Make An Intelligent Decision

STARTING AND MANAGING A BUSINESS FROM YOUR HOME
"There's No Place Like Home" The cottage industry, an old-fashioned enterprise, is enjoying a revival so strong that it's difficult to find out just how many Americans are now working at home. Estimates range from two to five million and the numbers may double by 1990.Because women now enter business at a rate five times faster than men, the trend of operating from home is growing. A natural starting place for many businesses seems to be the garage, basement, or den. A recent Census Bureau study showed that over 300,000 women's businesses are operated out of the home. Homemakers, hobbyists, retirees, people interested in a second income, and the disabled are just a few of the groups attracted to home enterprises.

As you explore your questions let your thoughts run freely through the possibilities until you can target exactly the right type of business for your skills, your home space, your market, and your part of the country. Home Entrepreneurship: Is It For You? The first step in deciding whether to start a business is to ask yourself this important question: "Do I have what it takes to be an entrepreneur?" Studying the characteristics of successful business owners will help you to tell whether your personality traits, experiences, and values are similar to those who have succeeded. And assessing your experience, skills, and life goals will also help you decide if you want to invest the energy, time, and resources that successful entrepreneurship requires.

Who is the "Typical" Entrepreneur? What makes an entrepreneur successful is a hotly debated and vigorously researched subject. Do you reconcile your bank account as soon as the monthly statement comes in? Entrepreneurs are careful about money. They usually know how much money they have so they can seize opportunities on short notice. They know what things cost, whether prices are going up or down, and whether they are getting a bargain. Did you earn money on your own from some source other than your family before you were 10 years old? Most people who are going to make money in business show an affinity for making money at an early age--by babysitting, selling lemonade, delivering newspapers, or some such strategy. Do you get up early in the morning and find yourself at work before others are out of bed? Entrepreneurs sleep and eat enough to keep up their strength, but they don't usually tarry at these pursuits. Do you tend to trust your hunches rather than wait until you have a lot of information on hand? Hunches are judgments based on factors that cannot be quantified, A big part of entrepreneurship seems to be risk-taking based on these hunches. Do you keep new ideas in your head instead of writing them down? Entrepreneurs keep a lot of things in their heads, including their most creative ideas. Do you remember people's names and faces well? Ease in remembering names and faces is very important in the business world. Were you good in "hard" subjects -- mathematics, biology, engineering, accounting, and so forth -- in school? People who major in business administration in college are more likely to be successful entrepreneurs than anyone else. They prefer subjects in which the answers are conclusive rather than open-ended conclusions full of contingencies. In school, did you pretty much stay away from such organizations as Scouts and student government?

Most entrepreneurs tend to be loners rather than joiners, unless joining is a useful tactic for making contacts and gathering business information. In courting the opposite sex, did you tend to go for one person at a time as opposed to playing the field? Most entrepreneurs preferred one person because to play the field would have taken too much time away from business activities. Do you close deals with a handshake rather than insisting on written contracts and guarantees? Good entrepreneurs are often comfortable with something less binding than written contracts. When the only bond is a word, it becomes a matter of honor, and no entrepreneur can afford to lose honor. Do you devote considerably more time and thought to work than to other activities, such as hobbies? Entrepreneurs may have some leisure time activities, but their principal hobby is their work.

Was your parent an entrepreneur? Having a close relative who was an entrepreneur is the single most telling indicator of a successful entrepreneur.

The entrepreneurial streak shows up early in life. Were you a good student? Typical entrepreneurs were anything but model students and often were expelled from school. Do you have a favorite spectator sport? The best answer is "no." Entrepreneurs are poor spectators. They often excel at individual, fast-paced sports such as skiing or sailing. What size company do you now work for? The typical entrepreneur comes from a medium-sized company--30 to 500 employees. Have you ever been fired? Entrepreneurs make poor employees. That's why they become entrepreneurs. If you had a new business going, would you play your cards close to the vest, or would you be willing to discuss problems with your employees? Typical entrepreneurs have a secretive streak. If they confide in anyone, it is likely to be another entrepreneur. Are you an inventor? A Ph.D.? Not a positive indicator. Inventors fall in love with their products, Ph.D.s with their research. How old are you? The typical age for starting a business seems to be 32-35.When do you plan to retire? Entrepreneurs don't retire. They may sell a business and think they will retire, but they are always out there starting a new business.

Entrepreneurs are people who have high energy, feel self-confident, set long-term goals, and view money as a measure of accomplishment. They persist in problem solving, take moderate risks, learn from failures, seek and use feedback, take initiative, accept personal responsibility, and use all available resources. They compete with themselves and believe that success or failure lies within their personal control or influence. They can tolerate ambiguity. Are You Ready, Willing, and Able? Now that you have studied the characteristics of others who have succeeded, survey your reasons for wanting a home-based business. Are you dissatisfied with your current job? What are your skills? What is your business experience, especially in the business you want to start? What are your life goals? What resources do you have that might help? Answering these questions will provide reality testing for ideas that can sound incredibly glamorous when chatting with friends or seductively attractive when you are irritated or bored by your present job.

The Advantages of Home-Based Business Why have millions of Americans chosen to work and live in the same place? Why are cottage industries sprouting faster than we can count them? Some home-based businesses start by accident rather than by conscious design. Secretarial services, day-care centers, craft ventures, and the like may start out as weekend activities in the recreation room. After a while their owners are surprised to see how profitable or enjoyable the venture has become. The glimpse of a healthy market lures them into a full-time venture. This low-risk, low-overhead, gradual kind of start-up is very attractive to new business people.

Many home-based business people cite decreased commuting time and other lessened business expenses as advantages for working at home. If your place of work is just 30 minutes away, that's five hours a week in commuting time, many dollars in gasoline and car maintenance or transit fares, and untold stress fighting traffic. Getting out of the high-fashion rat race is a plus for many who dislike having to dress up and continually buy new clothes to feel comfortable in settings outside the home. Homemakers--mostly women but also an increasing number of men--are choosing a home-based business in order to have a more flexible lifestyle and to be closer to family. A parent who has a home office can eat lunch with the children or more easily attend special school or sports events. The home-based businessperson has more control over work hours than someone with a 9 to 5 job. Night owls who like to work until 3 a.m. can then sleep late (remembering, of course, to turn on the answering machine and let customers know the business hours). On the other hand, early birds can work without the usual disturbance from the telephones. The tax advantages of operating a business from home are numerous but sometimes complicated. Wise business owners keep careful records and work with accountants, attorneys, and financial planners to make sure they are filing for the legal maximum write-offs and benefits.

Your Next Steps Now that you have reflected on the characteristics of successful entrepreneurship and assessed your skills, experience, and life goals, it's time to plan your next steps. Ask yourself: Now that I know more about what's involved in starting a business, is it still for me? Do I need further training or experience? Should I begin part-time in order to test the waters, check out market potential, or refine my product or service? Do I need more time to research possible products or services? Have I decided on a particular business?

Your answers could shape the rest of your life. Choose wisely, and if you choose to work with us, we will pledge ourselves to helping you become the success you have always dreamed of.