10 Booming Homebased Businesses Thinking of starting a business from home? We've got 10 great ways to get started!

Looking for a reason to start your new business from the comfortof home? How's this for encouragement: Homebased business isone of fastest growing segments of the entrepreneurial economy.More and more people are leaving behind the traditional definitionof the formal office and are starting up the businesses of theirdreams from their home offices.

In fact, the U.S. Bureau of Labor Statistics estimates thatthere are now more than 18.3 million homebased businesses in theUnited States. You, too, can be part of this growing shift towardshomebased entrepreneurship, and we've got 10 great ways for youto start.

Personal Organizer

If you've got a knack for neatness and a penchant forplanning, why not make clutter your cause and become a professionalorganizer? You certainly won't be alone: Membership in theNational Association of Professional Organizers (NAPO) increased 15percent in the last year and has nearly doubled since 1993.

"I love the organizing process and the benefits that peopleget from it," says Stephanie Denton, a NAPO director and theowner of Denton & Company, a professional organizing firm inCincinnati. "I gradually realized that organizing-somethingthat not everyone has the inclination or desire to do-was somethingI could teach to other people."

In 1994, Denton started her business by working in residences,organizing anything that pertained to running a household:paperwork, closets, kitchen items, etc. Now, she also works withcorporate executives and businesses, organizing anything that fallsunder the categories of paperwork, space, time and interpersonalcommunications.

"It's not uncommon for me to work with several peoplewithin one company," explains Denton. "As one personstarts to reap the benefits of being organized-as their stress orfrustration level decreases or their productivity increases-andpeople notice, then others want to work with me, too."

Working from a designated work space within her home, Denton isable to set appointments, write columns about organization fornewspapers and magazines, and complete her daily paperwork. But thehighlight of working from home, she says, is following her ownschedule. "The scheduling flexibility is unparalleled,"says Denton. "Some people are real morning people who hit theground running, while some people are more creative later in theday or evening. If you're working from home it's easier tomesh your personal and professional life so that you create anenvironment and lifestyle that works best for you."

Hot Resource:

National Association of

Professional Organizers

1033 La Posada Dr., #220

Austin, TX 78752-3880

(512) 206-0151

Network Marketing

Network marketing is in its 'momentum phase,' wherewe're going through a large amount of growth veryquickly," says Rod Nichols, author of Successful NetworkMarketing for the 21st Century (Oasis Press, $14.95,800-228-2275). Through his research, Nichols found that 50,000 newdistributors join network-marketing opportunities each month. Whatare the hot opportunities? Industries catering to baby boomers:nutrition, skin-care products, and health-related products."With 72 million baby boomers approaching their later years,health is a key issue."

Daren Falter was bitten by the network-marketing bug while acollege student. "It consumed me," says Falter. Since1990, he has pursued network-marketing opportunities intelecommunications services, wholesale-buying clubs, and waterfilters. "I really wanted to earn a six-figure income and notwork 60-plus hours a week. The way to do that was to build aresidual income, which is ongoing income for work done in thepast."

From his homebased business, DC Falter Marketing in Lacey,Washington, Falter now works an independent distributor for Usana,a company that manufactures and distributes high-quality vitamins,anti-oxidant minerals, and personal-care and skin-care products.Falter built his thriving Usana distributorship almost entirelythrough mail order advertisements. About 20 percent of hismarketing efforts were made through personal contacts andrecruitment of distributors via the Internet.

Falter's formula for success is simple: "Find someoneyou relate to who is successful and copy how he runs hisbusiness." He also suggests carefully researching companies,which he did before selecting Usana in 1994. Falter scrutinizedeach company's compensation program, management style, recordfor integrity, and reputation for helping new distributors succeed."There's good information available from Dun andBradstreet, the Better Business Bureau, and your state'sattorney general's office," he notes.

Hot Resource:

Multi-Level Marketing International Association

1101 Dove St., #170

Newport Beach, CA 92660

(714) 622-0300

Mystery Shopping

As more small businesses open each year and competition in themarketplace grows more severe, the golden rule in business remainsclear: The customer is king. So how can you make sure yourcustomers are being treated like the royalty they are?

