Home based businesses aren’t new but what they contribute to the economy is becoming top news. Together, the 6.6 million home based businesses in the U.S. employ one in 10 private sector workers and provide at least half of their owners’ household income. These findings and more are part of a report on home based businesses recently published by Emergent Research.

So can hard working employees and professionals replace their incomes with full-time home businesses? That bit of information is a little less encouraging…for some.  According to the research only about 35% of home based businesses have revenue above $125,000, whereas 75% entrepreneurs doing business in commercial settings generate revenue over that amount.

Given the  emotional and financial roller coaster we’ve been on during this recession I’d wager a bet that higher income earners are looking at their $100K plus salaries with a little less certainty than they once did.  The fact that a home based business may offer less income in the early years  is becoming less and less of a determining factor for the employee-would-be-entrepreneur.

Throw in the huge and affordable marketing potential of the Internet and the drop in initial earnings for the new home based small business owner is even less important.  Businessweek recently did a story on the “homepreneur” trend and interviewed former programmer and now home-based business owner Stephen Labuda.

Like many savvy business owners Stephen started his business on the side back in 2003 while he was employed as a full-time programmer.  He took his own business full-time three years later in 2006.  Today his home based web development firm is generating revenue in the millions and he now employs people who work from their own remote locations.

In a previous post I spoke about U.S. Labor Department reports indicating a huge labor shortage in our future and the role that small businesses are likely going to play in helping large U.S. companies to remain competitive. Companies won’t be able to hire all the expertise they’ll need so they’ll be looking to outsource and small businesses will have the skills and innovation they need.

As smart people with a lot of experience from downsized corporate America begin to launch low-debt small businesses in their homes, we will, as a nation, begin to build a foundation for business innovation and success that’s not rooted in huge capital but rather in knowledge and people. That’s a sustainable combination from my perspective.

If you’re in the small business planning stages or currently running your home based business, one of the best things you can do (if you haven’t already done so) is connect with a mastermind group of fellow home based entrepreneurs. I repeat this advice in as many posts as possible because you really can’t achieve full potential in a vacuum. Asking questions of others who have already done what you’re attempting to do and succeeding at it, is one of the best things you can do to ensure the success of your company.

The Internet is all about connection and smoothing learning curves through collaboration and online learning. It really is an exciting and pivotal time to start a business. In the spirit of connection, I’d love to know – what’s your business interest and passion?

To your success!

Sharon

Like clockwork, the day after Hallowe’en the holiday season marketing drive shifts from a whisper to a roar.  As I watched a Sesame Street Elmo toy ad this afternoon I started to think about the typical entrepreneur’s holiday marketing season efforts.

If you created a marketing strategy this time of year should be highlighted as an opportune time to raise the profile on how you can benefit your clients/customers AND community this time of year.  One of the the best ways to do that  is to offer holiday deals to drum up interest in your business and your favorite charities.

As we’re just coming out of a recession it is probably a really good time to promote discounts and special deals.  Right now consumer goods manufacturers are going to try to get everyone’s attention and they’ll do a bang up job of it.

Whether you sell widgets, or information products or professional consulting services – you can benefit from the gift buying fervor.

For the person that needs widgets (or some other non-sexy but necessary gadget or tool that I haven’t the vocabulary for)  if you save them money with a holidy discount there’ll be more money for them to direct towards gift buying.  That’s the perfect angle to incorporate into your marketing material.

If you create informational products that help business owners to understand social media, you can create the timeliest guide showing how businesses can boost their holiday sales by using social media.  News wire agency, Reuters, just released a news item indicating that major consumer companies were planning to invest heavily into social media this season – more than ever before. Is your “holiday season” social media guide for businesses ready yet?

These are just a couple of examples, but the point is you have the opportunity to benefit from the general consumer urgency to buy over the next two months by tailoring your marketing efforts to capitalize on the biggest buying season of the year.

Don’t be dissuaded by news stories indicating lower sales because of the recession  – that’s in comparison to boom years.  People will still be purchasing in higher volumes and will be keeping their ears particularly attuned to anything sounding like a “deal.”

