The Complete Home Based

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Home Based Business: Achieve your financial independence in the global economy of the 21st century

Defining The Home Based Business

“If one advances confidently in the direction of his dreams and endeavours to live the life he has imagined, he will meet with success unimagined in common hours.” –

Thoreau

The home based business can be defined as a business

whose primary office is in the owner's home. The business can be any size or any type, as long as the office itself is

located in a home.

In the USA, there are about 6.6 million home based businesses that generate at least 50% of the owner’s

household income.

Estimates Of The Total Size Of Home Based Businesses “One study has estimated that the total number of people

who run or are employed by home based businesses in South East England is in excess of 250,000 people,

equivalent to 7% of the working population of the region (Step Ahead, 2005).”

“While the average homepreneur business has two

employees (including the owner), 39% have between two and five employees, and 10% have more than five. Using these average employment numbers, Emergent Research estimates that homepreneur businesses currently employ

roughly 13.2 million Americans, including the owner.”

Estimates Of The Total Size Of Home Based Businesses “To put these figures in perspective, let’s

compare them to U.S. employment generated by two important industrial segments:

venture-backed firms and the oil and gas industry. Analysis by the National Venture

Capital Association shows that companies that received venture capital backing —including such corporate giants as Intel, Microsoft, and

Apple — employed 10.4 million in 2006.”

The Impact Of The Development Of The Internet On The Economy And Home Based Business

The development of the internet has been and will be the big driving force in the development of the internet related home based business. Let us have a closer look at

these developments. The following information is extracts from the McKinsey report:

Extracts from the McKinsey report:

- The internet accounts for 6% of the GDP of countries like Sweden and the UK. - Over the past 5 years, the internet has contributed 21% of the GDP growth of the 13

countries that were studied. These countries represent 70% of the total GDP of the world.

- This is a reflection of the small and medium-sized enterprises receiving a

performance boost through the internet. These companies with a strong web presence grew more than twice as quickly than those with a minimal or no web presence.

- The internet has become a very significant factor in the world economy and the growth of the economy. More specifically in jobs and wealth creation.

- Online marketing represents 15% of total marketing worldwide. - The search requests by individuals on hard-to-find items or information was a total

of 1 trillion requests during 2009.

Extracts from the McKinsey report:

- In the USA, web surfers made purchases worth $250 billion in 2009; in the UK, it was $63 billion or 2.9% of the GDP. The average online shopper in the USA has spent $1 773 during the year. In the UK, $2 535 was spent on average.

- The study concludes that the influence of the internet on the economic growth in the world,

on job creation and generating wealth, is becoming more important and stronger. - For individual companies the internet lowers costs and increases revenue, productivity and

profits. The internet helps these companies to accelerate growth in the export markets and to have access to new markets.

- The introduction of broadband stimulates the development of the internet in those countries

where it is being introduced. The internet stimulates growth in GDP, in job creation, wealth, and increases productivity.

- In France, the internet has created a total of 700 000 jobs during the past 15 years.

The research of McKinsey indicates the growth in people connected to the internet, the importance of doing business via the internet, and the big influence that these

new technologies have on the GDP of the world economies.

The Influence These Developments Have On My Home Based Business

- Create new jobs. Give people an extra income stream. Have their own home based business and being self-employed. These changes create many new business opportunity. - The new technologies related to the internet will create new business models that will stimulate opportunities. - More and more trading and marketing is being done via the internet due to the development of new systems and technologies. - The improved communication systems and technology makes it cheaper, less risky, and more attractive to start a home based business.

Accurate research information is not available about the expected growth in the online home based business industry. I want to make some estimates based on

the information discussed above:

- The annual growth in people connecting to the internet is growing with about 10%. - The ability of the internet to:

The Influence These Developments Have On My Home Based Business

The influence of the development of the internet on the growth in the GDP of the countries in the McKinsey study has been higher during the last five years

than during the previous fifteen years. The trend is upwards. Many of the conclusions in this study indicate that the influence on economic growth in the

future will be higher than in the past. Some developed countries like the UK have a more people using the internet than others, for example the USA. That

indicates growth in many of the developed countries.

Due to the development and introduction of broadband in the less developed countries of the world, new trading and business opportunities will become

available.

There is a trend of more people that want to work from home, as indicated by the following quote: “Nevertheless, home based business owners are much more

satisfied with their quality of life than other small business owners. However, the majority of home based business owners do not appear to have made a

financial trade-off in order to secure this quality of life.”

The Influence These Developments Have On My Home Based Business

These new technological developments, the changes in the economic environment and changes in the social needs of people will result in a higher growth rate in internet related businesses, as well as in online home based businesses, than the 10% annual increase in people becoming connected to the internet during the next few years. If one takes into consideration that the average growth in the GDP of the world is expected to be much less than 10% per annum during this period, then there has to be good business opportunities here. This expected growth in GDP due to internet related business activities creates many online business opportunities for the online home based business owner. A fast changing economic, business, and technological environment needs quick and big action. The opportunity of today might have disappeared tomorrow. This is the environment in which to dream-it-plan-it-do-it big. Our team wants to support like-minded people that want to join us on this journey. Take action. Do not postpone in this business environment. “Screw it, let’s do it!” – Richard Branson Brought to you by: Dream-It-Plan-It-Do-It