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Home businesses are usually started out of a "response" to some kind of situation. Where that response originates from, is usually a good determinate of whether or not a business is going to be healthy for its owners.

As you ponder whether or not starting a home business is right for you, start by examining where your "response" is coming from. Why does it sound so nice to be your own boss? What is the situation you are changing by becoming an entrepreneur?

Here are some responses you should be particularly wary of:

Are You Responding To A Job You Hate?
Starting a home business because you can't stand your current job, is akin to dating on the rebound. While we might initially be enthralled with a certain business idea, our enthusiasm can fade just as quickly as it came.

A better first response to a frustrating job is to take some time off, or perhaps request a change in roles at your existing company.

Are You Responding To Your Finances Being Tight?
There is nothing wrong with moonlighting to earn some extra income. But, leaving your existing job, with its consistent paycheck can be a big mistake. This is especially true when you realize that many home businesses can take up to two years to show a profit.

Additionally, the costs of starting a home business can easily range into the tens of thousands of dollars. Even if you manage to get a loan for this amount, the addition of a monthly loan payment may end up being the straw that breaks the camel's back.

Are You Bored and Feeling Restless?
The need to feel productive can be profound for stay-at-home parents. A cottage business may be a great answer for some people. But, it's easy to underestimate the amount of time and energy it will really take. There are plenty of business owners who long for the simplicity of their previous lives, but have to continue due to the amount of money they've committed to the business.

Are You A Soon-To-Be Parent Who Plans On Staying Home?
It's hard for some of us to imagine going from multi-tasking at work, to sitting at home with a child. Further, it's easy to over-estimate the amount of energy and free time you'll have. A natural response is to consider starting a home business, in addition to being a new parent.

The reality is, every new child adds new surprises. Whether it's the sheer exhaustion of having a new baby, or the chaos of having multiple kids, it can be more than most parents bargain for.

If you would like to be a stay at home parent, as well as a business owner, you should tackle each of those separately. Become a parent first and get your bearings, before you commit to the rigors of being an entrepreneur.

It's important to remember, that none of these situations disqualify you from being a successful and healthy home business owner. They should however, bring a moment of pause and reflection, which includes an honest assessment of your motivations and capabilities.

Make sure to get input and feedback from those who know you the best. Continue to ask yourself, "Why might this business be a bad idea for me in particular?"

Learn more about this author, Ken Clark.
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