More Americans than ever working at home

The number of Americans working from home is dramatically on the rise.

The U.S. Census Bureau reports that almost half of the 17 million small businesses in the United States are now based at home, according to its "Characteristics of Business Owners" survey. New 2000 census figures, due in April 2001, also are expected to show a dramatic increase.

By comparison, a 1997 survey prepared for Telecommute America estimated that the number of Americans working by computer from home rose from about 4 million in 1990 to approximately 11 million in 1997.

The Census Bureau in its March 1998 "Census Brief" reported that from 1980 to 1990, the number of people working at home increased 56 percent, from 2.2 million to 3.4 million.

The study said 54 percent of the home-based workers were self-employed, 36 percent were employed by companies. Women were 52 percent of the work-at-home population and 44 percent of the at-home workers were 45 years of age or older.

Launching a home-based business raises many questions; e.g., what are the setup costs what hardware, software, furnishings, and storage space will be required and the cost of acquiring and maintaining these items? Home-oriented entrepreneurs must also ask themselves whether they're self-starters, disciplined enough to meet schedules and sustain a business in the home and if they can deal with the isolation of working at home.

Sonja Chasteen, manager of business assistance for the Springfield Area Chamber of Commerce, said "If someone is truly thinking of starting a business, there are many resources in the community for help." She said the chamber generally receives fewer calls from people interested in starting self-employed businesses than those wishing to work from home for a private employer. "The process (there) is the same for seeking traditional employment," she said. "Pound the pavement, check the classifieds."

Chasteen said that rather than provide a list of businesses employing people working at home, "We put interested parties in contact with HBBO, Home-Based Businesses of the Ozarks."

Originally sponsored by the chamber, HBBO formed in 1995 as a support group for home-based businesses and small businesses. Bruce Helm, who manages graphic design and public relations for HBBO, defines the group as "a networking resource for small business owners in the area. We have an online directory, www.hbbo.org, and meet at 7 p.m. the second Tuesday of every month at the Springfield Library Center."

HBBO collects annual dues of $25 and provides members with a monthly newsletter. Meetings feature a guest speaker and also provide a social setting for members who, because they work at home, are somewhat isolated from the community at large.

Helm, the proprietor of Helm Graphics, earned a degree in commercial art from Southwest Missouri State University and worked several years as an art director in New York before returning to the Ozarks. He said people curious about working at home should have previous knowledge of the field they're entering so they don't have to develop a whole new area of expertise. "Define your target market and clientele, identify potential competition, and be patient getting off the ground may take awhile," he said.

He also emphasized the need for developing a business plan and raising necessary capital to start a home-based business. "Be prepared to wear many hats, especially for bookkeeping and accounting purposes," Helm said.

Home-based business is becoming more popular, especially in light of recent layoffs in the area, Helm noted. He said his least favorite parts of working from home are bill collecting and making yearly budget projections. However, he said, "It offers the opportunity to direct my own destiny. I enjoy what I do."

Home-based businesses fall subject to many of the same laws and regulations that affect other businesses. The local chamber's publication "Starting a Business in Springfield, Missouri" recommends consulting an attorney and the state Department of Labor to find out exactly what laws affect newly formed businesses. They may include zoning regulations, restrictions on certain goods, registration and accounting requirements.