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Wednesday, December 14, 2011

Home based Business Ideas: Benefits and Challenges

There are a number of home based business ideas one can work on in order to start making extra income or part-time income. I have categorized these ideas into the following groups.

1.       Crafts Businesses
2.       Passive income Businesses
3.       Professional Services
4.       Online Part time Jobs
5.       Freelance Services
6.       E-commerce Business

Let’s start understanding these businesses one by one to see if by chance they are fitting for anyone looking for a side business or additional source of income.

1.       Crafts Business

The crafts business involves the production of handmade items such as drawings, paintings, toys, baby dolls, clothes, cardigans, even footwear and so on. There are so many products that can be made as crafts and this business is often times good for people who have hobbies that enable them express their creativity. So if you love to paint, decorate or do great things with your hands and are looking for an additional source of income then you should be giving crafts business a thought.

2.       Passive Income Business

These home based businesses often times generate residual income indefinitely. Income that comes from jobs that were done months or years ago not income that comes from every job you do. One of the best sources of passive incomes comes from internet marketing opportunities. People fail to realize the potential of the internet and the few that do are making a massive income from their blogs or websites even while they sleep in as much as the work they did initially has been several weeks, months or years ago. Internet marketing that results in residual income often takes the form of affiliate marketing and blogging although besides these one can write an ebook and publish online on a reputable book website and still make passive income. The challenge however lies in breaking into the market and dominating your niche because internet marketing is a highly competitive field.

3.       Professional Services

Are you a gifted graphic designer, web designer, programmer or expert in a particular field? You can start a home based business marketing your skills to a global audience online with your blog or website or even using a free listing website such as craigslist.com. The wonderful thing about rendering professional services is that you don’t really incur much costs and your earning potential is unlimited however you have to do a lot of marketing especially online or have a great reputation within your industry in order to make a head way in your business.

4.       Online Part time Jobs

For people who want to work from home instead, this is still a home based business. There are companies that offer people an opportunity to work from  home for instance www.elance.com is one of the world’s largest place for home based people to find work in various fields such as writing, programming, graphic design, web design among other services. Some people have even found work as customer service agents working right from home. This idea has the benefit of offering one great work and income but with domestic work possibly suffering if the job itself is very tasking.

5.       Freelance Services

This is closely related to working from home except that with freelance one is more flexible. You are you own brand and business. Look around the internet these days there are many people who render freelance services to companies as consultants. Some people write as bloggers for companies, some help companies manage and enter data while others still are programmers on their own. Freelance workers don’t have to face the hassles of regular employment but the disadvantage in it is the lack of job security. You have to make your bones as a freelancer.

6.       E-commerce Business

E-commerce businesses are gaining ground everyday as more businesses take their marketing campaigns online. Businesses are growing their presence online and many big brands are doing a lot to get their businesses, products and services to be seen by as many people as possible. For enterprising folks, companies such as ebay and amazon offer them the opportunities to start home based businesses. Some people make cool money on ebay selling used items while others make money on amazon as associates – referring paying customers to the amazon marketplace. The beauty in all this is that with e-commerce, you can conduct multi-million dollar businesses every year but still have no real office other than your home office. The drawback is in having to risk lose or waste a lot of money in marketing/advertising your website and possibly hiring professionals to do your marketing for you. But I’m not saying e-commerce isn’t lucrative only that it is highly competitive and has high operational costs.

So these are some of the home based business ideas I have classified and for which one may want to do but it all depends on what you want and can do by yourself. Just remember that as they have their benefits so too do they have challenges.

1 comment:

  1. Trust me, I am a really good writer but your blog is the ultimate. It comes out clean and fresh, with no-nonsense writing. Looking forward to more such blogs from your side. Can you send me other blog links that you have posted? My profile is available at Business Logo Design, global freelance job platform. I have earned my share of money too! I am a top rated seller at these marketplaces. Feels good.