I have always had this question burning in my mind. What amount of Home business are actually successful? Why are some of the reasons why they fail? Why do some of them succeed? The truth is everyone loves the idea of owning their own business, living a worry free life, having enough money to support themselves and their family. Yet, do you have the drive, determination and hunger to succeed.

What is a home based business?

Funny but the answer really seems a lot more simple than it actually is. Yes, a home business is a business ran from the comfort of someone's home, but it still is a business thus needs a license as well as some employees(in this case it will usually be close friends and family). Home business usually lack a large store front advertisement as well as parking lot for customers. Over the years the idea of home based business have become more reputable before especially with the successful giants such as: Apple Computer and Amazon.

Reasons why Home Based Business Fail/Succeed?

The ugly truth about why home based business fail, is because of(drum roll pleases) people honestly start their home business for the absolute wrong reasons. If you are starting your business for the money, or status you probably will not succeed. Both of these reasons will leave you high and dry when failure and negativity begin to spring up. If you are going to start a home based business you need to start it based off of an passion, a passion so deep and powerful that it fills you up at night, you go to sleep doing it and wake up to it.

New business seem to fail because of the lack of management expertise. In the words of my father you do not learn to run a railroad by watching the trains leave the station. Most new business do not understand the fundamentals of finance, purchasing and hiring employees(keeping a payroll as well). There is a lot more to running a business than having a product.

Two more crucial mistakes that new business make is lack of capital as well as location. The start up fee of most business will run you thousands of dollars that you may not have, in which cause you will have to take out a business loan with the hopes of your business taking off,in order to repay the loans. Location, where you are is a very important part of successful businesses if your business is located in a dangerous neighborhood, or located in a hard to reach location your may have less customers coming in no matter how good the product is.

Hopefully this article has made you think about the qualities needed to start a business. If you believe you have what it takes there is plenty of room for you to may a living in this every growing, as well as diverse society we live in.