It’s Home Suite Home for Brave Entrepreneurs
Home-based entrepreneurship is attracting growing numbers of recruits to its ranks. These “open-collar workers” come from a variety of backgrounds: lifelong entrepreneurs, homemakers, downsized workers, graduate students, stay-at-home parents, homebound disabled people and retirees. But their goals are similar: to be their own bosses, work flexible hours and devote their efforts to projects they love.
It takes an industrious risk-taker to be a successful home-based entrepreneur. Currently, about 25 million Americans (including 12 million part-timers) are taking the plunge, according to self-employment gurus Paul and Sarah Edwards, authors of “Working From Home: Everything You Need to Know About Living and Working Under the Same Roof” and “The Best Home Businesses for the 21st Century” (both Tarcher/Putnam, 1999).
Marianna Wechsler, 52, is one such individual. Though her husband, Stefan, earns a good salary as an engineer, the La Habra resident hoped to pull in extra income to help the couple’s three college-age children with their educational expenses.
She wanted to earn at least $15,000 annually but wasn’t sure how. She had spent years as a homemaker, taught piano to children and did art projects such as portraits, Old Master reproductions and decorative furniture painting.
With the help of Sherman Oaks-based career coach Adele Scheele, Wechsler forged a plan. Because she loves creating art, she decided to turn her hobby into a home-based business. Over the last few months, at Scheele’s recommendation, she’s investigated the local art market, presented her work to gallery owners and interior designers, reviewed Internet art-buying sites and read art magazines. To be competitive as a merchant, she researched pricing and compared her work with that of other artists.
Slowly, Wechsler is racking up commissions and marketing her work throughout Southern California. Building up a full-time, home-based business will take time--typically two to five years, said Priscilla Huff, author of “101 Best Home-Business Success Secrets for Women” (Prima Publishing, 1999). So for now, Wechsler also spends two days a week teaching piano, charging about $15 an hour.
“Everything is crystallizing,” she said. “I have so many projects going on, and I’m very excited. It will take time, but I think I’m going to get my goals.”
Could you succeed at running a home-based business? If you’re an organized self-starter who works independently and doesn’t mind being relatively isolated during your workday, this could be an option for you, Sarah Edwards said.
You must be able to establish strong boundaries between your professional and personal life, said Cheryl Demas, author of “The Work-at-Home Mom’s Guide to Home Business” (Hazen Publishing, 2000). During the workday, you can’t succumb to diversions such as housework, personal calls, television-watching and shopping. They’ll translate into lost earnings.
If you have children, arrange care for them so you can conduct business without interruption, Huff said. Should money be tight, consider asking neighborhood parents about starting a “child-sitting co-op,” in which members take turns minding children.
Realize that, at the beginning, you’ll be a one-person show: president, secretary and employee. When things go wrong, there won’t be technical support, human resources counselors or supervisors to help you.
“When people first start home businesses, many are shocked to realize just how many things were taken care of by their companies,” said Ruth Luban, author of “Are You a Corporate Refugee: A Survival Guide for Downsized, Disillusioned and Displaced Workers” (Penguin, 2001).
Which home-based business is right for you?
“One of the biggest mistakes people can make is asking, ‘What’s the hottest thing I can do to make a lot of money?’ ” Sarah Edwards said.
Don’t choose the latest new thing as your home-based business project. When the going gets tough, you’ll give up on it. Instead, select a vocation that you love, are skilled in and perhaps are uniquely qualified to do.
Some budding home-based entrepreneurs get into trouble by juggling two or more businesses at once. Unable to devote sufficient time and energy to each, they end up abandoning all of them.
Even if you feel proficient at several endeavors, force yourself to focus on just one, Sarah Edwards said. More than half of new businesses fail within five years. You’ll need to rally your best efforts to make yours succeed.
Once you’ve selected a business niche, conduct a market study. Who are your target customers? Who are your competitors? What are they charging? Can you provide products or services that aren’t otherwise available?
