Whatever your current situation, whether you are working for someone else or are self employed there is a very real opportunity today for you to start your own online home based business.There is a global recession going on and many of us are losing our jobs and struggling to pay the bills. Maybe your business is struggling to find new work and cash flow is killing you. Unfortunately these scenarios are commonplace today but there is a way you can start to take back some control through the power of an online home based business.What Exactly Is An Online Home Based Business?Well, they turn up in many guises and your situation will determine which one is right for you.So, let’s list a few ideas out so you start to get an understanding of exactly what an online home based business is:1. Creating your own online product
2. Internet marketing
3. eBay store
4. Membership sites
5. AdvertisingThese are just a few of the many possible online home based business ideas that you could look at. But why would you want to start one in the first place and how is this going to help you pay the bills today?Well the real power of the online world is that you have access to a global market. The reason a lot of us are struggling is because we have a limited local market. People are not spending money in these tough times and so your local business is finding it hard. But now imagine your local business went global, well now you have the entire world to market to and suddenly your business could be booming again.But hold on I hear you cry, what’s the point of marketing my business to the world if I can only supply locally? Well the power of an online home based business can easily overcome this. Whatever industry you are in I would be bold enough to say that there is a way you can supply this to a global market.Let’s take number 1 above and look at how a window cleaner for example could do this. Now this is a profession that doesn’t instantly translate to having a global market right?WrongFor instance, there is an art to cleaning windows, it is a very skilled trade and requires years of work and practice to get it right. Now there are going to be many new people out there in the world looking to start their own local business and could really benefit from the years of wisdom that you have. You can therefore write a book on the subject and sell it on eBay. If you don’t enjoy writing then get someone else to write it for you as you dictate your knowledge to them.The key benefit here is that once you’ve written it then it just keeps getting bought by new start up businesses and you only have to do it once. Your profit margin is going to be up at 70 or 80% and once it’s out there it just keeps on bringing you in money.Imagine that, in today’s tough economic times a window cleaner is making money whilst they are sleeping! And this can pretty much translate any standard business into an online home based business, you just have to think outside the box.

Product creation could be a frightening subject for a lot of Internet marketers to face. Some folks who get in the game with the intention of making a full time income are completely ignorant as to how an online business operates. One of the most profitable ways to create online cash is by creating a product that others are happy to pay for.

Product creation is legitimate method of generating money through internet marketing but many entrepreneurs get it wrong. They start by imitating their Internet marketing gurus by creating information products on Internet marketing in hopes of getting rich the way their heroes did. The problem is that they usually don’t know what they are doing and enter a highly competitive niche with very little marketing experience or connections.

Here are a few tips for effective product creation that may help you get on the right track:
Start by finding a profitable niche with low to moderate competition. If you conduct some rudimentary market research and keyword research, you’ll find many opportunities in areas that will surprise you. Amazon and eBay are two great places to brainstorm for product ideas.

Developing Your Product does not have to be a difficult project. You can find experts in the right field for your niche and pay them to write the material while an artist designs the packaging and website or blog. You can outsource the entire product creation part of the project after you conduct the research and testing to ensure profitability.

Sales and marketing strategies should be created while developing the product and learning about the market. Some experienced marketers use pay per click to drive traffic to their offer page; some folks outsource the entire marketing campaign to affiliates through ClickBank or other affiliate programs.

Product creation does not need to be hard, particularly when the merchandise is electronic. E-books, videos, audio and multi-media products sell very well. They are distributed immediately to customers electronically. Once you have a good feel for a niche market, try to service your customers with associated products and upgrades. If you want to earn money online through product creation, you must understand supply and demand. The majority of new online marketers fail miserably because they go after highly competitive markets or forget to research their chosen niche properly. You have to create your products according to the needs, wants and desires of the prospective customers.

Raising capital for a home based business is a difficult process. This is primarily due to the fact that most home based businesses are not qualified for small business administration loans. The SBA wants to see that jobs are being created with the capital that they are providing to small businesses. As such, if you are seeking debt capital for your home based business then you are generally going to need a conventional business loan, a personal loan, or a working capital line of credit. Most importantly, if you decide to go down this funding road then you are going to need to make sure that you have the appropriate collateral and credit score in place so that you are able to effectively receive the capital that you need to launch operations. As it pertains to collateral, you can expect that a bank is going to want to see that you have a substantial amount of equity in your home, retirement accounts, and vehicles. In a way, you can consider any debt obligation that you undertake to be a personal loan.One of the other ways that you can raise capital for your home based business is to use a working capital line of credit that is secured by any inventory that you are purchasing. This will ensure that you are able to acquire the goods that you need while also being able to focus your remaining financing on marketing efforts. This is especially true if you are launching an online based business that is based out of your home. An alternative to this is that if you accept credit cards via a merchant terminal then you can receive a lump sum loan based on your monthly receivables. However, this is an extremely expensive method of financing a new business. As such, you should focus on using your own savings or obtaining a standard line of credit rather than going down this road.Finally, you can always work with friends and family as it relates to obtaining the capital that you need. However, working with friends and family in order to start a home based business comes with a number of complications. Mainly, if the business does not do well or fails then these individuals will either lose their investment or you will be required to pay them back with a business that is not producing any income.In closing, you should decide which methodology is best for your in regards to raising capital for your home based business. Each type of financing scenario has its pluses and cons.