Charity begins at home, and for thousands of Americans, so does business.
Home-based businesses represented 52 percent of all small businesses operated in the U.S., generating combined receipts of $313.6 million, according to U.S. Small Business Administration statistics. More than 50 percent of all home-based businesses generated $25,000-$50,000 in revenue, with a small percentage tipping the $1 million mark.
To help generate ideas for potential home-based entrepreneurs, USARiseUp.com compiled a list of four home-based businesses that require an initial investment of less than $5,000. To calculate the potential start-up equipment costs, USARiseUp.com picked up the most basic supplies, and suggests further research to determine which ventures are most suitable to your aspirations.
At-Home Bookkeeping Service
Every business needs to keep track of their finances. Despite the availability of various accounting software packages, many small business owners might lack the time—or ability—to operate the software themselves. Enter the bookkeeper. The initial start-up costs for bookkeeping services are manageable, averaging less than $4,000. An accounting degree or understanding of related principles is required.
Initial Costs:
Computer: $559.99 (basic HP desktop pc)
Accounting Software: $199
Multi-function printer/fax scanner/copier: $79.99
Printing Calculator: $39.99
Paper Shredder: $49.99
Office Furniture: $1,000
Initial Marketing Budget: $1,000
Errors and omission insurance: $41.66 monthly, $500 annually
Total: $3,468.96
Pricing:
Rates for independent bookkeepers range from $25 to $40 an hour. Some bookkeeping services charge a flat fee per month rather than an hourly fee, which can range from $150 to $600 for small businesses.
Income Potential:
Based on working 1750 billable hours per year at a $25 hourly rate, independent bookkeepers earn $43,750 in annual revenues; $70,000 at a $40 hourly rate.
Tax Preparation Service
It’s been said that only two things are certain in life, death and taxes.
Congress has made more than 5,000 changes in federal tax law since the last major tax reform in 1986. These changes, coupled with the inherent need for basic income tax preparation, can present a profitable opportunity for the tax savvy or those wanting to learn.
Initial Costs:
Computer: $559.99 (basic HP desktop pc)
Multi-function printer/fax scanner/copier: $79.99
Tax Preparation Software: $250
Office Furniture: $400
Initial Marketing Budget: $1,000
Reference Materials (tax guides, CD-ROM publications of tax codes): $500
Errors and omissions insurance: $500 annually
Tax Preparation Course (for beginners): $149
Total: $3438.98
Pricing:
Pricing for basic tax preparation services can be based on an hourly rate or flat per return fee. For a simple 1040, rates can range from $75 to $125. Complex returns can be billed at an hourly rate, ranging from $50 to $200.
Income potential:
Based on preparing 700 returns at an average of $75 per return per year, independent tax preparers may earn $52,500 – $87,500 at $125 per return.
Note: Becoming an Enrolled Agent with the IRS might prove more profitable. There are no academic requirements to become an enrolled agent; individuals must pass a rigorous three-part exam administered by the IRS. The cost for the exam is $125. Enrolled agents may prepare taxes for individuals, corporations, partnerships, estates and trusts. They may also represent clients at IRS hearings.
Technical Writing
Technical writing is another potential venture for any wordsmith with a knack for technology and organization, and a desire to stay in the den. Being able to translate complex technological jargon into simple English is a sought out skill. A search for technical writing jobs on Indeed.com yielded 8,064 returns. And, demand for technical writers is expected to grow 18 percent through 2018, according to the Bureau of Labor Statistics.
Whenever any new product involving technology is released, technical writers construct manuals, instructional materials and brochures for consumers, program installers and sales people. Technical writing courses, and certificate programs, are available.
Initial Costs:
Computer: $559.99 (basic HP desktop pc)
Multi-function printer/fax scanner/copier: $79.99
Office Furniture: $400
Initial Marketing Budget: $1,000
Total: $2,550
Pricing:
Freelance technical writers command a $35-$45 hourly rate. That rate can increase to $45-$60 an hour for full-time technical writers.
Income Potential:
Technical writers may earn a $48,000 annual salary—based on 1,200 billable hours per year (24 hours per week) at $40 an hour.
Cleaning Service
The number of cleaning workers is expected to grow five percent between through 2018 That growth presents a wealth of opportunity for any home-based business hopeful.
Initial Costs:
Supplies and basic equipment (minus transportation): $2,000
Cell Phone: $80 monthly
Initial Marketing Budget: $500
Insurance and bonding: $500
Total: $3,080
Pricing:
House cleaning services can command $12-$35 an hour. Commercial jobs can generate nearly $20 an hour.
Income Potential:
Independent cleaning services can earn between $20,000 and $50,000, depending on the specialty and number of employees.
Note: Cleaning foreclosed properties, which might require more specialized equipment, may also be another viable niche market.