Many people today choose to fight unemployment by starting their own business. Of those businesses, nearly half will be run from home. What follows are some of today’s best home-based business ideas, ranked sequentially according to pre-tax profit margins.
The best spreads generally go to commodity and securities brokers. To get started, brokers need to prepare a package for the Financial Regulatory Authority and must pass at least one Series 7 exam. Once brokers are licensed, they just need a fast internet connection, some trading software, and a computer to make your business work. One way that small brokers distinguish themselves from large companies is by offering financial advice, in addition to trading services.
Another lucrative field involves software developers and problem solvers. Programmers compete against other people from all over the world, so they tend to be rigid. However, by focusing on solving business problems, programmers can establish a niche in their own communities.
Insurance agents and brokers can make huge profits outside of the office. A broker connects agents with insurance buyers and receives a commission based on a portion of the premium. An agent must register with her state and must also purchase error and omission insurance as an initial cost. Some agents work with wholesale companies, because most insurers will not work with an agent who does not generate a minimum number of clients.
Interior, industrial, and graphic designers have extremely low overhead. Most designers buy a computer and printer, and take the occasional project to a professional printer. Designers can also pay for software and website hosting services. With such low start-up costs, designers can turn a profit in a short period of time.
Another low overhead startup is a consulting service. A consultant supports a variety of businesses and organizations, and can provide guidance on a large number of topics. Consultants often charge per project, rather than per hour. When not with clients, consultants can easily complete most of the work at home.
Even in today’s economy, real estate brokers are doing well. After passing state exams and working with a licensed broker for a year, real estate agents are free to set up their own offices. Agents pay a fee to access the MLS and brokers pay an additional annual agent fee. Real estate agents make a nice commission on every property sale. With expenses this low, this is another business that, as long as sales are strong, will turn a profit quickly.
Other entrepreneurs start their own household and personal item repair services. This segment is becoming lucrative because, in today’s economy, many consumers repair their products rather than buy new ones. However, the start-up costs of this profession are higher than those of others. Often expensive equipment must be purchased and homes must have electrical upgrades to operate the equipment.
In today’s world, successful entrepreneurs demonstrate more specialized skills than ever before. Business owners tend to do better if they work for a short time in the corporate world, to better understand their field and competition. The best home-based business ideas have low start-up costs and are inexpensive to run. Even the smallest businesses can be competitive by taking advantage of the Internet.