Now you’re talking. If I worked out of my home, I wouldn’t have to worry about child care,” said Betty, a single mother, after hearing a presentation about business startups.
Another considering a home-based business told me, “I could save money on business attire and transportation costs and avoid the stress of the daily commute.”
People who are starting up their own businesses are likely to do so from out of their homes.
Some thinking this way confuse home-based employment with telecommuting.
One young man I counseled told of his uncle who he felt had a home-based business.
The uncle was in the advertising business. He worked three days at home doing projects on his computer and e-mailing them to his home office. He would go to this home office 75 miles away two days per week.
The uncle was a telecommuter, he was not self-employed. He was still an employee.
A home-based business does not have any other headquarters.
According to the U.S. Census Bureau there was a 23-percent increase in home-based businesses between 1990 and 2000. This is double the growth in the overall work force during the decade. As an unemployment office counselor, I noticed an increase in people seeking self-employment information as unemployment rates went up. Hard times spur entrepreneur ambitions. Will this decade of hard times rival the 1990s for home startups? Is working out of your home for you?
The Small Business Administration suggests that people considering starting a home business ask themselves these questions:
• Can I switch from home responsibilities to business work?
• Do I have the self-discipline to maintain schedules?
• Can I deal with the isolation of working from home?
• Am I a self-starter?
• Does my home have the space for a business?
• Can I identify and describe the business I want to establish?
• Is there a demand for that product or service?
• Can I successfully run the business from home?
New home-based entrepreneurs learn that their reasons for wanting a home business have a dark side. Betty, who wanted to cut child care costs, learned her young child did not understand the phrase, “Mommy is busy now.” Fred, who started a home business because he hated office politics, learned home can be a lonely place. He also grumbled about having to travel to a local copy shop to use a machine that in his old office was just 10 feet from his desk.
Does your home office have room to expand if the business succeeds? Will you want to have another person working in your home if the work is more than you can do alone?
One counselee came to me with his idea of a home-based business: “I’ve got an idea for a business I could do out of my home. A dog motel. People going away need to do something with their pets. People visiting here might want to leave their dog here for a day if they want to go somewhere Fido is not welcome.”
However, Arnie lived in a residential neighborhood and barking dogs were not likely to be popular with the neighbors. The township also might have ordinances that might prohibit such a venture.
A homeowner cannot pursue any activity they choose as a home business. The Small Business Administration suggests considering:
Zoning regulations. A city may limit what sort of business can be conducted from a residence.
Product restrictions. Most states would not permit a person to make fireworks in a home. A city or county may restrict the boarding of dogs.
The entrepreneur needs to consult an attorney. Also check with the department of labor to see if any laws and regulations apply.
A business may need to be registered or have a license.
Whatever home-based business you choose, it must be something you know how to do and like to do. Customers will expect the home-based business owners to have expertise and enthusiasm for their business.
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