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When deciding to start a business, most people are extremely concerned that if they fail, they will not be able to pick up the pieces and move forward. According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year and 95% fail within the first five years. Lack of support and lack of knowledge do contribute to this statistic. Does this mean you should not try to buck these odds? Of course not. The benefits of a successful business strongly outweigh the repercussions of possibly failing at your first home business.

Let’s take a look at Bob’s situation and then a few scenarios he might face. Bob buys a computer. He sets it up on his new desk in a quiet corner of his home. Most of the time, he plays internet mult-player games, checks his e-mails, goes to some of the top news sites and spends approximately 2-3 hours every evening on the computer. He comes upon a great idea. The time he’s using to enjoy the computer for entertainment he could use to market software products that people can download for a fee. Now, scenario #1 goes like this. Bob decides he can quit his job and start marketing full-time immediately. This is a risk many people are just not willing to take, but Bob does it. He markets online 8-12 hours a day and takes phone calls and even does some advertising in the newspaper which yields great success. The next thing you know, Bob has made $10,000 his first month. Within 6 months he has grossed $100,000 and in less than a year Bob has increased his projected annual gross income to $750,000 per year. Wow! With great risk comes a very great reward.

Now let’s present scenario #2. Bob keeps his 8 hour-a-day job. He also works overtime whenever they need him too and even puts in nights and weekends which makes his company many more dollars. Bob can only find an hour a day to dedicate toward his new marketing business. He doesn’t really find the time to take many phone calls either, because he has responsibilities at work and home. Bob’s business is failing within the first couple of weeks. In fact he has spent $2000 in the first month and has made nothing. In 6 months he has learned some marketing and advertising skills and understands more about the software business, but still can find little time to get to the computer. At the 1 year mark Bob spent $3000 to attempt his small business venture. Bob then discovers, this loss actually comes off his income taxes paid. He claims the full amount as a loss. This rejuvinates him and he realizes he can turn his business around by investing more of his time into the business rather than money. He has just found the secret to successful marketing. Rather than using your time to work for money (i.e. a job) make your money for you. Bob’s second year is destined to be a great success from lessons learned.

Scenario #3 is the most common with a successful internet marketing business. Bob keeps his job. Then spends 2-3 hours a day marketing online five days a week. He takes phone calls when necessary and returns all voice messages which shows concern to his clients for their needs. By giving them what they need he gets what he needs. Bob easily makes $3,000 his first month and his first year makes a nice $200,000 income. Now, he’s ready to quit his job and work full-time at his home marketing business.

Through examining these scenarios, there should be ideas flowing and a calming effect should take place within to know that it’s not the end of the world if one’s home business struggles. Working online at home is a very good way to make an income.