Starting a Home Based Business: Personal or Independent Contractor

Are you sick of the boss? Are you tired of having someone standing over your shoulder, telling you what to do and how to do it? Being self-employed is one of the best feelings in the world. When you can determine how much work you want to do and how much money you will earn there is a sense of pride that is incomparable. Starting a home based business may be an ideal option for you.

Many people consider starting their own businesses but don't know where to start. They may also be under the impression that they need a lot of money to begin. Depending on what type of business you want to open, the basic steps are relatively easy. There are also business opportunities that will allow you to work as an independent contractor of a larger company. The two choices vary greatly.
A Business of Your Own

If you decide to start a small business of your own there are steps you need to take in the beginning. The first would be to assess your skills and talents; decide which you will base your business on. The next step would be to create a business plan. This would be your personal guide to how your business is going to run. You will also need to figure out what type of business entity you will run under; most people starting a home based business list their businesses a sole proprietorships.

After all of these things are done you would need to register your business with the state to get whatever licenses and certificates you may need. If you will be selling goods, you will need a retail or reseller license. This is also when you will check into insurance policies that you may need.
The nest few steps are basically easy. You will set up your office and buy whatever equipment you may need so that you can operate smoothly. Set up your website and get your inventory situated. Be sure to have whatever shipping supplies you may need. When all is done, cut the ribbon on your website and you are open for business.

Independent Contractor

An independent contractor runs a business according to the terms that were set in a contract between them and a parent company. If a person starting a home based business chooses to be an independent contractor, they are paid by commission. They pay a set-up fee, which is determined by the company they will be selling. Independent contractors may carry inventory but most times their websites are made so that orders are forwarded to the supplier and shipped to the customer.

When it comes to starting a home based business, there are various options. Before you decide which type of business you want to start, ask yourself how much work you are willing to donate to making your business successful. Though all businesses take time and dedication, some take a little bit more than others. How successful your business is, is determined by how committed you are to it.