Story Photos
 Photo by Roger Werth Home business owner Don Kudlacek, of Kudlacek's Archery Inc., makes and invents custom bows and archery equipment at his Longview home. |
Entrepreneurs increasingly turn to home-based businesses
Thursday, November 30, 2006 11:51 PM PST
By Evan Caldwell
Printable version
E-mail this articleAbout 25 years ago, Don Kudlacek thought he could improve his hobby --- archery.
"I didn't like what was out there, and I felt I could do it better," said the 73-year-old Longview resident.
So he started Kudlacek's Archery Inc. in a shop behind his West Longview home, added tools and cranked out new prototypes of better bows, arrows and parts.
He had ideas. And he's not alone.
Kudlacek is one of about 7 million people who turned ideas into cash by starting a home-based business. These behind-the-scenes business owners earned about $102 billion in 2004, according to a U.S. Small Business Administration, reporting the most recent available statistics.
And because home businesses typically have lower overhead costs than a small business with a storefront, the owners usually get a higher return on revenues despite grossing less than small brick and mortar shops.
"If you have that entrepreneurial spirit, that's where I'd start, in the garage or home," said Rick Winsman, president of the Kelso-Longview Chamber of Commerce. "Hewlett Packard, Microsoft and Apple all started in a garage. This is how businesses start. Then they expand from there by paying attention to marketing, quality and cost."
If the business fails or the owner loses interest, there is no lease and low overhead, which means low risk, said Winsman, who once started an engraving business from his garage.
The Kelso-Longview Chamber doesn't meet with too many home-business hopefuls, but it would like to, he said.
"I wish that more people would come in," Winsman said. "Typically, they really don't know what is involved in starting a business. Some give no thought to insurance, taxes, licenses or a business plan. We could help."
And the more home-based business owners in a community, the healthier the economy, Oregon SBA spokeswoman Maria McKissen said. However, no agency tracks the ever-changing home-based business numbers, its employment levels or specific impact on regional economies.
"They are creating jobs for themselves and paying tax dollars," McKissen said. "They are also staying off the rolls for tax assistance and government aid."
For those would-be entrepreneurs who don't want to give up their day job there is a low-risk option: minipreneurship.
Instead of starting a full-fledged small business, minipreneurs test the retail waters with mini home-based businesses and, more recently, via the Internet.
The idea has become so popular that Trendwatching.com, which monitors consumer trends around the world, coined the term minipreneur for small and micro businesses, side businesses, Web-driven entrepreneurs, eBay.com traders and most home businesses.
The Internet has opened this minipreneur trend, Washington SBA spokeswoman Sylvia Gercke said.
"Home businesses are a key sector in the economy," Gercke said. "But entrepreneurs don't have to go outside their homes anymore. Sites will sell your product. You have access to international markets. This is a huge phenomenon."
But entrepreneurs still need to lay the basic groundwork with a business plan.
"It can be simple, because you 're just testing the waters, but you need to know where you're going," she said. "Then you can start testing the market, get a feel at flea markets or Saturday markets and create a Web site. This is how you get started and it's easy."
Kudlacek's business plan was simple: stay dedicated. "That's how you make it," he said.
Now, Kudlacek owns 17 patents on bows and parts. He averages $3,000 a month in sales, some from his Web site, www.genesisarchery.com/.
"I just love to create things," he said. "Some days I wake up so excited about a new idea and I'll hurry out to the shop. And watch out because the chips will be a-flyin'."
Past Month's Most Commented Stories