Here are some ideas to add to your own creative list of marketing activities this holiday season:

• Host a teleseminar or other special event targeting your market and partner with other business owners to offer holiday themed prize draws for those attending the event
• Offer to donate a certain percentage of every sale over the next two months to a recognized and respected charity
• Sponsor high profile holiday events in your online communities and even in your local communities (if the exposure generated will reach your target audience)

Sometimes people complain about the overly commercial focus that colors this season of joy.  There’s nothing preventing you or anyone else from changing that focus by incorporating charitable and giving initiatives into planned high profile promotions this season.

Any non-profit or charitable organization will tell you that this is the season when they receive the MOST donations. So many like you are doing their part.  By and large we have an enormous ability to give, care and support one another.

I say it’s the holidays and lets begin to celebrate by showing how creative we can be with our businesses and how giving we can be to the community.

To your success,

Sharon

I love a clean home but I don’t always like all the tasks involved in making it clean. To motivate myself I set certain goals that serve as incentives for me to finish these chores. For example I might plan to go out to dinner some place special if I finish chores by a certain hour. That’s my carrot. The same logic applies to many moonlighting entrepreneurs .

Moonlighting entrepreneurs are all around us.  From the file clerk  to  the VP in the corner office – the  opportunity provided by the Internet and a shaky economy have combined to make the pursuit of entrepreneurship almost common place.

The goal of running a business for yourself and for your family’s future is that “carrot,” that incentive that makes having and succeeding at fulfilling the responsibilities of a job satisfying.

Lifestyle consultant Donna Maria Coles Johnson explained in a 2006 New York Times Story that “many entrepreneurs keep their day jobs for security.”

That was 3 years ago. I bet the reasons are vastly different today.  The 2009 recession jolted a lot of people into thinking about security in different ways.  Even though the day job may be secure today, there’s no guarantee it will be there next month or next week.

Innovative people plan ahead and if they have the skills, the energy and the motivation they are taking baby steps to building a business in the evenings and on the weekends.

With all the information that’s available to teach people how to transition successfully to entrepreneurship, more and more savvy people are learning how to balance the task of achieving success at their jobs while using that experienced and enhanced skill set to prepare for and  build a business for future full-time fulfillment and…security.

One of the world’s leading full-time bloggers, Darren Rowse (Problogger) blogged as a hobby before eventually leaving his job to dedicate full-time hours to his blog business. Today he earns a 6-figure income.

Human resource consultants, head hunters and labor experts are  encouraging working people today to examine their skills and experience not just as items for a resume but as assets for a business. If your employment should cease for any reason you just might want to market your service and skills as an independent contractor or small business owner in some related field.

Planning for your next career as an entrepreneur is an empowering mindset to have. Instead of working in fear of becoming unemployed at some point, it makes sense to work in confidence as a capable and highly skilled and contributing member of your company.  Each task or project you manage helps to enhance your knowledge, experience and skills and that’s directly transferable to your future business.

The best time to plan for a business that will  take you through retirement is not while you’re stressed and worried about paying the next bill, but rather when you’re in a relatively secure position and able to make decisions rooted in facts not desperation.

This attitude and mindset can do wonders for your temperament and attitude.  You’ll actually be thinking like an entrepreneur while you’re at work and that’s actually good for everybody – including your employer.

If you’ve ever attended a conference or seminar for entrepreneurs you’ll know that there’s a different kind of vibe in that community.  When people are truly following their vision and realizing goals they set and control, it can be intoxicating.

I’m sure that upbeat attitude doesn’t mean everyone is rolling in profit. Rather I think it is just a reflection of how some people feel when they are following their own path and taking control of their financial future.

If you’re on my list, you’ll soon be receiving some information about educational resources and mentorship groups that can help you transition successfully from full-time work to full-time entrepreneurship.

Are you on the Biz Facts Online list? If not sign up now – the subscriber box is on the top right hand corner of every page on this website.

To your success,

Sharon

How many stories have you read about famous entrepreneurs who faced multiple rejections and set-backs before finally getting that big break or that first client that served to set their business in motion?

Probably many and there’s a reason for that – success in most cases is not immediate. It takes sweat and perseverance 99% of the time.  You have to be an advocate for your business especially in those early days if not throughout the life of your company.

This bit of advice is particularly important for the new breed of entrepreneur coming out of America’s downsized (or shut down) corporations and those “return-to-work” parents (mostly moms)  who now need to find a way to boost the family income.

