One Sherpa

Are you running a business from home?

Are you frustrated by being considered a hobbyist more than a real business owner?

Well there is good news for you.

There’s a new class of business owners called Homepreneurs.

Small business owners running viable enterprises from their home.

A study by The Small Business Success Index in America last year researched home based businesses and found some very interesting facts.

1. There are about 6.6 million home based businesses that generate at least 50% of the owner’s household income.
2. Homepreneur businesses employ over 13 million people.
3. 35% of homepreneur businesses generate more than $125,000 in revenue; 8% more than $500,000.
4. Homepreneur businesses are competitive, scoring roughly the same on the Small Business Success Index as small businesses based outside the home.

So what can you take from this?

This section of the economy is alive and vital and increasing all the time.

Technology is assisting this and I believe in the next decade we’ll see it increase.

Do you have experiences you would like to share?

What obstacles have you overcome in running your business from home?

I’m continually amazed at how small business owners borrow against their family home and then think they have CASH to spend in the business.

If you have borrowed money or have a form of borrowing in your business then you are using other people’s money in your business and not your own.

The fact is that to get started most small business owners have some sort of borrowing because just like buying a house it is difficult to save up enough money to launch a business from your own money.

So to get started it is simply a matter of taking a loan against the family and ‘hey presto’ you’re in business.

BUT unless you believe you’re using other people’s money which needs to be paid back you can get further and further into debt without quite realising it.

The fastest way out of debt is a strong cash flow in your business.

The fastest way to get into trouble is to forget about your borrowings and fail to produce good cash flow.

I’m not talking about profit because it is possible to make profit and still have bad cash flow.

There are lots of resources on cash flow available but if you would like an introduction then go to our series of teaching on this and educate yourself before finding the bank breathing down your neck.