Low Cost Home Based Business - look to the web

If you're looking for a low cost home based business, my recommendation is to look at the Internet as a good place to start. The reasons are many and varied, but if your focus is low startup and operating costs, the web might be perfectly suited for you.

Let's ignore for the moment that the Internet reaches a world-wide market and people are buying and selling just about everything on it. Let's also ignore that there are about a dozen different way to make income on the web.

Also, let's ignore for the moment that it's possible to make a good living with passive income generated on the web. Income that comes to you regularly, whether you're in the office or not.

Instead, let's just focus on one aspect of an Internet based business - cost. This shouldn't be your only deciding factor when starting a business, but startup costs and operating costs have to come into play in making a decision.

Let's face it, you're in business to make money, not spend it or put it at risk - that's making money for someone else. So, my favorite low cost home based business is one that resides on the web.

Let's look at the costs in 2009 dollars for an Internet based business that you can run from home. Costs will vary a little, but these should be good ballpark numbers. Each is expressed as an annual cost based on what I pay annually or monthly.

• Internet connection bundled with unlimited long distance VOIP phone is $850
• computer with an estimated life of 5 years is $300
• electricity estimated at $360
• phone, if separate from Internet service provider package, add $600
• office furniture estimated at $100
• materials and supplies estimated at $100
• still camera, video camera and audio equipment with an estimated life of 5 years is $300
• ideas and inspiration - no cost
• website hosting, education and tools $300

In round numbers, that's $3,000 a year, or about $250 a month, and that covers startup and operating costs. I know people that spend that much on their utility bill each month, and it has nothing to do with running a business.

If you have a computer and bundled Internet service, and you either have or can do without some of the audio-visual equipment, your annual costs drop to $1,800 a year, or about $150 a month.

Now, think of your grocery bill, utility bill, insurance and fuel for your car, or the cost of your health insurance each month. I'll bet you that each of those monthly bills are more than $150 a month, And that's just operating costs - that's not the cost to, for example, purchase and register and license the car.

So, if you're looking for a low cost home based business, I suggest you give strong consideration to a business on the web. They are very low cost to startup and operate, both of which need to be a carefully considered when going into a business.

As business startups go, it's not hard to invest $25,000 in your first few months, and that's for just a small business. At that rate, you could run a low cost home based business for about 15 years, even if you never made a dime in revenue to offset your costs.

Done with Low Cost Home Based Business, back to Internet Business Ideas