Home Business Information

Count the Cost of a Home Based Business

Many people get themselves so excited over the prospect of starting a new home business, they forget that there are costs associated with EVERY business venture, even "so called" FREE opportunities. Most every new business venture has "potential", but there is always the possibility that you could end up heading down the "wrong path" and end up in a place you NEVER intended when you first started your new business.

Proper examination of your new business structure and proper planning of its management are crucial to avoiding the pitfalls that many fall prey to. But, let's consider the alternative - possible outcomes of starting down the wrong home business path as a result of poor planning and/or inadequate examination.

First, if the business doesn't succeed in bringing a profit in the first few years (at least), you could very easily end up in debt up to your eyebrows. You'd probably be surprised at the number of "entrepreneurs" that have ended up broke and in debt because their ill-fated business venture sapped them dry. Many end up filing for bankruptcy which has an effect on every business and financial transaction they attempt for YEARS down the road.

A "bad" business experience could easily land you in divorce court. Financial burdens like those listed above are typical causes. Long hours away from family (or WITH family that doesn't want to be there every waking minute) trying to keep the business afloat. Arguments with your spouse over where and how the money is being spent. Many marriages have been torn apart by this sort of thing.

And what about the health effects of going down this path. How much stress can a person realistically deal with day after day? Financial stress over whether the business is going to "make it" and whether next month's rent will get paid. Emotional stress from not getting enough time with family.

Of course, there is also the physical stress from too many long days and short nights. Additional physical stress caused by poor eating habits (which are very common among people who have so little time on their hands).

Many people seeking to begin a new business don't think about all of those issues. All they can think about is the new freedom they're going to have and the increased income. The dollar signs in their eyes keep them from seeing all the potential traps a home business brings with it.

Count the potential cost of your new business BEFORE you begin and make sure you're willing to pay that price. Moreover, remember that money is NOT the only potential cost and could be the least of the costs associated with your new home business.

What Could Go Wrong?

Plenty. How about the "up and coming" 2 month old MLM company you just signed up with went belly up immediately following your purchase of $1000 in product and a $500 display for a local trade show. What now?

Or, you decided to break into the wholesale/retail business. So, you just purchased $2,000 in gold-plated techno widgets. Unfortunately, last night on "60 Minutes" a report on your brand of gold-plated techno widgets showed that they're junk. Now, you've got $2,000 worth of inventory that most people won't buy and you'd feel terrible selling anyway.

Or maybe you've been spending every waking hour the last 6 months creating, modifying and promoting a website for your new business (because the company you've gotten involved with doesn't offer a website or any significant promotional tools).

Your business is making some money, but your spouse could care less. Quite frankly, your spouse wishes you had stuck with your 9 to 5 and your kids are beginning to wonder if you moved out.

You definitely do NOT want to become one of these examples, and I hope you'll do everything in your power to make sure you don't.

Road to Riches or Path to Ruin?

A new home business could be the most likely "road to riches" for you. However, it could also be the "path to ruin" through which you destroy your financial future as well as your family. Be careful. That doesn't mean you shouldn't take any risk. In most cases rewards are directly proportional to the risk taken. Just make sure any risks you take in your new business are well thought out and weighed carefully.

# posted by Medical Information : 2:49 AM