Why You Need To Start A Home Based Business?

You need to consider these Cold Hard Facts. Recent studies show that even though corporate America had tremendous profits and economic growth over the last decade, the majority of Americans have been experiencing an uphill battle for economic survival.

Many working people have awaken to the reality that they may not have a job with a major company, the federal, state, or city government until retirement.

American workers are now accepting to the fact that the constant layoffs means the job market is no longer a stable place for employment. Moreover, the economy is continually putting families under more pressure than ever before. Those employees who are able to keep their jobs have no guarantee of career growth or more than 2% to 3% annual salary increases. Many employees are overworked, stressed out, frustrated and undermined by oppressive boss.

There is no job security in corporate America. Millions of people are out of work searching for the same kinds of jobs their employers eliminated. Today, temporary employment services are among the largest employers. Many companies are finding it less expensive to hire temporary employees to avoid paying benefits to permanent employees.

Starting a business has two limitations: money and special knowledge. Most ordinary people only have one option, a home-based business to achieve personal freedom from the “rat-race” of corporate America.

Starting a part-time home based business can provide a financial cushion of residual income to protect yourself against future downsizing.

Home-based business is the fasted growing segment in the U.S. economy. Many people are starting home-based businesses over traditional businesses to take advantage of lucrative income opportunities and tax advantages which the tax laws allow business owners.

Studies show that of the 76 million Baby Boomers (people born 1946-1964) in the United who will all reach retirement age in the next 20 years only 7 million are financially prepared to retire. The experts projected that many of us will need $1.4 to $4.6 million in capital to meet the uncertainties of Social Security, employer pension, rising healthcare cost, and a retirement that could last to age 100 plus. If that isn’t bad enough, the current federal, state and local income taxes and various sales taxes are taking an huge bite from middle-class workers. “We are working roughly 30% of the year – a full 101 days to pay taxes.”

Today, many households need three incomes just to survive. The experts said that earning an extra $15,000 from a second job does not necessarily leave many families with much more savings after additional federal and state taxes, social security tax withholdings, transportation costs, and eating out. The added take home pay is a miniscule amount for the time, effort and hassle.

The experts also said that many people will need to work during their retirement years just to survive, and anyone who really wants to get a head financially needs to start their own business. They also concluded that when you consider the economic and tax benefits, a person would be better off earning an extra $15,000 a year in their own part-time business than earning $15,000 a year from a second job.

The truth is, in America we have two tax systems. One system chisels away wealth from the middle-class with high income taxes and sales tax. The other system helps big businesses, small businesses, and self-employed people to create tremendous wealth with incredible tax deductions. The hard-working middle class has to learn how to use the tax laws to their benefit by starting their own businesses in order to create real long-term wealth.

A study done by The Entrepreneurial Research Consortium found that over 50% of the people who are trying to start businesses never opened their businesses after investing about 2 years of time and effort exploring their vision. Most people failed to make a personal commitment and investment in their business because of the high start-up costs for traditional businesses and franchises.

There are many statistics which show that new businesses have a poor chance of succeeding, because the odds are against start-ups.

A survey by the U.S. Commerce Department shows that for every 10 small businesses, 7 will survive the first year, 3 will survive after 3 years, and only 2 will survive after 5 years. Click Commerce Department http://www.osec.doc.gov/

A study by Dun & Bradstreet show that “Businesses with fewer than 20 employees have only a 37% chance of surviving 4 years and only a 9% chance of surviving 10 years.” Click for D & B http://www.dnb.com/us/

The National Restaurant Association (NRA) shows that 80% of independently owned restaurants fail within the first two years. Click for NRA http://www.restaurant.org/

The U.S. Small Business Administration (SBA) said more than 50% of all new businesses will disappear in the first 5 years. Click for SBA http://www.sba.gov/

Other studies show that the failure rate for new businesses is around 80% in the first year and only about 50% of those that survive the first year will be in business in 5 years.

Business experts said the high failure rate for new businesses will continue in the future because “People don’t plan to fail; they fail to plan.”

Reasons For Business Failure:
1. Most people enter into business with the entrepreneur’s dream, and when they are confronted by real problems they protect their dreams instead of seeking objective help from outside sources.

2. Business owners don’t have a realistic view about whether the idea, product or service offers a solution to an unmet need.

3. Business owners don’t have the knowledge and skills to run the business.

4. Most businesses failed because they ran out of money due to poor business planning.

5. Most businesses failed because of poor location, poor customer service, untrained employees, fraud, and business owners’ reluctance to seek professional advice.

Since most people do not have the necessary knowledge, skills, and capital to start a traditional business, the option for them is to start a home-based business. Also, since most home-based ventures are not profitable for most people, then the best option is a home-based network marketing business.

The network marketing business method has a proven success track record. It requires only a few hundred dollars start-up cost and monthly marketing budget. And it offers anyone who consistently puts in the time and effort an equal chance to achieve personal freedom, wealth, and security from a steady stream of residual income.