Two Types Of home Businesses
Copyright © Kerry Thomson
http://www.MyPlugInProfits.com



The Two Types of Home Business

There are two types of home businesses. These two types are quite different when it comes to operating the business and even handling customers. The two types of home businesses are – service and product.

Service based home businesses involves selling a service to a customer. These businesses can usually get started for a small investment. They require a lot of commitment to the customer. In a service business the customer service is very important because the customer is not only buying the service but also the interaction with the business owner. The one main concern is delivering the service to the customer. You will be responsible for making sure you can effectively deliver the product. That may involve only selling in a specific are or utilizing tools like email or downloads. You may end up having to take a computer class or getting outside help to deliver your service.

A product based home business involves selling a product to the customer. The products are the main sales point. Customer service is important but it is really the product that draws in the customer and keeps them coming back. With a product business there are two options – selling your own product or selling someone else’s product. These two options are different, as well.

Selling your own product means you have to keep inventory of the product. You have to manufacture the product and handle all the legal issues about the product. You are in complete control over every aspect of the business. You ship, handle issues and sell. Everything is your responsibility. It is a big thing to take on, but if you have a good product it can mean huge profits.

Selling someone else’s product is easier. You usually do not keep an inventory or have to ship the product. Additionally, all of the legal aspects and product stuff is handled by the manufacturer. The major downside, though, is that you usually share in the profits with the manufacturer.

As you can see, a home business means a lot of choice. How do you decide which is the best choice for you? That usually involves thinking about what you are going to sell. If you already know then you know what type of home business is best for you. However, if you do not know then you will have to go out and start brainstorming. See what options are available and figure out what you want to do.

Getting into a home business can be really rewarding. It is important, though, to choose the right type of home business. Making the wrong choice could mean you end up not happy with your business or that you have problems getting it started or running it.

Learning as much as possible about each type of home business is a great way to make sure that you end up choosing the right one. It can really make a difference in the long run. You will find that by choosing the right home business that you find it easier to make decisions, sell to the customers and develop a good business plan.



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