5 Myths About Home Based Businesses

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It’s not for everybody but many dream of being able to work from home. If that’s you, don’t jump in without all of the facts. We’ve put together a list of things you should know before getting started.

It’s Easier than Going to Work Each Day

Actually, the opposite is true. Think of it this way: When you work for somebody, if business is slow, the likelihood that you will have to file for bankruptcy is small. Although you have a vested interest in your company, you probably aren’t directly responsible for the health of the company.

As a home based business owner, you ARE the company. When business is slow, you suffer. When you lose a big contract, you suffer and if enough of these misfortunes add up, you could be out of business quickly. Not only are you the worker, you’re the CEO so in a sense, you have double or even triple the duties. A home based business is often more stressful and more hours than working for somebody else.

You’ll Get Rich Fast

The truth is that the home based business field is crowded. A lot of people want to do it and because of that it’s hard for even the best businesses to stand out in the crowd. The facts are that in order to get clients you will most likely have to work cheaply or even free at first to establish your reputation for quality.

If you’re selling actual products, others are too so you will have to find innovative ways to establish yourself. The average amount of time it takes for a new business to establish itself is 3 years. By most modern standards, 3 years wouldn’t be considered quick.

It’s not a real business

Just because your business has its location at the same place where you live doesn’t mean that it isn’t a real business. For that reason, your home based business should be registered as an LLC or other official designation with the state where you live. This is easily done by contacting an online business registration service. This one-time fee is extremely important as your business grows. Don’t get too far into your business without designating it as such with the state.

It’s Free

Sometimes the allure of a home based business is the idea that it doesn’t take any money to start it. The rules are the same for any business: It takes money to make money. At the very least, you’ll need office supplies, an internet connection, a small advertising budget, money to put in to any raw materials you will need and many other items you haven’t thought of.

Also remember that time is money. For every hour that you spend on your home business is time you could have spent working for somebody else. Never discount the value of your time.

You’ll Quit Your Job in a Week

Most people who start a home based business also keep their day job because the new business can’t sustain their living expenses. Don’t expect to find freedom overnight. It’s going to take a while. Continue being the best you can be in both of these areas of your life. It’s going to take a lot of time and commitment but many have done it and succeeded. Don’t give up because success doesn’t happen overnight. You’ll get there!