Is Now a Good Time to Start a Home Based Business?

The truth is there has never been a better time!

If you’ve always wanted to start your own home/online business, this is the best time to do it. The Internet, along with other highly innovative and business friendly technologies that are available today, has made starting and running a feasible business from home significantly easier. Running these businesses has become one of the best ways to use personal skills and talents, maintain strong network contacts and earn a great income.

Home Based Business Stats

In 2005, it is estimated that these brought in around $150 million – and that’s just in North America. The home based business industry is currently one of the largest, churning in an estimated $427 billion (that’s right – billion) annually. That’s bigger than consumer goods and pharmaceuticals combined!

Is this a promising industry?

The number of entrepreneurs or business owners who turn to a home based business as their primary source of income is increasing. According to research firm IDC, the average income of households with home offices is around $63,000 annually.

It is estimated that there are at least 34 million home based offices in the U.S., with about 19 million of these income generating businesses owned by the operators. Over half of all small-sized firms and companies are stay at home businesses. This accounts for about 10% of the economy’s total receipts. In dollars, that’s approximately $314 billion.

The chances of success in a home business are generally very good. Over 50% are able to celebrate their 5th year anniversary and expand from there. It is estimated that less than 5% of home based businesses often move out eventually to expand or meet the demands of their market. The majority stay happily at home.

Advantages of Home Based Business

There are several reasons why people decide to start a home based business. These include:

1. Low start-up costs. About 44% of these businesses may be started at under $5,000 – that includes pre-start up costs, equipment and inventory. Entrepreneurs can also take advantage of low overhead expenses since there is no need to pay for office rental. For many equipment and supplies are readily available and generally affordable, which help keep costs down.

2. Flexible hours. Most businesses generally do not have the same restrictions as traditional employment. Owners can generally work as little or as much as they like and keep their own time, creating more time for family and friends.

3. Tax advantages. Home businesses are afforded certain tax write-offs and benefits, an excellent opportunity for you to save on money.

4. Explore your creativity. Many businesses are service types that use the owners’ creative skills and talents. Starting your own business from home is often an outlet for the kind of creativity that you may not always be able to use in your regular job.

5. No commuting. The opportunity of being able to sustain an internet business is a blessing to many people, especially those who have to deal with stressful daily commutes.