Home-Based Business: Is it Right for You?

Home-Based Business:
Is it Right for You?
One of the fastest growing markets in the United States is the home-based
business. It's interesting to note that one in four businesses located in an office or
industrial area started in the home, including such well-known companies as Mary
Kay, Hershey, Hewlett Packard, Lillian Vernon, Ford, and Apple. It has been
estimated that more than 32 million Americans are self-employed and working at
home. This does not count those who were doing so on a part-time basis while
holding a "regular" job. Part-time self-employed home workers numbered an
additional 1,000,000+.
Home-based businesses span a wide range of occupations and industries. One multi-state study
conducted by a team of university-based researchers found that the top five occupations were
marketing/sales (24%), contracting (15%), mechanical/transportation (13%), services (12%), and
professional/technical (12%). Other studies yield varying results, but they all indicate that home
businesses represent a wide range of occupations and industries.
The trend toward home-based business has occurred for several reasons. The advent of the
electronic age with its computers, fax machines, copiers and other office technology has made it
possible for almost every family to start a business from home. Job insecurities and layoffs have
forced white-collar workers to pile out of corporations. Many of these displaced middlemanagement
people have taken their skills home and translated them into viable businesses run
from their home offices. The trend toward home-based business has also been impacted by
economic considerations such as eliminating rent and utilizing other home-office deductions. As an
additional bonus, having a home-based business has allowed parents to stay home with their
families and addressed elder care and parental leave without added costs.
Home-based businesses can be very successful. They can also turn into disasters or, at the very
least, unproductive semi-attempts at dabbling at business. In order to help you get off to a good
start, we have devoted this chapter to some of the most important considerations that will contribute
to the success of your home-based business.