If you’re currently between jobs or are experiencing a reduction in your household income for whatever reason, starting a home-based business is a great option to generate additional income. The question is: is it a better option than having a second-job?
Advantages of Starting a Home-Based Business
Having a second-job may be an easier short-term option but it is just that…short-term. You will most likely burn out and have gained very few new skills that will help you become rich and build wealth. Some of the key benefits of starting a home-based business are:
1. It will teach you some of the rudimentary principles of running a business
2. You don’t have to commute to work and deal with office politics
3. You can get started quickly with almost zero capital outlay
4. You will have increased flexibility, autonomy and self-accountability
5. The income generated should be better than the pay from a second job (typically part-time jobs work of low hourly rates)
6. You should have more time to be with your family, friends and maybe even have some time to devote to your hobbies
7. You might actually like your home-based business but few people truly enjoy their second-jobs!
The # 1 Reason for Starting a Home-Based Business
Whilst all of the reasons cited above are worthy in their own right, if you genuinely want to learn how to get rich and create wealth than I think the No.1 reason for staring a home-based business is because of the business skills you will naturally develop. Apart from doing the job, you’ll learn about key business functions such as Sales, Marketing, Finance & Accounting, Operations and Human Resources.
It’s called ‘Home Based Business’ not ‘Home-Based Job’
Whether you’re planning on starting an Internet Business, an Accounting & Bookkeeping service or running a Car Mechanic shop out of your garage it’s important to recognize that you’re running a ‘business’ not a ‘job’. This is a vital distinction. Running a business requires a much broader skill set, much more planning, self-discipline, and focus than any job ever could. Being self-employed is a whole other world to being an employee. The irony is, many small business owners don’t run a business but run a self-employed job….but more on that another day!
In my view, a home-based business is a better option than having a second job. Running a home-based business most likely won’t make you a millionaire overnight (I’m not sure if anything does bar winning the lotto!) but can provide a decent living, generating income and this income can in turn be used to steadily build your wealth.
Note: Whilst earning extra money is a noble undertaking I believe that inasmuch as is humanly possible you should be looking for ways to have your earned money make money for you i.e. generate unearned income. This is wealth building. But that’s another subject for another article!