What a Home Based Business Is
Seems like a simple question about what a home based business is. But as you begin your search for information on starting and running a home business, you'll find that different businesses start from different points of view. And you'll have different needs depending on your own view of a home business.
A home business is, among other things, a business run by one or more people out of someone's residence. The business operator is also the business owner who calls the shots, takes the risk, and enjoys the success of the business. This does not include those who work out of their home as employees of another business, such as telecommuters - though many of these issues discussed in this book apply to telecommuters as well as home business owners.
Home businesses can be further broken down into several different categories. Many magazines and books focus on the late-twentieth-century version of a home-based business: an office in a home where the proprietor offers a service to clients, such as a tax preparer, resume writer, or book editor. Walk-in customer traffic is at a minimum and is usually by appointment.
There are also more retail-oriented home businesses, in which the product or service requires a customer visit. This might be a retail craft shop, hair salon, day care, kennel, or automotive repair business. Parking and a business space apart from the home are usually requirements of this kind of home business.
Then there are the contractors, such as plumbers, electricians and landscapers. These business opportunity seekers administrate their business out of their homes but actually do the work off-site, at the customer's home or business.
Online business opportunities are also starting to pick up stream in the mainstream business world. So much so that universities and colleges offer 4 year degree programs in internet marketing. Building an online business gets easier and easier with new advances in technology and marketing. Also, the potential to create a residual stream of income is something that cannot be overlooked. Another benefit of creating an business online is that it is also a portable home business that can be controlled from a laptop computer, allowing your business to follow you no matter where in the world you happen to be.
Business opportunity seekers are one of the most common home businesses in America today. What do we mean by a hobby business? Well, simply that you have a hobby, knitting, woodworking, photography, or gardening that grows from a casual way to pass your time into an organized home business that generates revenue and incurs expenses. You may do little more than sell your products or services to friends or neighbors, or you may be regularly promoting, and advertising your hobby business to garner more and more customers, but your primary motivation is likely to be an enjoyment of the business activity.
There are a number of advantages to a hobby business. Business opportunity seekers may already have a reputation for quality work among your neighbors or among other hobbyists. That reputation can be helpful as you seek to build your business in the beginning. It's built-in good will, an important asset for any successful business.
Another advantage is that you are likely to already own many of the tools, machinery, software or other necessary items required for your business, which will minimize the initial capital outlay needed to start up. While for some businesses, commercial grade equipment will be necessary for more frequent usage, what you have on hand will likely get you started.
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The official Wikipedia definition from their webpage is:
Start Your Home Based Business
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