About one in every two small businesses is home-based, according to national research. If that trend holds true for Arizona, about half of the nearly 500,000 small businesses in the state are run from home.
Which is no guarantee for a home run.
Sure, operating a business out of your home can keep overhead costs low and offer other advantages. But making a profit in today's economic slump is no small feat.
The good news is that the West Valley business community and other state resources offer a myriad of services to help home-based entrepreneurs get off the ground - and make it through the lean years. Thursday'sBiz 2 Biz Trade Show in Litchfield Park, for example, is designed to allow businesses to promote their products and services, and let residents see what is available locally.
So whether you're a stay-at-home mom looking to make some extra cash or a corporate veteran seeking to trade in your suit and tie for pajamas and slippers, here are some tips on how to start making money from home.
It's important to know as much as you can about your market, industry and what you can expect before you start shelling out cash on equipment and other operating expenses.
• The Southwest Valley Chamber of Commerce has a wealth of literature for those interested in starting their own business as well as a resource center with a computer, color printer and software for marketing, advertising and creating business plans.
• SCORE, a small-business counseling service, offers free one-on-one counseling sessions at the chamber on Wednesdays.
• The Arizona Department of Revenue offers resources on managing taxes and other financial issues relevant to small businesses. Visit www.revenue.state.az.us for links and information sheets, such as the Business Basics brochure.
Doug Massie owns GeoTechnix Marketing, a consulting service for online marketing and advertising that he runs out of his Goodyear home. Massie said he built his service largely through networking.
"We started with the local chambers of commerce," said Massie, who began the service in New Jersey before moving to the Valley. By starting with local circles, Massie eventually expanded his market to include customers nationwide. He recently headed up online marketing for Rocklahoma, an annual rock concert in Oklahoma that draws upwards of 100,000 people.
• The Southwest Valley chamber sponsors two weekly networking opportunities. Friday night dinners at the Estrella Vista Reception Center offer business owners a chance to mingle and swap ideas. NetWorkers at Noon is a more casual lunch group that meets Wednesdays at the Paseo Apartments on PebbleCreek Parkway.
• Special events, such as the Biz 2 Biz Trade Show at the Wigwam Golf Resort and Spa, sponsored by six West Valley chambers of commerce, can provide a good chance to get advice from successful entrepreneurs and size up existing companies. Other opportunities include the Southwest Valley chamber's monthly breakfast meetings, and events through the American Business Women's Association's Southwest Valley Express Network.
• The Arizona Small Business Administration has a home-based business council whose 149 members meet monthly for speakers, discussions and networking. Non-members can attend the meetings for a $20 fee. The next meeting is at 11 a.m. Sept. 9 at the ASBA's Phoenix office. The theme: "Building Your Business Through Networking."
Once you decide to go for it and launch your business, you have to build a customer base. The cheapest, easiest and most far-reaching marketing strategy is to use online resources. That's where companies like Massie's can help. You'll have to fork over some capital initially, but if Massie's claim that he can increase businesses "by 30 percent in a year" comes anything close to true, the investment will be well worth it. Some more popular methods of online marketing include:
• Targeted e-mails: Massie can help pinpoint your target market - say, men older than 40 making at least $80,000 a year - and send only those individuals electronic fliers and advertisements.
• Web page: An online landing site is essential these days. Get your company involved in search advertising so that when someone enters a keyword relevant to your business into a search engine such as Yahoo or Google, the search will return an ad for your business with a link to your Web page.
• E-mercials and video marketing: Customers are so bombarded with advertisements these days that sometimes traditional banners and graphics won't cut it. Consider creating videos and slideshows to draw extra attention to your products and services.