In my e-book "Home Business Secrets - 14 Facts You Must Know Before Starting a Business From Home", I talk about the difference between a home business and a home based business.

Though these terms seem to be used interchangeably, they are quite different, as you will see.  I'm also going to address where "home based business opportunities"  fit into this scenario.

In lay man's term, the difference between a home business and a home based business is where you conduct your business.  For instance, if you're a representative of a party plan company, your business is home-based.  What this means is that your home is your base, but not where your primary business activity takes place.  Your primary business activity takes place at the hostesses' home, not yours.

Another example of a home based business is when I had my jewelry design business.  Though I designed and crafted my jewelry at home, I sold my designs at art and craft shows in the Houston and surrounding area. 

A true home business is primarily conducted at home. While you may go out to networking or leads meetings, and you exchange your products and services for money primarily from home.

If you run an Internet business, or work as a Virtual Assistant, or software programmer and you can earn money without leaving your home, that is a home business.

Is one better than the other?  No.  But it's important that you understand the difference when you are trying to select a business.

For instance, you will probably have more expenses with a home based business, because you are leaving the home to conduct business.  Let's assume you drive 20 miles a day to get to a hostess' home.  With gas at $2.00 or more a gallon, car expenses would be higher with a home based business than a home business.

What's the Difference Between a Home Business
And A Home Based Business Opportunity?

These terms are also used interchangeably.  Let me explain the difference.

About four years ago, I worked with a client in Houston who was an artist.  Susan worked full time, but wanted to be able to support herself in her art.  On the surface, this is difficult to do....ever heard of those "Starving Artist" sales?  They aren't kidding.

I helped Susan develop a part time business in this way:

1.  We were able to barter her services for free advertising.  I lined her up with some home builders and she provided murals in children's rooms in exchange for the builders displaying her brochures and business cards.

2.  I knew that the majority of people visiting model homes are not necessarily in the market for a home.  Many look around to get decorating ideas.

3.  Susan started picking up work pretty quickly and, soon, was busy almost every weekend.  Within six months, she had enough future business on her books that she was able to quit her full time job.

4.  From establishing her expertise with her clients, she was also able to introduce them to her more traditional art work and has started to build a clientele for her paintings.

She has a home business.  She must develop her "product", find suppliers, price it, promote it, deliver it, and collect for it.

Now, contrast this with a home based business opportunity like a network marketing company, affiliate programs, or a home based franchise.

The main difference is that (if you are dealing with a quality company), the company has already developed the product, the pricing, the delivery system, promotional materials, training materials, and collection vehicles.

One of the best training grounds for starting your own business, is by first working in a home based business opportunity.  Use it not only as a way to earn money, but as a training vehicle.  Study how the promotional material is put together, what is covered in training and think of how you could relate this to your own business.

Another benefit of a home based business opportunity as a starting point is that you can start one for significantly less than a business you start from scratch.  Use this small investment to see if you are really cut out for a business, before you invest thousands or tens of thousands of dollars in your own business.

With a home based business opportunity, you'll also receive corporate and, possibly, team support.  If you're having difficulty with a particular issue, help is on the way.  You have like-minded individuals to brainstorm with.  You have people who have a vested interest in your success.

I contrast this to my jewelry business.  When I first got started with arts and crafts show, I was searching for other good shows.  I learned quickly to ask vendors who were NOT in the jewelry business, as I found they were less than honest with me.  Think about it.....why would they want additional competitors at a good show? 

If you are just starting your search for some type of business to operate, my suggestion is to seriously look at a home based business opportunity, for the reasons outlined above.  It's a perfect way for you to learn the ropes without risking a large amount of money, and be able to attend the "Home Business Academy" for free!

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