10 Reasons For Starting A Home Internet Business

Why start a home internet business? People start businesses for various reasons. Many times when people think of starting a business, their mind easily focuses on ideas of doing conventional businesses. Not many people have known how profitable online businesses are. Through this, I would like to point out some of the reasons as to why you should start a home internet business.

1. Make money

The major reason for starting a home internet business is to make money. The internet has opened great opportunities to many people to make money. In fact, the richest men in the world have made their fortune from the computer and the internet. Luckily, home internet businesses do not require much in terms of investment. Just having a computer, internet access and products to sell are enough to start your online business.

2. Enjoy your hobby

Are you friends with the computer and the internet? If so then a home internet business is the best business for you. Although making money is the prime reason for starting a business, you can best benefit from it if you are passionate about it? Passion is the fuel to success in home internet businesses.

3. Keep yourself busy after retrenchment or retirement from active service.

Most people start home internet businesses to prepare themselves for retirement or retrenchment. If you are currently employed with a good salary but you are worried of retirement or being retrenched unexpectedly, the best advice for you is to start and grow slowly your business.

4. Fulfilling your desire of working for yourself.

Are you employed but dissatisfied with your current pay and the treatment you get at your work? Are you looking for financial freedom? Starting a home internet business will not only create a reliable opportunity for you to become self employed, but it will also enable you to create multiple streams of income. Remember that relying on one source of income is like putting all your eggs in one basket. When you fall, you lose all your eggs. Most successful online marketers had the same experiences, which forced them to start slowly their home internet businesses.

5. Using savings accumulated over some years.

Online business does not require much money to start. If you have saved some money and you are looking for where to invest it profitably, starting a home internet business is one of the most economic, profitable and convenient ways of investing your savings.

6. Experiencing challenges in businesses.

Are you looking forward to work or businesses that give you some challenges? Online businesses provide a lot of room for creativity. Yes, coming across challenges in life is healthy and enables many people to unlock their mind.

7. Creating a job for yourself and other family members.

Starting a home internet business can open great opportunities for you to create jobs for your family members just from your home with your computer and internet connection.

8. Render better services and develop your community.

Are you looking for jobs for the people in your community? The internet has great opportunities for all people of walks of life. You can start now your home internet business, develop it and finally use it to train and create jobs for other people in your community. For instance, you can create article writing jobs for the youth to write articles in different fields of their expertise, which you can buy and use them for your online marketing campaigns. You can only be limited by your own imagination.

9. Practicing gained skills and knowledge.

Are you skilled in anything related to online business such marketing and web designing? Are you looking forward to putting into practice your skills and knowledge? When you start a home internet business, you have high chances of succeeding. Prior knowledge is an advantage in business and it puts you ahead of others in business.

10. Establishing online your conventional business.

Do you already have a business like a salon, internet café, restaurant or something? Taking your business to another level by establishing it online is a very wise idea. Apart from selling only your products, you will widen your sources of income by selling online other affiliate products related to your home internet business niche.

Is Starting a Business For Me

Entrepreneurs start businesses at any time, regardless of the state of the economy or opinions of others. They are driven by a dream and desire to bring something of value to the market and society. And, are not afraid to experiment and fail along the way.

We are fascinated with people who make something out of nothing, invent products and show us new ways to use well-known stuff. There are individuals who are driven by grand ideas and have vision to do great things. Others are modest in their undertakings and have a simple desire to provide for their families.

Most of us have entrepreneurial qualities but for different reasons do not find ways to utilize them. The first question that comes to mind of any aspiring entrepreneur is "Is starting a business for me?"

This is a great question and deserves an honest answer. Most individuals can own and successfully operate a full-time or part-time business. Being a business owner is rewarding but a challenging endeavor.

The aspiring entrepreneur would like to know what it takes to start a business from the ground up and be a business owner. Business ownership offers many benefits such as being able to full fill a dream, seeing the fruits of your labor and directly benefiting from it, not being dependent on capricious bosses and the latest corporate restructuring. You have more control of you destiny by owning a business than working for someone else.

However, business is like a living thing and needs constant attention. In a start up stage it requires a lot of creativity, dedication and total commitment. It requires significant amount of energy to take off the ground and face the challenge and ambiguity. Even though people often are aware about the difficulties they may encounter still, tens of thousands of business are started every year in the US alone.

It is helpful to introduce some streetwise wisdom: It takes three to six months to test a business idea to find out if it is worth pursuing it and make it a business. After you successfully test your idea, it takes about three years to find out if you have a truly good business concept. And takes over ten years to become truly profitable.

Most start ups require full-time commitment. However, in many occasions a part-time business may be a better route to follow. Often family, career or civic commitments limit the time available for entrepreneurial ventures. In this situation individuals can embark in a start up as time permits. Part-time businesses it still require regular effort. For example, a hobby is suited become a part-time businesses. It requires minimum learning and can quickly produce results. However, usually would have limited market and is difficult to grow.

