Do you know what types of home based businesses there are?
And which one is right for you?
In essence, most types of home based businesses are a form of home based sales business.
This is basically a retail system.
You become a distributor of consumer goods or services for an established multi-level marketing (MLM) company.
Another often used name is network marketing .
Additionally, you can recruit, train and manage others to sell their products or services.
Profits are made from a percentage of your sales as well as those you recruit (your down line).
A few of the biggest MLM businesses are Avon, Tupperware,and Mary Kaye Cosmetics.
A home based party plan businesses are a sub-form of network marketing.
You also find your clients through the network of people you know. The focus can be on having a good time together, rather than on earning money, which hopefully will translate to sales!
This is a form of home based business where you (the franchisee) make a substantial investment to use the name and systems of an established business (the franchisor).
I have never owned a franchise, but usually chances of success are high in this type of home based business.
Besides the initial investment, you will make a regular payment to the franchisor. It often pays for the marketing that is done for the whole group, profit for the franchisor, administration costs for the group, as well as other things detailed by each particular franchise.
How this payment is structured is quite critical to the success of your business. I have seen agreements where a % of gross sales was taken. This is paid regardless of whether you make a profit or not!
Many traditional service businesses operate as a franchise now. There is great support if you want to focus on providing the best service rather than dealing with the back office.
However, there are also stories of failed franchise relationships. Especially, if expectations were not clearly spelled out.
CREATE YOUR OWN FRANCHISE
There is also the opportunity to create your own franchise from your own successful business model.
This is a reasonably complex and detailed process but the results should be well worth it.
Obviously when you are just starting a home business it is going to be too soon to also set up a franchise model. But this could be part of your long term plan, so will help guide your decisions along your business path.
A home based web business uses the Internet to market products and services.
Sometimes the goods are also delivered via the Internet (e.g. e-books, online training and software). Often the goods are delivered via a drop shipping arrangement.
The Internet has opened up new avenues of doing business. Suddenly you can reach the world without any geographic barriers.
If you already run a local home based business it might be useful to add an Internet presence. This can generate more leads for your existing business. It can also add additional streams of income.
Many trades people and other service businesses basically operate from home. Even though the services are delivered on the road, the office at home is the base.
A really big advantage is the lower cost of starting your business.
However, there are many hundreds of other benefits to working from home - and they will vary depending on your personal and work circumstances, as well as what you want to achieve.
These are the three main types of home based businesses. A few highly sought after home based business opportunities are:
This is obviously just the tip of the iceberg in terms of the type of home based business you could build.
You will find a whole lot of ideas here that should give you some more inspiration!
Research each job opportunity thoroughly before setting up shop from home.
Be wary of offers or opportunities that appear too good to be true. More than likely, they are. I strongly believe in the good of people and think that the fewest people want to scam you.
However, they might not be aware of your specific circumstances and fail to point out all the pitfalls.
If you need some fast cash you can use paid online surveys . Without the stress of unpaid bills, you can concentrate on building your business.
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