Small Time In Comparison To Legitimate Home Based Business: What's The Difference?
There are essentially two types of home businesses: Small time businesses
, and legitimate home based business. What's the difference? Well... There are actually quite a few differences. We've only got the time and space to list the most integral differences, of course, but each one requires different levels of responsibility and each one will reward you at different levels. Here are the primary differences.You Can Make Your Living With a Legitimate Business
You can make a comfortable living with a full fledged, legit home business. With a smalltime business... You can have a lot of fun, you can make a little extra income on the side, but... You probably won't be able to do much more with your income than have a nice steak dinner once a week, unless you use that money to invest into a bigger business plan.
A Legit Business Means More Paperwork
When you run a smaller business, selling a few items on an auction site, designing shirts for an online print shop or trying to make a little ad revenue from a viral video, you can fly under the radar. Technically, you need to report all your income to the tax man, but they're not going to come after you if you're making peanuts with a smalltime enterprise. As a somewhat-reliable rule: once you're making enough each week to pay for all your groceries, you need to file for the right licenses and keep track for tax purposes or you may get hit with fines and audits.
Legit Business Means Bigger Investment
You can start a smaller business without a dollar to your name, but a bigger business requires a bigger startup investment. Luckily, you don't need to take a loan out, and you don't need to find investors. Rather, you can start a small business for free, then take the money you earn from that, and roll that into expansion, or starting a whole new business entirely. But the rule here is: Once you've started, don't put anymore of your own income into the business, let it pay for itself.
Smalltime Business Is Easier
A smalltime company can be just for fun. Running a bigger, legit company, you have a lot more responsibilities, you have to know how to be a real business person. You don't have to go to business school for this, you can just sign up for an online course or seminar and learn everything you need to know in order to get the ball rolling.
Legit Business is, Well, Real Business
To be blunt, you can't pay the bills with smalltime business, but you can with a bigger, legitimate business. When you expand, you need to consider marketing, attaining inventory, legal issues and taxes. You need to consider whether or not you need to hire a few employees to help run things... It can be frustrating, but in the end, you have equity, you have something that's all yours, and you don't need to worry about what you're going to do when rent is due.
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