This “new breed” is coming from a position of relative stability. Many are accustomed to regular paychecks (or a partner with a regular pay check), nice health care benefit plans, paid vacations and the security of knowing that they have a nice pension developing for their “retirement” years.

Of course the economic recession of 2009 burst that bubble.  Now we have thousands of skilled men and women, probably many of you reading this, examining ways in which to channel that tremendous experience and talent into a business that will provide them with the personal satisfaction and financial security.

The one trait that you may not have (yet) is the stubborn streak of an advocate.

Once you’ve done your research and consulted with peers and professionals ideally in the field where you’ll be doing business, create a business plan based on the facts.  Refer to this prior post on this topic for more information.  Once you’ve got the confidence in your business strategy and goals you have to defend it and be persistent at it.

You’ve likely heard before that it takes 3-5 years for many businesses to start turning a profit, but that doesn’t always sink in the way it should.  So many small business owners quit after 6 months because they let doubt and unsubstantiated criticism from folks who may know less about their market than they do, affect them.

It took Abby Widmer, a Pilates Studio owner, 22 meetings with different banks before she finally found one willing to loan her the funds for the studio she wanted to open.  That’s the kind of persistence that will keep you afloat as a new entrepreneur.

Your well researched and prepared business is “your baby” and you’re going to have to be vigilant and stubborn in your focus on your special venture. Make minor adjustments as necessary but don’t lose focus on the goal you’ve hopefully spent a lot of time and research in developing.

Yesterday I spoke about dreams and how the new mindset is not about wistful thinking but practical “stepping” towards our dreams as the new breed entrepreneur.  Keeping sight of that dream will help keep you on track and persistent in achieving your goals.

Are you an advocate for your business?

To your success,

Sharon

The unemployed and economically frustrated are choosing entrepreneurship in great numbers because bills need to be paid.

But I’d wager a bet that any survey of small business owners would still surface quite a few of us whose dreams extend beyond the timely payment of utility bills.

Check with Your Small Business Owner Network

In one of my small business owner networking groups we had a discussion about why we’re running our businesses and where we see ourselves a few years down the road. I can tell you that continuing to pay the bills on time, while expected,  didn’t lead the “dream” list.

Small business networking groups are not just good for picking up knowledge about your industry and practices.  They are good for inspiration,validation and accountability.  I learned from my networking group that I wasn’t the only business owner that wanted more travel in my future.

Many of us want to travel more, others want vacation homes and still others just want the peace of mind that comes from knowing financial needs are met.

Unlike many employees who fantasize about not working in the future, entrepreneurs tend to love what they do and like the fact that they can determine the timing of their retirement (if at all).  We want to keep running our businesses as long as they feed our aspirations and turn concepts into reality. The portability of running a business online makes it particularly appealing as a long term pursuit.

The Baby Boomer, Labor Shortage and Opportunity

The background to all of this is the reality that the largest population group in our nation – the aging baby boomer  – will be retiring in droves in the years ahead. Unlike previous generations, there will be fewer youth available (or even willing) to fill these positions since as a society we are having less children than we did 20-30 years ago.

Labor analysts are forecasting a significant labor shortage that may impact North American companies’ ability to compete successfully in the marketplace. Other analysts who are watching the entrepreneurial trend of baby boomers are indicating that this will be an opportunity for small business owners to become essential outsourcing partners for larger firms.

Does this make you feel more confident about your small business venture? It should. Being creative and flexible enough to respond to expected market needs as articulated by  forward thinking economists and best selling authors like Richard Florida is good news for your financial future.

It’s also good news for your life plans.  Think about it…summers in the northern part of the country or maybe another country all together? Once those cold winter winds start to blow you can either enjoy the ski country if that’s your thing or head to the Caribbean for real warmth and relaxation. No matter your decision with an online business you can in many cases move your business with you for those extended stays in any place your heart desires.

So what dreams are you going to realize in the year(s) ahead?

To your success,

Sharon

There use to be a time when entrepreneurs were a “rare” breed of individuals and risk takers with savings.  Today, with our shaky economy, entrepreneurs embrace a far larger group of individuals who aren’t only visionaries chasing their dream.  A small business owner today could be the father of 4 who got  laid off from a car plant last week or the single mom frustrated with her quality of life and the uncertainty of corporate employment.

