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Rough estimates suggest that nearly half of the US households are directly or indirectly associated with a home based business. Most of us are unaware of the fact that successful home based business make more than an average American. The low cost of operating such a business has made it instantly popular. It is the positive cash flow, tax benefits and very low operating costs that makes home business such a lucrative option. Whereas, vast majorities of the business fail in their first year, only nine percent of the home based businesses succumb in the initial year.