Did you know that approximately 67% of companies begin in a spare bedroom, garage, or basement?
According to the 2012 Global Entrepreneurship Monitor report (PDF), more than half of U.S. entrepreneurs continue to operate their businesses from home long after those businesses are up and running. Many of the big brands we know (i.e. Apple Computer, Electronic Data Systems and Hallmark cards) today had their beginnings at home. Today there are more opportunities to start a business from home thanks to the Internet, making the operation of a virtual company from home more feasible and affordable.
A home based entrepreneur has benefit of allowing you to keep your current job to provide the cash flow to provide for the present while building your business to build wealth for the future.
Who needs long and costly commutes when you can run your home business a few feet from your kitchen?
Do not be mistaken to think that these home-based businesses never grow beyond a staff of one. Withe the help of the internet, many businesses are “virtual businesses”. This allows collaboration without boundaries and the focus becomes more about the talents coming together than the physical workspace.
Here are some interesting stats from the 2012 GEM report on home-based entrepreneurship:
Most start-ups are self-funded or family/friends funded – approximately 82% of the businesses in the survey were self-funded or using the capital of family and friends. The use of venture capital was rare.
Businesses not only are started from home, but tend to be run from them – The 2012 survey says 69% of businesses now start in the home. And 59% of established businesses more than 3 and a half years old continue to operate from there.
There is no age limit – Roughly 15% to 20% of adults across all age groups are entrepreneurs. Young entrepreneurs have the highest intentions to start a business, with 30.5% saying they intend to start one. The intention to start a business drops during mid-career, and then starts rising again at age 65 and up. Many seniors are retired. However, of those still working, more than 42% run established businesses (i.e., businesses more than 3 and a half years old). About 10% are starting or running new businesses of less than a few years old. And over 25% intend to start a business.
Women entrepreneurs are more likely to have home-based businesses — Among startup businesses that operate out of the owner’s home, 72% are operated by women — versus 61% of men. Among established businesses more than 3 and a half years old, 68% of women still operate the business from home, versus 53% of men.
If you have decided you are ready to start a home-based business, then you might already have an idea and/or the products you want to market. Like any brick and mortar business treat your home-based business as a business and not as a hobby.