For small business owners who operate out of home offices, the thought may cross your mind that eventually you’ll need to get a ‘real’ office in order for your employees and clients to take you seriously. Push the thought from your mind and resist the urge. Industrious homepreneurs are, in fact, on the rise, reportedly employing more people than than non-home based, ‘proper’ businesses. Not only are homepreneurs keeping the home office hearth burning, they’re totally earning.
Jon Tuzzi’s recent article on the rise of the homepreneur cited a study, coincidentally released by a home-based research company run by a husband and wife team, that found that while most home-based businesses earn less revenue than non-home-based companies, profitable home businesses tend to retain a greater share of the earnings.
By keeping overhead costs to a minimum, home entrepreneurs are able to pass the savings on to their clients, turning what used to be a vague stigma (home office = quaint hobby) into a definite asset (home office = high level of service without all the upcharges).
As big businesses continue to try and cut costs, flexible home-based businesses and freelancers will become an even more important part of the economy. The home-based research company that released the afore-mentioned study estimates that the percentage of self-employed and home-based businesses could as much as double in the next twenty to thirty years.
So if you’re a small business on the cusp of growth, don’t even think about spending it on rent. Spend the coin on marketing, or your client gifts this year!