Another way to enter business ownership is to buy an existing business. It allows instant access to established operation, owner expertise, customers and income. However, you are buying someone's dream. Each business reflects owner personality, desires and values. Buying an established business is less risky but, does not diminish the need for commitment, effort and dedication. There is no guarantee that you will enjoy higher rate return on investment than staring your own.

Only, one that absolutely loves to work for large organizations or for others and always avoids any form of risk should not try to start or own a business. Such individual may not be able to condition his mind to small business dynamics. It is better to look for a new job, not wasting time and resources starting or buying a business.

Starting a business from the ground up needs considerable effort and resources but, is exciting and potentially very rewarding endeavor. It attracts young and old, people who want to fulfill life long dreams and ones that are looking for income to support their families. Most start ups and small businesses fail but they always allow us to gain valuable experience and help us learn a great deal about ourselves. It is worth starting a business before you are restructures out of a job or being old and never tried to fulfill a dream.

Record Keeping For a Home Based Business

To introduce this topic "Record Keeping for A Home Business", I must repeat a statement you have seen many times before in this series - "a home businesses is just that, a Business." New statement - YOU CAN'T RUN A BUSINESS WITHOUT KEEPING RECORDS! Many people planning to start a small business from their home are surprised to find that keeping records of the business is one of the requirements. It is. I can't help you there, but I can give you a few tips to make it easier.

Why do you have to keep records?:

Taxes - the most obvious reason is to prepare your tax returns. For more information about taxes I would go to the Internal Revenue Service website (irs.gov) and check three items under "Business" - "Starting a Business" - "A-Z Index For Businesses" - and, "Small Business Forms and Publications."

To monitor progress and prepare financial statements - good records help you monitor the progress of your business. What products or services are selling and returning the most profit? Did you realize positive results from your last marketing campaign? Which sales letters or landing pages are making the best conversions? Are you really making any money? We could go on and fill this page with questions, but the bottom line is that without accurate and adequate records you don't have a clue.

Customer service - there will be numerous times you will have to go back to your records to resolve a customer inquiry or provide information.

Managing cash flow - even a small home business can benefit from managing cash flow. Cash coming into the business never equals outflow. Good records let you anticipate these differences and prepare for them by making wise purchases to minimize outflow, or offering sales or new promotions to increase inflow when it is needed most.

Marketing - anyone who has been in business (any kind of business) for any length of time has heard "the money is in the list (of customers, prospects, leads)" and "test everything to see what works and what doesn't." That is excellent advice, but can't be done without keeping records.

What Records do you have to keep?

The very simple answer is all records having to do with money flow into and out of your business. A far more precise answer (having to do with tax records) will be found in the Internal Revenue Service website (irs.gov) under "Small Business" - "Starting A Business" - Record Keeping." There are, as we've seen, reasons other than taxes to keep records, so let's get back to the statement "all records having to do with money flow into and out of your business.

Money flowing into your business might be:

Money from selling your own goods or services
Commissions from selling goods or services for others
Bonuses for recruiting or special sales (Network / Internet Marketing)
Money you (or a partner) contribute into the business
Money from other sources such as borrowed from a lender or investor
Money you make from sale of all, or part of, your business

Money flowing out of your business might be:

Home expenses for that portion of your home used as an office
Payments for product to be re-sold
Payments for all services and expenses, such as marketing, advertising, supplies, accounting, education, etc. required to run your business
Payments to buy or replace business assets, such as computers etc.
Payments to yourself (or partners) in the form of a draw against equity

What is the best way to keep these records?

My experience in small business leads me to say - without hesitation - QuickBooks. I don't have space in this Article to tell you all the reasons why, but QuickBooks is a good system that eliminates repetitive record entry, is accepted by all Accountants, and is quick and so easy that even I can do the books.

One thing I can tell you about small business record keeping is this - if you don't organize your records from the start, and stay on top of your record keeping chores daily, I can almost guarantee that you will come to grief - probably sooner than later.

I'd like to leave you with eight tips CRITICAL to business record keeping success and sanity:

Never mix business and personal paperwork. For instance, by using one checkbook or credit card for business and personal use.
Make sure your records can be understood by anyone, not just yourself. I strongly suggest you use one of the widely accepted automated software record keeping systems. My personal recommendation is QuickBooks Pro.
Always use the memo section of your checks to record the specifics of the expense.
Record transactions as they occur, or at least on a daily basis. Reconcile bank statements the day you receive them. Retain all bank statements.
Get help before things get out of control. Your Accountant, or Business Counselor should be able to help, or at least point you in the right direction when help is needed.
Develop and maintain a good back up system. If you are using computer software back up daily onto disk or jump drive (my preference) and store the disk or drive in a fire resistant cabinet or other safe place. All permanent records of the business like licenses, contracts, organization filing papers, etc. which are paper documents, should be copied or scanned electronically, and stored the same way.
Unless you have a tax accounting background, plan to have your taxes prepared by an Accountant (at least the first year). Check with the Accountant to make sure you understand what records will be required, and that you will be able to supply them.
Prepare and carefully review a Profit and Loss Statement and a Balance Sheet monthly. Flaws in your record keeping system (or mistakes) will show up there, and can be corrected in a timely manner before they get overwhelming.