As wages stagnate and Americans look for new ways to supplement their household income or escape the 9-to-5 life, the small home-based business is booming.
According to the most recent numbers from the U.S. Census Bureau, there were 23 million businesses without paid employees in the United States in 2013, up 24 percent from 2003 and 1.2 percent from the year before. Altogether, these businesses earned $1.1 trillion in 2013 -- a $21.1 billion increase from 2012, according to the Census Bureau.
And while, together, these non-employer businesses are raking in more than a trillion dollars, the ventures often are mom-and-pop shops and tiny home-based business, launched from entrepreneurs look for ways to earn extra money without spending a lot of it. The U.S. Small Business Administration says 52 percent of all small businesses are based at home.
From their home-based business, these individuals are building all kinds of ventures, taking advantage of their skills and training to boost their incomes. Some are developing software, creating websites or providing lawn care services; others are planning events, baking birthday cakes or providing daycare for frazzled parents.
They aren’t all earning millions, but they are making big impacts on their budgets. According to a survey from Bankrate, of those who work monthly on a side business, about 36 percent earn an extra $500 each month. That’s $6,000 a year. The average revenue for a non-employer business owner, most likely working full-time on an enterprise, was about $45,000, according to the U.S. Census Bureau.
Sounds great? Great! But, before you make the leap to home-based business owner, here are four questions to ask yourself.
Home-based business has allowed many to improve their family’s financial health. With them, they earn extra money to pay off debt, buy a new home, save for retirement or simply cover daily living expenses without going into debt. But, before the launch, make sure you go in with your eyes wide open, aware of the risks and ready for the possibilities.
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