A home based business is exactly what it sounds like, a business that is run out of one's home. It can be anything from a corporate consulting service to a party plan such as Tupperware. Anyone who runs a business from the comfort of his own home is a home based business owner.

A home based business is not necessarily the same as telecommuting. Though telecommuters work at home, they may work for others. A home based business owner may be a telecommuter, but a telecommuter might not own a home based business.

Some home based businesses are franchises with familiar names. Others are consulting businesses run by professionals such as accountants or technical writers. There are even those who choose to sell baked goods or crafts. Anyone with a service to offer can operate a home based business.

In most cases, starting a home based business entails a small investment or start up cost. This can include the price of equipment, hardware and software, advertising and small expenses such as office supplies. The amount needed to start up depends on the type of home based business. Those working as consultants may not need to lay out any cash beyond what it takes to advertise. Someone offering a resume writing service could probably open shop with little or no initial investment. Someone choosing to mass market cookies will have to consider equipment and production costs.

If you're interested in becoming your own boss and operating a home based business, you'll first need to figure out what it is you'd like to do. Perhaps you have some special hobbies or talents, or maybe you possess skills such as writing or web design. You may even be a good salesperson; any of these gifts might be enough to start a home based business.

Once you know what it is you'd like to do, you'll have to do some research. Read up on your chosen profession and weigh all of the benefits and risks. Make sure your home based business is one that will be in demand ten or twenty years from now. It can be very disappointing to return to work for someone else after owning your own home based business.

Research the benefits and risks involved with taxes so there are no surprises. If equipment or labor will be expensive, you may qualify for a small business loan. Your attorney should be able to help you with most of these details.

Beginning a home based business is a brave step to take towards financial independence. As long as you know you have a marketable product and you've done the research, there's no reason why you shouldn't be a great success.