Vickie Henry, CEO of Feedback Plus, a national mystery-shoppingcompany, started her company to help businesses find out."Feedback Plus is built on the belief that actually becoming acustomer-and evaluating how customers are treated when they shop atyour stores-gives valuable insight for action toward improvingcustomer satisfaction," she says. Feedback Plus sendsindependent contractors to pose as customers in retail stores andrestaurants and banks, who then report on each company's levelof customer service. With a roster of more than 72,000 mysteryshoppers and more than 25 years of experience, Feedback Plus hasgrown into one of the giants in the mystery-shopping industry.

When Nina Lovell, a former critical-care nurse in Rome, Georgia,began looking into starting her own mystery shopping business in1995, she immediately noticed Feedback Plus's giant presence inthe marketplace. So instead of trying to beat her competition, shejoined them.

As owner of Healthcare Matters Inc., Lovell now works as anindependent sales representative for Feedback Plus, brokering itsmystery shoppers to health-care companies such as hospitals,physician offices, rehabilitation centers, managed-care companies,and nursing and retirement homes.

"Health care has become a retail business," saysLovell, "and each company's success is now driven bypatient choice. Health-care providers realize that their futuredepends on their ability to deliver more than just good clinicalcare."

Healthcare Matters Inc.'s main focus is to provide reportson the quality of service provided in these institutions."We're not assessing clinical quality-did they order theright medicine or handle the X-ray process properly?" saysLovell. "We simply want to know how the customers are treatedwhen they're there."

Hot Resource:

Feedback Plus Inc.

5580 Peterson Ln., #120

Dallas, TX 75240-5157

(972) 661-8989

Career Coach

Basketball courts and football fields aren't the only placeswhere professional coaches are in big demand. They're also hotin the business world, where career coaches help direct downsizedemployees into new jobs and counsel corporate executives onbecoming entrepreneurs. Last year, U.S. News and WorldReport ranked career and personal coaching as one of thenation's hottest consulting activities, second only tomanagement consulting.

"The growth in coaching is tremendous," says JeffRaim, International Coaching Federation (ICF) president. "In alittle more than two years, ICF's membership went from 500 to2,900 members."

One such member is Diane Menendez, who started High PerformingSystems Inc. from her Cincinnati home. Previously, she spent adecade as an employee of AT&T and Federated Department Stores,where she helped prepare management executives for key moves up thecorporate ladder. "You could say I groomed the big guys forsuccess," says Menendez, whose educational credits includedegrees in counseling and organizational psychology.

When Menendez started her business in 1988, her clients werelarge corporations. In 1994, when clients began experiencing careerchanges and asked for help, she moved in a new direction, and todaycounsels up to 30 individual clients at any one time oncareer-transition issues. "It's extremely gratifyingwork," she says. "My clients know I faced similar issueswith my career, so we share many of the same experiences."

Where can you get training as a career coach? Coach Universityin Houston is a "university without walls" that trainscoaches via the phone and the Internet. ICF provides a job-referralservice and conducts an annual membership conference.

Hot Resource:

Coach University

115 South 1100 East, #806

Salt Lake City, UT 84102

(800) 48-COACH

Adventure Tourism

Never mind low-energy hammock swinging and lethargic poolsidelounging-more and more office-bound Americans want to climb, hike,river-raft, free-fall, and be physically active during theirhard-earned vacation time.

Want proof? According to Jerry Mallett, president of theAdventure Travel Society in Englewood, Colorado, more than $110billion is spent on adventure travel each year. In addition,another $100 billion is spent on the outdoor recreationalequipment that goes along with vacationers on their trips.

Terry O'Connors is the owner of Rogue Excursions UnlimitedInc., an adventure tour company in White City, Oregon, thatorganizes river-rafting and fishing trips primarily on SouthernOregon's Rogue River. Since he started his operation in 1982,O'Connors has noticed that competition for adventure tourismcustomers has become fierce.

"Because people have so many more choices these days,customer service really comes into play," he says."We've had to become more aware of catering to our guestsand their individual needs. The modern-day customer needs a littlemore pampering and care than the old-school customers did. Forexample, there are a million different brands of beer and soda outthere, so you've got to do your homework prior to the trip tofind out what they drink. The fly fishermen want to use the exactweights of rods and lines they're used to, so you better findout where they're coming from, too."

