Have you ever compared the differences between a home based business vs a work at home job?
There are some major differences between having a home business and work from home, compared to having a job that allows you to work at home. Your home is the central hub of all the operations involving a home based business, while a work from home job means your daily work is based in your home but is just a part of a outside business. Most work at home jobs involve checking or reporting to an employer, and you are working on as a freelancer or telecommuter status. Some freelancers, however, will have a home based business and they deal with clients instead of an employer. There are definitely advantages and disadvantages to both kinds of these businesses.
When you are your own boss, you don’t receive a W-2 at the end of the year, so you’re responsible for taking care of your taxes. You would deal directly with the IRS concerning your sales and income. For people who are working from home, you’ll be receiving a W-2 at year’s end from your employer, who will also send a report to the IRS. When you’ve attained a specific level of sales as a freelance worker, the employer is responsible for reporting that amount.
Needless to say, there are no health care or unemployment insurance benefits, and worker’s compensation is not available to home based businesses. Partner discounts for the purchase of benefits are available from several insurance companies, but when you are the owner of a home based business you pay for them yourself. People who telecommute and work from home might have access to benefits, but if you are a freelancer you must get your own.
The benefits of both kinds of working at home jobs is the freedom in project choice, flexible time schedule, and the added comforts of your own home. Since you are an employee when you work from home there could be some limitations from the employer. The best thing about is being at home it offers you a lot more freedom and flexibility than an office does. However, a of people who own a home business, or home workers, will discover this kind of freedom can be a double-edged sword. In your own environment it can be easy to pick up a book, put on movie, or find some other activity you enjoy. If you add procrastination to the other possible distractions, you will soon find you’re missing deadlines and producing sloppy work. If you want to be your own boss and work a home business, you need to see if you have the self-discipline it requires.
Most of the time the money you make from a home based business results from sales of a products or services. There are some out there, however, that your earnings are based totally on the number of people you can recruit into the business. These kinds of business are referred to as pyramid scams, and your success is directly connected to how many other people you recruit in under you. As each new recruit buys in, you are pushed higher up the payment ladder. In scams like these, your own products sales are usually not very important.
However, there are a lot of home based businesses that you can start on your own and be your own boss. Besides a marketing company, there’s a portrait studio or a gardening center that would let you be your own boss. It doesn’t matter what type of business you choose to open, to be your own boss you have one that keeps all the operations with in your own home.
Be sure and do your homework before deciding which kind of work you want to do – ask a lot of questions and get a feel for the work itself before you make a commitment. Today the really successful home based business owners are people who might have purchased a product and loved it so much they wanted to share it with others. However, those who want to be their own boss, and work from home, are really happy with their business in their home.
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