Answer these questions in a detailed business plan. You’ll need to project how much cash you’ll need for your first six months of operation. Don’t jump in without making sure you can adequately finance the concern during this time. Check your local zoning laws to be certain you can conduct your chosen business from home.
As you get started, network with professionals in your industry and stay current about market trends. Join trade associations, attend conferences and go to seminars.
Your marketing strategies also will be critical to the success of your business.
“But it’s one of the greatest stumbling blocks for most people,” Paul Edwards said. “Some make the mistake of taking a single action, then waiting for the world to come to them.”
Determine the most effective ways to get your potential customers’ attention. Before you launch a Web site or pay for expensive advertisements and promotions, test market the material with family and friends.
Once your home-based business is underway, strive to maintain a professional image. Don’t allow family members to interrupt phone calls. Set up a business telephone line with voicemail. Purchase quality stationery and business cards.
When you begin to make money, decide whether you’ll benefit from outsourcing repetitive tasks, such as bookkeeping, invoice preparation, errands and shipping.
Be sure to take time daily and on weekends to renew. Operating a home-based business can prove far more taxing than a regular 9-to-5 corporate job.
What if launching a new business seems overwhelming? Must you abandon your dream of working from home as a free agent? Not necessarily.
If you have sufficient capital, you can buy an existing business. Or, if you’re good at sales, you can join a direct-sales organization such as Rexall, Shaklee or Tupperware and sell its products to consumers.
Franchising is another option. In exchange for an initial investment fee and royalty charges, you can market an established company’s goods or services within a designated territory.
“When people first start home businesses, many are shocked to realize just how many things were taken care of by their companies.”
RUTH LUBAN
Author of “Are You a Corporate Refugee: A Survival Guide for Downsized, Disillusioned and Displaced Workers”
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Popular Home-Based Businesses
If you’re searching for a home-based business idea, consider these popular fields. Make sure you have the interest, skills and knowledge to pursue them.
For the computer-literate: Word processing, desktop publishing, Web design, editorial services, medical transcribing and public relations assisting.
Demand for home-based virtual assistants “has taken off phenomenally,” said Liz Folger, a work-at-home expert based in Sacramento. Virtual assistants typically earn $30 to $70 an hour performing concierge-oriented tasks for clients, such as booking reservations, researching travel destinations, scheduling appointments and purchasing gifts. Assistu.com offers training in virtual assisting. VIPdesk.com, a network of home-based concierges, hires virtual assistants for part-time employment. According to Mary Naylor, chief executive of VIPdesk, those employed typically make $20,000 to $40,000 annually.
For the well-organized: Party, wedding and event planning; professional organizing (of homes and offices); personal shopping; market surveying; errand-running; nanny-finding services; temporary employment agencies.
For the service-minded: Fund-raising, elder care, day care.
Personal coaching “is one of the hottest businesses of them all,” said Paul Edwards, co-author of “Working From Home: Everything You Need to Know About Living and Working Under the Same Roof” and “The Best Home Businesses for the 21st Century.”
For the collector: “Professional picking”--buying collectibles at garage sales and flea markets, then selling them for a profit at EBay and other Internet auction sites.
“There are people doing really well at this,” said Cheryl Demas, author of “The Work-At-Home Mom’s Guide to Home Business.”
For the body worker: Massage therapy, fitness training, yoga, reiki.
For the artistic: Gift basket-making, floral design, interior design, sewing/alterations and soap making.
For animal lovers: Pet sitting, dog day care and mobile grooming.
Career Make-Over
Name: Marianna Wechsler
Occupation: Homemaker, part-time music teacher
Desired occupation: Part-time music teacher and artist
Quote: “Unfortunately, due to my varied background and lack of ‘industry experience,’ I am having a bit of a problem finding a full-time opportunity.”
Meet the coach: Adele Scheele is a Sherman Oaks-based career coach.
