Quick.
What's the number one reason why most home based businesses fail? Any guesses? It's actually a simple one, and out of all the reasons why a business can fail, this one reason accounts for more than half of all business failures.
Want to know what it is? Undercapitalization.
   Undercapitalization is just a fancy way to say they ran out of money.
 "Too much month at the end of the month" as they say.
Fortunately, undercapitalization is something you can avoid.
 When most people start a home based business (or any business for that matter) they tend to think they need a lot of stuff that they really don't need.
They need that new upgraded computer and they need some new fancy business cards, and don't forget about a new desk and several new pieces of software.
  This stuff may be nice, but you don't need it yet.
 I remember several years ago I wanted a laptop but I couldn't afford to get one.
 Instead of going out and getting the laptop, I spent $50 on a used computer and worked with that instead.
  Was it ideal? No.
Did it work for what I needed?  Yes.
And three months later I had made more than enough that I could easily justify buying that laptop I wanted.
  That's what you need to remember.
 Focus all your efforts and expenditures at first on things that will directly make you money and while you're waiting for the money to come in, you need to keep your expenses to a minimum.
  If you're reading this article, you've probably got just about everything you need to start your home based business already.
 So if you've always wanted to make money with your own home based business, don't worry about the cost, it can be done for very little money these days provided you resist the temptation to buy a bunch of stuff you don't really need yet.