Easy Home Based Business – Myth or Reality Page

Easy Home Based Business – Myth or Reality

We have all seen the advertisements about easy home based business opportunities that just take a small initial investment and then you can make hundreds or thousands of dollars a week. Have you ever wondered if these are myth or reality? Have you wondered who these people really are that make all of this money? In this short article we will discuss a few of the myths and realities of these easy home based businesses that are advertised on the internet as well as in the local papers.

Remember the high tech boom in the late 1990s and early 2000s when the latest and greatest technologies were going to replace the existing communications capabilities. At that time, many new companies were formed and although we are over simplifying, they just needed an idea and a rough business case to find an investor willing to provide millions of dollars in investment. Many of these companies did not even make it to the product stage and never even were able to complete beta trials before they had spent all of the money and went bankrupt. The single reason for this, in the writers opinion, is they did not complete a proper business assessment before spending their investment funds.

The analogy to take away from this short review of history is that everyone, no matter how big or small, no matter what the idea, whether it is a corporation involving millions of dollars or a small home based business needs to have a business plan that is well thought out and will withstand a thorough review by any investor. Many so called easy home business opportunities may come along, however we are suggesting that the same rigorous review be applied to these ideas as well before you spend too much time and your own money in developing your business.

Before readers get discouraged, and decide that they should not enter into a home business, take a moment to consider what is being suggested. The first step is to estimate your revenue opportunity and the number and kind of customers you expect to have. How will you market your services and how much will marketing cost? You are going to have expenses that will be incurred even if you operate out of your home. What are they and how much will these operational expenses cost. Finally can you make sufficient net income to pay yourself for the effort that you put into your business and live on this income?