Nov
04

Small Business versus Home Business

By

According to SBA.gov website ask a really good question on their small business administration website. “What do Apple Computer, Hershey’s, Mary Kay Cosmetics, and the Ford Motor Company have in commone? These well-known corporations all started out as home-based businesses. In fact, more than half of all U.S. business are based out of an owner’s home.”

Here are the facts home businesses are small businesses but not all small business are home businesses.  In reality when most people think of a small business it’s usually a mom and pop operation in their home town.  Like a small restaurant or someone with a trade working by themselves maybe an electrician, plumber, lawyer or accountant.  For most of us a small business has a physical location in town with a brick and mortar building.  It has enormous amounts of over head with that physical location and cost 100’s of 1,000’s of dollars or more.

A home business has the exact same upside as a small business with a location in town without all the risk.  It does vary a little from industry to industry but if you are in the planning stage of creating more income and wealth you might consider all the risk versus the reward.  A home business can create just as much income if not more than any other small business because the overhead, managing of an outside location takes more time and the overall cost of insurance, banking and day to day operations takes more money without the guarantee of more income.

Regardless what you do or which type of business you want to own.  Remember one of the biggest mistakes people make starting out!  They do not have a small business mentor.  You need someone with experience to help you bypass the most basic mistakes.  You need someone you can call when you need help and you need someone that will answer the phone when you call.  Look at your small business mentor’s results, the people he or she has worked with and their over all track record.  A great small business mentor will have helped others have success and those others will naturally recommend and other wise speak highly of who ever helped them.  One danger of a home business in this day and age is people can create any reality on the internet.  Always ask for references if you need to, like any successful business owner would.

To Your Success,
Stacy O’Quinn

Leave a Reply