Are you looking for a way to supplement your current income, or to start a new career? If so, then you should certainly consider launching an online home-based business. Here are some of the key benefits of such businesses:ConvenienceIf you are looking for a convenient job, then an online home-based one is definitely one of the best ones you can choose. Unquestionably, one of the most convenient aspects of such jobs is that there is no commute. Instead of taking a traditional highway to work, you can take the Information Superhighway instead! And while Internet traffic might be heavy at times, you’ll still save a ton of time and effort that you’d normally spend commuting between your home and an away-from-home office. If you have an online, home-based business, all you need is a computer and an Internet connection.CostTypically, the start-up costs of a new business can be quite staggering. That’s due to various types of expenses, including rent, salaries, equipment, materials, and so on. You can save a small fortune by starting an online home-based business. In fact, your start-up expenses might only include a PC or laptop, and an ISP. You could then spend the savings on overhead costs, to expand your business. The bottom line is that an online home-based business can improve your company’s bottom line.IndependenceIf you are tired of taking orders from a boss, then how about becoming your own boss? That is another benefit that you can enjoy if you choose to start an online business at home. Yes, extra responsibility will accompany extra independence. But if you’re willing to take on those duties, then the additional freedom you can enjoy is certainly worthwhile. As your own boss, you can make crucial decisions such as when you will start working during the day, how many hours you will put in, and so on. Having those options will definitely make working not only more bearable, but better.SecurityMore specifically, online home-based businesses provide outstanding job security. As long as your company is in the black, you will have a job. That definitely provides an edge over traditional jobs, which have become particularly vulnerable in today’s global economy. Many companies are strictly concerned about maximizing their profits, so creating and sustaining jobs oftentimes is not their highest priority. Yes, there is always a chance that your online home-based business could go kaput. However, you will have more control. And that power can definitely be an incentive to make your business as profitable as possible.PotentialOne of the main benefits of online home-based businesses is that you can basically write your own paycheck. After working decades in a traditional job, you could be “rewarded” by getting a meager pension and a plaque. On the other hand, an online home-based business can give you a better chance to achieve your financial goals. In fact, you ultimately might have the opportunity to retire decades before the traditional retirement age. You could start enjoying your golden years several years before your hair turns grey.

There is both good news and bad news when it comes to the level of small business financial literacy possessed by the average Canadian small business owner. The results of a recent small business financial literacy quiz conducted by Intuit Canada show that more than 8 out of 10 respondents failed to achieve a score of “good or basic knowledge” or better. Nearly half of these respondents revealed “well below basic knowledge.”Put another way, only 17 percent of respondents achieved a score of “very good knowledge” or better, and only 2% said they have “great knowledge.” The quiz consisted of 10 questions about business financial fundamentals, such as what is the role of the balance sheet and how can short-term cash flow be improved?What’s the Good News?That’s the bad news. The good news is that a majority of the respondents said they understand that financial management is important to the success of their business and they need to start closing the “knowledge gap.” Specifically:
42 percent said they wanted to spend more time with an accountant.
24 percent said they would benefit from information sessions with other small business owners.
22 percent said they would benefit from online tutorials.
