With all of the information and commercials out there for ways to make money from home, the phrases "home business" and "work at home job" have become virtually interchangeable. This can be misleading, though, since these are actually two distinct things that are unique in themselves.

A home business is like any other business. The person running it is responsible for customers and the running of the business. A home business can be based around a unique product that the owner has created themself, or they could be selling products from other companies. Often home business owners will buy products wholesale directly from a manufacturer. These manufacturers sometimes offer drop- shipping, wherein the home business owner is simply an intermediary and doesn't have to worry about stocking inventory or sending out the products themselves. They simply sell the products, then give the order info to their supplier. The supplier then ships out the product directly to the customer.

The fundamental difference between a home business owner and someone working from home is that the home business owner is not assigned work. They are responsible for their own actions and handle such things as what to do, when, and how. They also handle their own pay and are fully responsible for managing their own business.

On the other hand, people who work an at-home job are just like any other employee. They are given assignments, and they are told what they need to do and when. They have to abide by their company's rules and have to work within a schedule and set limitations. They cannot hire their own employees, and are responsible to a supervisor. They can complete their work from the comfort of their home and then usually submit it to their company through the internet. Many times people working from home are independent contractors. This means that the company they are working for retains them for a certain amount of time, but does not guarantee continuous work, or a continual income.

The confusion about the differences between a home business and work at home jobs is common. However, it can lead to home business owners getting into situations where they find themselves overwhelmed by the amount of work they need to do. It can also be frustrating for people working stay- at-home jobs because they may be expecting more freedom. That is why the difference between these two types of employment is important to grasp.

Chase Davenport is an Associate Partner at Madison & Monroe, the internet's premier source for online moneymaking information, products, and reviews.

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