The Truth About The Cost To Start A Home Based Business

by Laura Hand on June 18, 2009

If I’ve heard this question once, I’ve heard it a thousand times… “Why does it cost money to get started in your business?”

In this article, I want to go over one of the most commonly asked questions about getting started in a home based business. Why does it cost money to start?

I suppose it’s a pretty understandable question; after all, it doesn’t cost anything to start a job right? But that’s just the thing, you’re not starting a job, you’re starting a business and all businesses cost money.

Think about it, if you were going to open a clothing store, how much money would you need to spend to get started? Well you’d need a location, clothes (duh), heating and air conditioning, electricity, counters, hangers, probably an alarm system… oh and you’d have to pay your employees.

If you want to go even smaller thing about this, what if you were opening a lemonade stand in your front yard? Surely that wouldn’t cost anything right? Well, you’d need a stand, lemons, cups, a pitcher… you get my point by now right?

All businesses cost money to start, every single one, and there is nothing illegal or unethical about that fact.

Of course, if you really were talking about opening your own traditional business, you’d be talking about an investment of thousands or even hundreds of thousands. In the case of your average home based business, you’re only talking a few hundred or less.

A very common misconception is that home based businesses take all the money you sign up with and give it to the person who signed you up. It’s almost as if they’re taking your money for no good reason at all, other than to give your upline a bonus.

This is not true. While it is true that the person who brings you into the business will usually get compensated for that, most of the money goes to operating the business for you, creating product, or sending out membership cards, providing training and customer service for you. Just your basic cost of operation.

Now let’s get back to this whole it’s not a job thing because I think that’s a very important issue that many people don’t grasp 100% upon signing up. When you get started in a home based business, you have officially become a business owner! You’re not someone with a job, you are now the CEO of your very own company.

Don’t treat your business like it’s some little “work at home thing”. Treat it as if you run a Fortune 500 Company. A company that, in the next 5 years or so, could very well pay you $150,000, $500,000 or even a million! Now doesn’t that make a start-up cost of a couple hundred dollars seem like pocket change?

Don’t let the start-up cost keep you from building the home based business of your dreams. Find the home based business that’s right for you and the sky is the limit!