The study indicates that small business owners’ use of financial literacy tools and resources increases their financial management confidence. Three-quarters of respondents who use financial software are confident that they have a good knowledge of accounting principles. Only 16 percent of respondents who rely on their own financial knowledge expressed this same level of confidence.Up Close and PersonalIn our position as small business financial consultants, we see the reality of these statistics up close and personal every day. Most entrepreneurs start businesses because they have particular talents or skills when it comes to manufacturing and delivering a product or providing a professional service – not because they are financial experts. However, they quickly learn that a good level of financial knowledge is very important to achieving success.It’s not uncommon for an entrepreneur to have a great business idea or product, a strong distribution system and/or sales force, a crack customer service team and raving customer reviews – only to fail because it suffered from poor cash flow.You’ve probably heard it said before that “cash flow is the lifeblood of a business” and it’s true. Companies can often withstand short-term periods of slow sales, and even unprofitability, but a lack of cash flow can prove fatal – even to companies with strong sales and high profits.Cash Flow SolutionsIf your company is suffering from poor cash flow, you owe it to yourself to speak with a small business financial consultant willing to sit down with you and help analyze your situation and suggest solutions. Often, these involve asset-based lending (ABL) solutions like factoring and accounts receivable (A/R) financing.A full-service factoring company will purchase selected receivables on an ongoing basis for a small discount to provide immediate cash flow for your business. This form of financing is widely used around the world – credit card companies are essentially doing the same thing. The elimination of a “receivables lag” can mean the difference between success and failure for businesses with a lack of working capital, or those that are operating with long or unreliable cash conversion cycles.An A/R financing company will lend to a business based on the total value of its eligible receivables. There is a subtle but important difference between this and factoring receivables outright: With A/R financing, the receivables become the primary collateral, a workable advance rate is established, and the company is able to call upon funds based on the “borrowing base” of eligible receivables.Many business owners fail to seriously consider these two options because they are unaware of how they work. They don’t realize how quick and easy it is to qualify, or the many advantages of these options over traditional financing. And many think they are simply too expensive but fail to ask themselves, “Compared to what?” The result of doing nothing is sometimes the loss of the business or bankruptcy.Don’t Be a Statistic Statistics indicate how hard it is to be a successful Canadian small business: While 85 percent of Canadian small businesses make it through the first year, only 51 percent are still around after five years. How many of these failures could have been prevented with a bit of knowledge and a stronger grasp of business financial management?If you own a business or know someone who does, you are in a position to alter the statistics directly. Start by learning about or improving your knowledge of alternative financing solutions. The success or failure of many Canadian small businesses may depend on it.

Every successful home based business has a business model that describes how the company creates, delivers and captures value to all involved. This whole process is part of a business strategy.This is an excellent time to look for an online home based business. A home based business can give you the quality of life that people only dream of. It’s an excellent way to get another stream of income, whether you want to help with finances or replace finances that have been lost during this recession.It is important to look at your opportunity and evaluate the company’s business plan.There are 8 keys that every successful business model should have. Ask yourself the following question: What is the…Purpose
Offerings
Strategies (Marketing)
Infrastructure
Organizational structure
Trading practices
Operational processes
Policies of the companyThe development of a business model originally was a basic model was the shopkeeper model. This included setting up a store in a location where potential customers would be or displaying a product or service where it would be beneficial.Over the years this business model became more sophisticated. In the early 20th century, there was the bait and hook business model. This included showing a basic product at a very low cost, sometimes at a loss (the “bait”), then charging a recurring amount for the refills, or related services (the “hook”). Some examples of this would be the razor (bait) and blades (hook), computer printers (bait) and ink cartridges (hook), and cell phones (bait) and air charges (hook). I just know you have seen ads for computers and they give you a free printer but you know that the printer is never truly free because you have to buy the ink to print to it to be of any use. Cell phones are another example, where the companies are offering free phones, but don’t you have to pay monthly fees for minutes to use the phones?In the 1950′s new business models came from McDonalds and Toyota. In the 1960′s it was from Wal-Mart and Hypermarkets. In the 1970′s FedEx and Toys R Us; the 1980′s was from Blockbuster, Home Depot and Dell Computer; the 1990′s from Southwest Airlines, Netflix, eBay, Amazon.com and Starbucks.Today, the type of business model depends on the technology that is used. For example, internet based businesses have created entirely new models that depend entirely on existing or emergent technology. Using the technology, online businesses can reach a large number of people with minimal costs.So when you search for a home based business, check to see if the company has a sound business plan. Does it have a plan that is similar to that of successful businesses? Home based businesses are a growing trend in today’s world and being online is continuing to grow even through this recession. Look for a green company that has business plan where there is an online presence.Whatever you find, you can be very successful in a home based business with a very good business plan!