However you need to be very careful with this particular Home Based Business arrangement because there are many so-called 'Drop Shippers' around who are not authorised and who cannot supply the services they are supposed to. I strongly suggest you see our 'Drop Shipping' page for more details if you are interested in this type of Home Based Business.

Last, but certainly not least, there is probably the most common and certainly the least expensive of all the Home Based Business options - Affiliate Marketing. Basically, affiliates are 'agents' who direct customers to the website of a merchant/s (someone selling something) and are paid a commission for each buyer they are responsible for sending. This is done in a number of ways but the most common is through a website, which more often than not is specific to a particular subject or product and the affiliate uses their website as a means to first attract visitors and then direct them to the product they may be looking to purchase. An excellent ebook guide to this particular type of business is the New 2005 Edition of Stephen Brennan's "The Affiliate Guide Book", reasonably priced at $21-95. We recommend you click on the link and read a little more about it.

Regardless of what type of Home Based Business you decide to engage in, you can rest assured that it will be exciting and an experience which can bring you to your dream of being totally financially independent and creating a better and more fulfilling life for yourself working from home, less hours per day, among your loved ones, out of the 'rat race'.

You can read a little more about the more popular types of Home Based Business on our 'Popular Choices' page or you can go straight to our 'Home Based Business Opportunities' page for some recommended specific opportunities you might like to consider. Don't forget, if you have any questions or wish to contact us about anything contained in these pages, please us our 'Contact' form. We'll be glad to answer your questions.