Adventurers attending a Rogue Excursions trip only need to bringthemselves, their clothes, and, if they're going fishing, acurrent fishing license. O'Connors takes care of therest-making lodging reservations and transportation arrangements,collecting deposits, adjusting equipment, organizing meals, andplanning routes-from his home office.

So, after 15 years of leading tours, how does O'Connors keepenergized? "The river does it!" he explains."It's a different person every time you see it. Thedifferent water heights require different boating skills, and theseasons and wildlife change. If it's boring to you, you'rein the wrong profession. The off-the-river duties get old, but ifyou've done your homework right, once you hit the riverit's a piece of cake."

Hot Resource:

Adventure Travel Society

6551 S. Revere Pkwy., #160

Englewood, CO 80111

(303) 649-9016

Home Care For Elders

"Public demand for home health-care services is at anall-time high," says Margo Gillman of the National Associationof Home Care (NAHC). "This is due to an aging population,patients being discharged earlier from hospitals, and new medicinesand technologies which make it easier to provide highly skilledat-home care." In 1996, she notes, Americans spent $36billion for home health care, which is $9 billion more than in1995. Today, more than 18,500 businesses deliver home-careservices, up from 17,000 in 1995.

One of those entrepreneurs is Judy Rosen, a former educator inRoswell, Georgia, who founded Friend of the Family in 1984 to helpfamilies secure quality child and elder care. She's since movedher homebased business to an outside office, where 15 employeesplace 100 caregivers per day in temporary jobs and a dozencaregivers each month in long-term assignments. Rosen estimates hercompany's growth rate at 15 to 20 percent annually. In 1996,gross revenues reached $900,000.

"Our business is grown mostly by word-of-mouth," saysRosen, who acquires 100 new clients every month. "We'retrying to keep up with the demand. The only thing impeding ourgrowth is the difficulty of finding quality caregivers." Tomaintain her standards of excellence, applicants undergo a seriesof assessment tests, including CPR and a four-hour orientation onsafety and professionalism. "Our caregivers don't need tohave a medical or nursing background. Their duties are what we call'assisted living.' They help elderly clients with bathing,dressing, opening the mail, light housekeeping, monitoring use ofmedications, and other related tasks." Her staff checksreferences as well as driving and criminal records.

To help entrepreneurs start their own home-care placementagencies, Rosen has developed a business opportunity called FamilyFriend Management Systems. For $14,500, you receive the software,training in running the software program, and all documentsnecessary to start your own home health-care placement agencysimilar to Rosen's model.

"A home-care placement agency is a great homebasedbusiness. I ran mine from my home for 12 years," says Rosen."You need proper space to dedicate to your business, whichmeans a separate area to interview applicants, make phone calls,and maintain client records."

Hot Resource:

National Association

for Home Care

228 7th St. S.E.

Washington, DC 20003

(202) 547-7424

Specialty Catalogs

Open your mailbox and what do you see? Aside from bills andadvertisements, chances are, there's a catalog in there.

It's no surprise: Catalogs are hot. And if you've got aunique product that has a wide market demand, they can be a greatway to start a homebased business. According to the DirectMarketing Association, catalog sales generated $74.6 billion in1996. During that same year, an estimated 389,300 jobs weregenerated by catalog companies in the United States.

Denise Carpenter, owner of Victorian House in Janesville,Wisconsin, has seen firsthand how popular specialty catalogs havebecome. Over the past seven years, her company's catalog hasgrown from a single-page, black-and-white flier into a 12-page,four-color catalog, offering reproductions of Victorian-stylewedding, birth and baptism certificates. In addition to the13-by-17-inch certificates, the catalog also featuresVictorian-style thank-you notes, wedding program covers,invitations, birth announcements, place cards and stationery.

Carpenter, a mother of three, enjoys the flexibility of workingfrom home that allows her to volunteer her time at herchildren's school activities. "I've found that withcall-forwarding and a cellular phone, I can take the kids to thezoo and just have to walk off to the side to take an order once ina while," she says. "There I am, with a bunch of thirdgraders, when my pocket rings in front of the lions' cage, andI'm taking an order from California for Victoriancertificates."

