Home Business Vs Traditional Business

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Wherever you go in the world, it seems as if everybody dreams of owning their very-own  business . Those that have sufficient financial resources dream of starting traditional  businesses ; while those with limited ones aim more at running less expensive home  businesses . Not everyone will eventually indulge in either but this article will attempt to define the broader lines of both so you could get started on the one that best suits you.

a- Traditional  Business :

A traditional  business  is an organizational entity which is often thought of as a store, restaurant or agency and is designed to provide consumer goods or services. Traditional  businesses  are all about huge transactions in order to pay off bills, salaries and also get owners’ worth in investment. Some of the major traditional  businesses  around are Wal-mart, Microsoft and McDonald’s.

As an owner, traditional  businesses  may be very profitable; however, it is important to note that about 60% fail early on in the process due to the high fees involved in running and marketing the  business  brand.

A French word meaning frankness and honesty, the concept of franchising rewrote the definition of traditional  business . Dating back to the early 1850s, the practice eventually came into worldwide prominence in the early nineties with the growing fast food  business . Starting in the U.S. and spreading to the rest of the world, franchise  businesses , such as Mcdonald’s and Starbucks started booming and proved to be more secure and profitable than entirely new  businesses . In return, the parent companies shared a pre-defined percentage of profit from the  business  franchises.

As an employee in a traditional  business , the ride is slightly less enjoyable. Your time and salary are managed directly by a supervisor or the human resources department. It is commonly known that most salaries barely keep their beneficiaries safe for the month and they never give you that financial edge needed to relax. That is the reason why many unsatisfied employees in traditional  businesses  choose to leave that environment for the more liberal and comfortable settings of a home  business .

To sum up, traditional  businesses  require a serious time commitment on behalf of the employee and bring in hefty investment for the owner when successful.

b- Home  business :

As its name expresses, a home  business  is simply a  business  either started or run from the comfort of one’s home. Contrary to what you may think, some  business  titans like Microsoft, Google, Apple and Xerox actually started off as home  businesses  in garages and basements.

Although innovative and profitable  business  ideas are hard to find, home  businesses  are much better solutions for financial and temporal freedom. They provide owners with huge tax benefits, no commute fees and reduce high overheads. Time-wise, this type of  business  allows its owner (employee) to benefit from a flexible time-table and schedule meetings around his free time.

The internet has also proved to be a crucial factor in home  business  development as it provides a platform for competition in the  business  world. Up until the mid 90s, this type of David and Goliath confrontation between a small  business  and a huge enterprise was practically unheard of. Nowadays, many home  businesses  actually appear higher in search engine rankings and have higher Google rankings than lots of highly profitable companies.

Not only that, but E-businesses have drastically changed the relationship between providers and customers. The internet has facilitated the sending and reception of products and payments on both ends. In five minutes, I purchased software on the net that I paid for with my credit card and obtained an email with a download link and a password. The irony is a couple of days later, I spoke to the owner of the company and found out that he developed and sold his product from home.

 Business  interactions are far simpler due to ever-developing technological advancements. This improves productivity, customer satisfaction and company profit. It is for this very reason that most home  businesses  are actually online  businesses .

Generating a revenue of more than $100 billion dollars annually in the U.S. alone, mushrooming home  businesses  have started posing quite a threat to many large scale  businesses , running away with huge deals. In fact, many huge  businesses  prefer to partner with home  business  providers to complement some of their services, like delivery and product distribution.

Whether you opt for a traditional  business  or a home  business , be sure to research your targeted market and customers, create a solid  business  plan, be innovative and implement. If you abide by your  business  instinct and develop with your market, you are destined to cash in big.


Source by Lehman Hailey

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