Last Updated on Feb 27, 2020 by James W
Small is beautiful. But not always right? Yup, some people are of the opinion that small businesses, particularly home based small businesses, are not that beautiful given the fact that they are always struggling to make both ends meet. However, not all business organizations are facing these difficulties; some have emerged victories and are expanding their business like anything else. In fact, there are so many misconceptions surrounding home based business models that people are nowadays scared of leaving the comfort of a full time job and hoping in for a home based business model. Here in this article, I am going to demystify some of these misconceptions that are playing spoilsport with the growth of home based business models:
It is not always full time thing: The biggest misconception of a running a home based business is that people believe that they need to quit their regular day job. But this is not the case always. In fact, majority of cases, people start it as a hobby and eventually it blossoms bigger and starts generating good amount of revenues, you may then call it a day.
You Do not need to be A Warren Buffet: Another major misconception about running a home based business is that it needs huge amount of investment at the initial stage. But this is not always true. If you are offering some kind of consultancy services, you can start your home based business with a few hundred dollars. So, that means, with little capital, you can successfully run a start-up.
Experience is not a must: Who says that? If experience has been a prerequisite for running a start-up, Bill Gates would have been struggling to consolidate his financial condition. But thankfully that never happened. So I hope that I have made myself clear that experience is not a must for running a home based business. Rather what you need to have is passion for bracing something new. However, I accept the fact that you need to have firsthand experience of things like business registration, sales, accounts etc to be able to run your company; and the good news is that there are some organizations like SBA.gov, SCORE etc that offer free monitoring programs.
It is not that Time Consuming: Unless you are planning something big like dominating the niche, you are not going to face any major trouble, most likely. So, if you are planning to earn some extra income, want to pay off the debt or bills, or just wish to earn some cash to sponsor your upcoming holiday, you are good. You are not going spend your whole day to earn some extra cash. Just two or three hours a day and you are good to go.
No Muddling with Tax: Just like any other business, income generated from your small business is also fall under tax. By applying for qualified expenses, you can dramatically reduce your taxable income. You may not be aware of but licenses, insurances, mileage, equipments, accounting software etc all fall under tax deductable income. Therefore, I hope you can understand that the bottom-line is you need to have a proper income tax planning.
A small number of home based business fail: As far as the statistics are concerned, only half of the small businesses manage to survive unscathed after 5 years or so. Ok I accept the fact that the figures are not that encouraging but you need to see the bright side of things as well. It means that half of the start-ups manage to survive the initial years of struggle. So, do not get discouraged by number. If you plan carefully, do initial research and have saved something for the rainy days, you have nothing to worry about.
