There are many types of home business opportunities an individual may choose. Some of these businesses are service based, which means they are primarily focused on providing services. Others are product based, which means the business sells some type of product rather than offering a service. There are also combination businesses that both sell products and offer services. Home based business opportunities also differ in terms of whom they serve; some focus on sales to consumers, while others seek to meet business needs.
Some home based business opportunities are service based, which means their purpose is to meet a need or a selection of needs. For example, some types of home based businesses provide advice and referrals. Others may provide support a person needs, such as gift, errand, or cleaning services; babysitting services and virtual assistant businesses count as service businesses as well. It is important to note that lawn mowing, cleaning, and babysitting services can be considered home based even if the owner travels to his customers' locations to perform the work. The fact that he handles the administrative aspect of his business from home and has no other business headquarters makes it a home based business.
Other types of home based businesses are product based. The types of products a home based business may sell are as varied as those a traditional business might offer. For example, this type of business may sell computers, books, clothing, jewelry, perfume, or any product the jurisdiction allows a business to sell. Some also sell items the business owner has personally created, such as crafts, invitations, or artwork.
Often, businesses are neither strictly service based nor strictly product based; some home based business opportunities combine services with products. For example, a home based business opportunity may involve selling website creation software while also building websites for those who aren't interested in doing so on their own.
Home based business opportunities also differ in terms of their customers. Some businesses primarily sell to consumers while others focus on business-to-business sales. It is possible, however, for a business to cater to both markets. For example, a business may sell paper products to consumers at retail prices and then offer special bulk prices to business customers.
An individual may also consider home based business opportunities that are franchises or involve selling as an independent representative of a company. A franchise is a business opportunity in which a person uses an established company name and business operation plan for his own business. He has to buy the right to use the company's name and plans. As an independent sales representative, on the other hand, the home business owner usually sells a company's products and services for commissions.