Home-based businesses have a lot of relevance in the present economy. Recession and the consequent layoffs have made home-based business seem like a sensible option. The Internal Revenue Service (IRS) has made it much easier for people to claim deductions for a business based at home. People operating a business from home have the right to deduct the cost of mortgage payments, rent and cost of repairs, and maintenance for the portion of the house that is being used for the purpose of conducting business. Easy availability of software that helps people manage their personal finances and home-based business by keeping a track of income, expenses, and possible deductions, that can be claimed, is helping people effectively manage their home-based business. In fact, the U.S. Small Business Administration (SBA), which was created in 1953 as an independent agency of the federal government to assist small business concerns, is offering an automated self-assessment tool that can help people evaluate their readiness to start a small business. The test, which would take less than 5 minutes to complete, will also direct people to appropriate SBA resources to help them in their quest to launch a small business from the comfort of their home.
Businesses to Bank upon at Home
The following ideas can help people start a business from the comfort of their home.
Caring for the Elderly
- This is a great option for people who want to earn money without investing any. Of course, a job like this requires a lot of patience. The reason this is a good business proposition is because many people in the U.S., are living well into their eighties and nineties.
- Keeping this in mind, people are buying long-term care insurance that would help them pay for home care facility, assisted living, or nursing home facility. Being taken care of at home is extremely expensive.
- Despite this, 42% of the benefits claimed by the long-term care insurance policy owners is for home care, 27.5% of the claims are to help pay for assisted living, and the remaining are for the purpose of funding skilled nursing home care.
- The monthly cost of being taken care of at home is around USD 3,050. So, a person who is genuinely interested in taking care of the elderly can make a decent living by choosing this line of work.
Direct Selling by becoming a Representative for a Cosmetics Company
- The cosmetics business is considered recession-proof since people want to pamper themselves, especially when they are feeling low. Becoming a representative for a company like Avon or Mary Kay costs very little money.
- Avon, the largest direct sales company in the world, has been in business for over 100 years. In fact, despite growing concerns over recession, the fourth quarter of 2008 witnessed a 80% increase in Avon's net income.
- Spending a bit of money on signing up, getting the brochure and samples is an inexpensive investment. The net income for the first quarter of 2009 was 117 million. Although the net income decreased by 36%, as compared to the first quarter net income for 2008, the number of Avon representatives increased by 7% during the same period.
- The representatives earn 25 to 50% of retail price as commission on sales. The biggest advantage of becoming a representative is that companies are actively recruiting!
- Becoming a franchisee is advisable for people who have money but are reluctant to invest in a start-up during recession. Franchises do not have to be expensive. There are a number of low cost options.
- It's always advisable to go with a well-known company that has been franchising for a long time. Many franchises are willing to provide the necessary training to help people work from home. People can opt for either a low cost, part-time, or full-time franchise. In fact, its perfectly legal to operate a franchise from home.
The above list of home-based businesses is not comprehensive. Before starting a business at home, one should ensure that one has purchased an insurance for the business. A homeowners insurance policy will not suffice. Moreover, any liability that may arise from the operation of a home-based business is not covered by the homeowners insurance policy. People should also be cautious while claiming deductions for their business based at home from the IRS, since only a reasonable amount of deductions are allowed.