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

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

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