As a result of the current economic situation, many people are out of work or afraid they may be out of work and considering other options. This could be a great time to get a home based business off the ground if you're motivated and prepared to make it a success.

During tough economic times, small businesses have an advantage over large companies because they can adjust to economic conditions more easily. They can add services and products, change marketing techniques, and cut expenses without going through corporate red tape that can slow the implementation process.

If you're thinking about a home business but aren't sure what type of business might be right for you, take an inventory of your skills, interests, experience and expertise, as well as compiling a list of what you truly love to do. Those lists can help you discover what type of businesses may fit with your qualifications and passions.

Online store: If you build a website, you can sell products without investing in inventory. You simply drop-ship items directly from the vendor. To start, pick a product, then contact wholesalers to find out whether they will drop-ship items. Once you've found your wholesaler, decide on your theme (e.g., children's clothing, candles, gift items) and list the items for sale on your website. When an order is placed, you collect the money from the customer, the vendor ships the product, and you pay the vendor.

As long as you negotiate a good wholesale price with the vendor and you have a reasonable markup on the item, you will make a profit with little overhead. The most difficult aspect of this type of business will be marketing the website and providing competitive prices.

Virtual assistant: If you have previous experience as an executive or administrative assistant, many people want to hire a support person on an as-needed basis. As the number of small businesses increases, the need for outsourcing will increase, especially for those with administrative skills.

Web designer: If you have an eye for design and enjoy creating, this might be your niche. Before you say you don't have the skills, check out the service offered at www.SnapPages.com. The "drag and drop" technology makes it possible for anyone to create great-looking websites without any experience. Build and host your clients' websites for only $50 per year. Try it first with SnapPages' 30-day free trial, and build a website for your own business.

Sales representative: A variety of businesses have evolved because someone invented a product. Business owners with the creativity and persistence to develop a product might not have the time or experience to get that product to retailers. As a sales representative, you could create a portfolio of products to bring to retailers.

Home staging counselor: Homes are selling at prices well below levels from a year ago and staying on the market longer. People have to have their homes in selling condition to get the most money and to sell the house quickly. A home stager can team up with a real estate agent or real estate office to help clients get their homes to show well.