When it comes to working at home for a living, you often have to call into question the viability of running a home business and all that entails. That's assuming your income is not as comfortable as you would like or want. Of course, if things are going along swimmingly, then you probably have no need of a post such as this, so I guess its really only being written to help those who need a boost.
So what should you look at in terms of the level of success of your own home business?
Primarily, you need to be aware of the gross income first and foremost. This is what will determine if you need to look at other areas to make any changes or not. Now, the actual dollar value of that income will have different consequences according to where you live.
Where You Live Matters
A country with a high cost of living will mean, obviously that you'll have to have a high gross income in order to live comfortably. Conversely, countries with a lower cost of living will allow you more room for movement. The actual level will therefore be determined by how much you need not just to live, but to cover all costs and leave some aside for a rainy day.
That leads us on to your work at home business net income, or that dollar amount that you are left with after all the business expenses have been deducted. That includes the costs of domain hosting, domain purchase and registration renewal, software purchase or lease, fees from banks and online payment systems such as PayPal etc.
It also includes your real world expenses such as office supplies, stationery, computer expenses or renewal, printer consumables cost of Internet connection etc. Then you have to factor in the cost of your home office space such as a proportion of the mortgage or rent, rates, electricity, telephone etc. Then there is setting aside a portion of your income to cover taxation.
What's Left After You Expenses?
What is left is your net income, or disposable income. Disposable income is no longer accounted in your home business, but is spent nonetheless on things like food, running the car, schooling expenses for the kids, buying clothes, entertainment and all the things that are a part of everyday life.
What's left is for holidays, savings etc.
If your home based business net income exceeds all your normal outgoings and leaves some in reserve for savings, then you can consider it successful on a moderate level. If it exceeds this and generates a large volume of excess cash, then of course it is successful on a larger scale.
If, on the other hand your net income falls short of your living expenses, then you need to look at ways to bolster it and improve its income levels in order to make up the shortfall and then to place you into a situation where you have a surplus.
That's something I'll look at in a future article.