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Is Working From Home For You?
By Michael McDermott

Some People thrive in an environment where they have lots of people around them. Others are more solitary in nature. In the future, more and more people may find themselves working alone whether they want to or not.

That's because working from home is one of the fastest-growing and most important societal trends taking place in the U.S. in the late 20th century.

Part of the push is coming from big companies. Spurred by mandates included in the 1990 amendments to the Clean Air Act, many are increasing their use of telecommuters. But another big push is coming from entrepreneurs. Many small and first-time business owners are finding that the home is the perfect location from which to launch a venture.

In some cases, home-based entrepreneurs are starting companies they hope will grow to the point that they eventually will need conventional offices outside the home. In others, the business owner plans to remain at home permanently. That option is particularly appealing to parents of school-age children, who want to be at home when their kids get off the bus.

Paul and Sarah Edwards are an entrepreneurial couple who have been in the forefront of the work-at-home movement. They are the founders of a forum devoted to this topic on the CompuServe Information Services on-line bulletin board, and they have written several books on this topic. One of their most popular titles is "The Best Home Businesses for the 90's," published by Jeremy P. Tarcher, Inc., in Los Angeles.

Working from home is a growing trend, both for employees and entrepreneurs.

In their book the Edwardses profile 70 top home-based businesses, with an eye toward how each business works and what background skills are required. Following are some of their selections for Part 1 of the book, which the authors call, "The Best of the Best."

* Abstracting and indexing services. This is a home-based business that is likely to appeal to those who "like to read a variety of books, magazines or other printed material," the Edwardses say. Within this overall job description are three possible business specialties: back-of-the-book indexing, indexing and abstracting for computer databases and abstracting for in-house corporate use.

The key knowledge and skills required to start such a business tend to be intellectual in nature. "You need sufficient knowledge in the subject areas you are abstracting--or a broad enough general knowledge and interest--to be able to ferret out central ideas and relevant information from printed materials on a wide range of subjects," the authors say.

You also need confidence in your ability to communicate and, in the case of database abstracting, some computer skills.

The start-up costs for such a business are low. You will likely need a computer with a modem and a hard disk, a fax machine, printer, some software, office furniture and reference books. All the should range in cost from less than $3,000 to about $7,000.

* Cleaning service. This is one home-based business that is benefitting greatly from the changes in society's demographics. With increases in the numbers of two-income and single-parent households, fewer people have time for house cleaning, so there is a growing demand for this service.

Very little is needed in the way of knowledge or skills to start a cleaning business. The basics are appropriate equipment and supplies, knowledge of how to use them and willingness to work hard and produce superior results. For those who require more "hand-holding," there are many good cleaning franchises available.

* Corporate trainer. This might be a more attractive choice to those with a white collar background. In another article in this issue of Business Opportunities Handbook, it is reported that lack of highly skilled and properly trained workers is one of the biggest concerns among CEOs of fast-growing companies. This home-based business can provide a way to tap into that burgeoning demand.

"As jobs demand more, workers need additional training," the Edwardses write. "The American Society for Training and Development claims that in order to do their jobs more effectively, 50 million people--42% of the workforce--need additional training in various areas including technical skills, management, customer service and basic skills. Meeting this need will require investing #15 billion each year on training above the current $30 billion now being spent annually."

Some home-based businesses require specialized knowledge or expertise.

Home-based entrepreneurs who are best-suited to capturing some of that huge chunk of revenue are those who have a skill or area of expertise they know others need to learn. Trainers also need excellent stand-up presentation and teaching skills, along with the ability to "sell" themselves to prospective clients. This is not a business for shrinking violets.

Be prepared to spend between $3.500 and $10,000 to get corporate training business off the ground. Start-up costs could include computer hardware and software equipment capable of producing professional-looking training materials, a binding system, office furniture and equipment, stationery and business cards, and perhaps a promotional brochure for your company.

* Image consultant. think this is just a gimmick for Hollywood airheads and pompous politicians? Think again. Image consulting has grown from being virtually unknown 15 years ago to a $130 million-a-year business at the start of this decade, according to the authors of "The Best Home Businesses for the 90s"

What's more, "In the nineties image consultants will undoubtedly expand still further and will include among their clients a growing number of self-employed people who must market themselves effectively to prosper," the Edwardses write.

Image consulting is a business best suited to those with a nurturing personality. The best image consultants strive to bring out an individual's strengths within the boundaries of accepted culture and customs. Still, fashion and color play an important role here.

Start-up costs are keyed to the type of image consulting you will provide. A fashion/visual specialist should expect to spend from $3,000 to $11,000 for training, reference materials, photos, media kits, wardrobe and other expenses. A verbal/speaking specialist should count on spending $4,000 to $10,000 on computer equipment, desktop publishing software, a camcorder and related items.

* Management consultant. This is sometimes jokingly referred to as a euphemism for "out of work," but the truth is, many consultants are self-employed by choice. In fact, professional consulting is growing at a rate of 16% to 18% a year, making it the fastest-growing segment of the information industry, the Edwardses report.

Howard Shenson, known in the industry as "the consultant's consultant," says there are four reasons for the tremendous growth in this profession:

1. The principal resource today is technical know-how. consultants have the knowledge that drives our economic system.

2. As information proliferates, it is increasingly difficult for typical managers to maintain state-of-the-art knowledge in all necessary areas, so they must rely on outside experts.

Many home-based businesses can be launched for a relatively small investment.

3. corporations are finding that hiring outside experts is the most efficient and cost-effective way to get the specialized knowledge they need.

4. Consulting provides the kind of lifestyle many people want, giving them greater variety in their workdays and more control over their lives.

You must be a good problem solver, a good communicator and be willing to take risks if you hope to run a successful consulting business. you should also be marketing-oriented and able to convince others of your abilities.

These are just a few of the 70 home-based businesses for the 1990s that Paul and Sarah Edwards describe in their best-selling book. In the directory section of this publication you will find some 2,400 business opportunities listed. Many of them, too, are perfect for the entrepreneur who wants to start a business from home.