A fundamental principle of work at home entrepreneurs is understanding that $100 today will be more valuable than $100 a year from now.

When you make adjustments for inflation, the concept becomes clear. If you had purchased the domain names that have become very popular i.e. “work-at-home” or “home based business” with the .com extension, your domain name would be worth a lot of money compared to what you would have paid for it in the early days of the Internet. Also Internet services increase in price.

The cost that are available today to build a business will usually be less expensive than if you wait for 6 months to a year to start your work at home opportunity. Not only will you lose potential profits from waiting to start your business, but most services and products will cost more.

The work at home opportunity will be worth more as time and your efforts increase its value. Your return on investment will more than cover your start up costs.

The interesting thing for work at home business owners to consider is that you can increase the value of your business by investing time. A cash investment is not always required.

Some work at home entrepreneurs would rather pay someone to conduct some portion of their business activities. Having someone create a website or providing copywriting services are value added service. These activities add value to the business but require a cash outlay.

However, a new work at home entrepreneur can provide “sweat equity”. When the owner of a business does not have the funds to pay for outside services or does not want to invest money, they must do the work themselves. This is when time has to be the investment. However, the equivalent results should be achieved.

When you understand the time/value concept as you build your business, you are building a profit center that is as much an asset as a home, savings account, stocks or bonds. A home based business is an asset that can be used to increase your net worth.

The best advice that can be provided to a home based business owner is to establish this time value of money concept firmly in their minds. You can trade time for money or conversely pay money to buy back your time.

Once this key concept is applied to every phase of the business, the impact will be seen in the profit margin. The key to the success of your business may be in realizing the potential value of every dollar that comes into your hands and how you leverage it.

Sometimes the problems show up when financial decisions have to be made regarding the allocation of money. Some business owners make the choice to flitter away hundreds of dollars in cash on non-essentials and basically eat up potential profits.

Other work at home entrepreneurs do not use their time unproductive ways. Surfing the net for hours to join chat rooms or to find the latest video game is a poor use of time. This time could be used to find new customers, set up ad campaigns or to find a Joint Venture Partner. When you use your time or your money in unproductive ways, your business suffers.

Time really is money. Using the time/money principal as an effective business concept will add value to your business. The more time you spend building your business will
show in your bottom line.