Still…not every unemployed, career-discouraged person chooses entrepreneurship. The “risk” factor still only appeals to a certain group of people .  So let’s hear what the experts say on this matter.

Scott Shane of U.S. News Report researched several surveys and studies on entrepreneurship and based on those facts came to the conclusion that people choose entrepreneurship because “they don’t want to work for someone else.”

It’s not the money.  Repeat – it’s not the money.  Employees by and large earn more and have more benefit perks than entrepreneurs.  Employees also have less stress, they may be insecure about the future of their jobs, but for many what they can’t see (unemployment) doesn’t stress them out.

Entrepreneurs on the other hand have stress.  They have to pay their vendors, their employees, their business expenses, business taxes, etc. and oh yes, they have to pay themselves so their spouses remain with them and their children are fed.  Obviously stress becomes a factor when all these bills come due and clients haven’t paid or the client list is wanting.

Yet…even with this stress, entrepreneurs love the independence, the control and the variety that comes with the day to day task of running a business.

Now the love of calling yourself the boss can only get you so far–starting a business takes resources though in many less than was once needed because of the Internet.  For less than $100 many people find that they can be open for business…online. Whether a new entrepreneur is a service provider like an accountant, a manufacturer of products like jewelry or e-books, or a sales professional like a realtor or internet marketer, the Internet has drastically cut the cost and labor required to effectively promote that business to local or global markets.

Also, for many types of businesses a brick and mortar “office” or store front is no longer necessary. The website and a home office is in many cases sufficient for a growing number of small business owners.  With shared facilities featuring board rooms and secretaries that you can lease by the hour,  the need for permanent office space decreases even further along with over head costs.

Here’s a short list of some great resources helping entrepreneurs to get their businesses successfully off the ground:

Small Business Start-up Information – SBA

Freelancing

Mentorship Groups – Self Starters Weekly, Mom Masterminds

Internet Marketing Resources:  Nicole Dean, Lynn Terry Click Newz

Research – Google and Twitter Search

So why are you an entrepreneur (or a soon to be entrepreneur)?

CNN recently reported that small businesses around the country are looking to their local communities for more than just their patronage–they’re looking for “shareholder” type support for the long-term and it is paying off.

A restaurant owner in Hudson, N.Y. severely hit by the credit crunch during renovations of his establishment was literally saved by his local patrons.  He came up with incentive “VIP dollars” package which patrons bought into in droves.

He was able to raise $25,000 in six months and finish his restaurant’s renovations.  The bonus: his VIP customers patronized his establishment in healthy numbers in order to cash in on their VIP privileges/points. You can read more about that story here.

As online business owner your virtual “community” is just as important.

Think of the process you go through to find a good graphic designer, virtual assistant, accountant, or copywriter.  Among your key considerations are time, trust, and cost.  You don’t want to spend a lot of time looking for service providers or vendors but you want the best person you can get within your budget.

The wise thing to do in most instances is to turn a network of trusted peers, clients and friends for recommendations. If you’re already involved with mentorship groups or have a circle of contacts you communicate regularly with on social media forums like twitter then that’s your “community.”

Don’t underestimate the role this community will play in building your business.  Beyond the marketing benefit of promoting your business in social media forums, etc., the relationships you develop through conversations and the brand awareness you develop through sharing your expertise can all help to contribute to your bottom line.

You have a stake in the communities within which you network.  Your next client, contract or supplier could come from this network.  How are you contributing to the vibrancy of your networks and what are some of your favorite small business networks?

The recent global recession has only helped to fuel the upward trend of entrepreneurship in the U.S. and Canada.  What has made starting a business even more affordable is the Internet.

Before the Internet one of the most expensive aspects of starting a business was marketing. The cost of placing advertisements in local, regional or national media was ridiculously expensive as were printing costs associated with direct mail and other promotional tactics needed to let customers know you were in business.

Today a website, hosting and implementation of an online marketing strategy could cost less than $100 and might offer far more targeted exposure than a “pre-Internet” campaign.

Here’s a short list of just a few of the dozens of popular and successful online businesses today:

Business Writing

Online Affiliate Sales (market and sell other companies’ products and services from your website for commission)

Virtual Assistant Service

Product Review Blog