Most Profitable Businesses in The Home Business Industry.

Most Profitable Businesses in The Home Business Industry.

The word profit is generally understood and accepted as " money left after fixed and variable expenses."

Fixed Expenses are costs that accrue every month or quarter. They are going to be there and are the easiest to budget for, they have to be paid no matter what. These expenses include such things as building costs, which could be a lease, rent, or mortgage payment; Utilities, such as water, gas and electric, and telephone/Internet.

Variable expenses can include things like payroll, insurances, advertising, purchasing product or materials to produce the end product, tools and equipment, marketing, advertising, expense accounts and many other expenses alike. These are typically expenses that are scalable or can be reduced or increased as demand and market conditions require.

With that being said, it would make sense to say that the most profitable businesses in the home business industry would be the ones that had the lowest fixed and variable expenses along with an in demand product or service, a scalable variable expense system, and a robust commission structure.

Direct sales as a high profit example in the home business industry.

Direct sales allows you, the entrepreneur, to market a product, usually the parent companies product, at a substantial commission. You, the home based entrepreneur, don't carry the fixed expenses (warehouse, office building). You also have complete control over the variable expenses (employees, insurances, office supplies, marketing/advertising) You control your own budget!!

This principle is what actually offers the average person a shot at earning an executive level income starting with minimal out of pocket expense.

There are, in my experience, two general ways to go about earning a large income in a profitable direct sales home business.

One: You can market an inexpensive product that appeals to many and be profitable via volume.

Two: You can market a high end product that appeals to a target market and be profitable via Large profit margins.

Then, as with most things in life, there will be profitable businesses in the home based business sector that combine both and achieve a result that is more desirable. It seems balance constantly shows up in life and business.

Here is a tip: If you are marketing a product of service that requires you to personally talk to or assist another human being, market a product or service with a healthy profit margin. There are certain tasks that come along with a sale or an order fulfillment. If your going to be doing the work anyway, why not get paid what your worth?

Most profitable businesses that are home based are profitable for more significant reasons than you can read in the numbers. Leadership and communication play a huge role in home businesses being profitable and sustainable. A company with great leadership will provide an environment of achievment and can make the difference between earning 70k or 80k and earning 100k to 250k... Get the picture.

Step by step systems are huge when it comes to new home based entrepreneurs getting off to a fast start toward profitability. Every business goes through what are termed the "shake out years". It is said that it takes a business as long to get to 25% of the total yearly revenue it will realize as it does to get to 100%. When you choose to get started with a high end direct sales opportunity you are avoiding those shake out years!

What does this mean to a person looking for the most profitable home business to start? Well it means this:

Find a company that has been in business for at least 3-5 years (shake out years) and a company that has a growing vision. This is huge. Business models and strategic objectives used to be static. Meaning a group of entrepreneurs sat down, wrote a business plan, formulated a strategic objective and went to work.

The first few years were years of implementing system and stream lining processes to achieve maximum efficiency. Then the business objective was realized in the time following the shake out years.

This is not the case any more. Companies are realizing that the business world is meant to constantly change. It needs to be a "living" entity. A company with a constantly growing vision and an innovative culture will always be providing a way for the home based entrepreneur to become more an more profitable.

Thanks for reading this post. What do you think? Any ideas on profitablility? Any Questions?

Comments are welcomed.