Hot Resources:

Direct Marketing Association

1120 Ave. of the Americas

New York, NY 10036-6700

(212) 768-7277

Internet Consulting

Computer consulting isn't anything new. But teaching othershow to navigate the Internet and design and manage a Web site isthe hottest niche in the industry. Doug McBride, executive directorof the Information Technology Training Association (ITTA) inAustin, Texas, says, "Internet training didn't exist threeyears ago. Now we anticipate more than $1 billion in revenues bymid-1998 for computer-training companies offering Internettraining."

Steve Arbitman is one such homebased entrepreneur who'sanswered the call for Internet consulting. After 20 years ofworking for government and nonprofit agencies in Washington, DC, hedecided to turn his knowledge of data processing and computerprogramming into a business-Internet Marketing Associates.

To attract clients, Arbitman decided to teach computer classesat Mt. Airy Learning Tree, an open university near his Glenside,Pennsylvania, home. "It's a great way to make contact withpeople and get new clients," says Arbitman. "I wasautomatically identified as the expert, so if students neededsomething more, they hired me as a consultant."

Arbitman used his teaching experience to convince Mobil Oil Co.he was the right person to help employees of downsized companiesbrush up on their computer skills and learn how to use the Internetas a research tool and job-hunting resource. Today, Arbitman workswith individual clients, corporations and associations alike, andconducts seminars such as "An Internet Tour" and"Doing Business on the Internet."

Hot Resource:

Information Technology

Training Association

8400 N. Mopac Expwy., #201

Austin, TX 78590

(512) 502-9300, ext. 105

Medical-Billing Services

What do physicians, dentists, physical therapists,chiropractors, hospitals and pharmacies have in common? They'reall potential clients of an electronic medical-billing service,which files medical claims and bills clients for services.

"More health-care providers are realizing it's faster,more economical and more efficient to outsource their billingneeds," says Gary Knox, a consultant with AQC Resources, amedical-management-systems consulting firm in San Jose, California.Where's the greatest need? Physicians and dentists, says Knox."Currently, only about 40 percent of physicians' claimsand 12 percent of dentists' claims are handled by outsidebilling firms," he explains.

Merlin Coslick recognized the market potential for his servicesin 1990, when he launched his homebased business, ElectronicMedical Billing Service, in Watchung, New Jersey. "I haddeveloped computer skills as a stockbroker and wanted to combinethem in a business with a long-life potential," says Coslick."With the growing trend toward computerizing standard businessoperations, like client records and billing, and the growingconsumer demand for health-care services, I felt that a businesscombining computers and health care would have a long lifespan."

To attract clients, Coslick launched an aggressive marketingcampaign, which included making cold calls and mailing letters,brochures and postcards to doctors' offices. One client led toanother, and soon Coslick was operating a thriving medical-billingservice.

"Within the next four years, we will see wholesaleacceptance of electronic medical billing," he says."Those who enter the business now will be the specialists andconsultants to whom the medical practitioners turn for help."From his experience, Coslick says that a medical-billingsspecialist processing 300 insurance claims per month per clientshould expect to gross $10,000 annually per client.

Hot Resource:

Electronic Medical Billing

Network of America Inc.

P.O. Box 7162

Watchung, NJ 07060

(908) 757-1211

Crafts

The Association of Crafts and Creative Industries (ACCI) inZanesville, Ohio, estimates that the crafts industry now generatesclose to $10 billion in sales annually. Julie Fox, ACCI'sexecutive director, says that, in the past three years, a growingnumber of the companies contributing to these sales-both in theUnited States and abroad-is doing so from home.

Interestingly, crafts for the home made in thehome are cornering the market lately. "Two crafts themes areespecially popular right now," says Fox. "The first isanything for home decor-for instance, making pillows to match avalance to match a picture frame. The second is scrapbooks andmemories-picture frames, decorative keepsake boxes anddo-it-yourself kits to make these items."

The do-it-yourself spirit is certainly alive and well in MaxWong and Tanya Hekimian-two jewelry artists who design, assembleand sell hand-crafted necklaces, bracelets and earrings from theirhomes in Los Angeles.

"I saw a necklace in a catalog that I really wanted to wearfor the holiday season, but it was beyond my financialresources," explains Hekimian. "So I told Max about itand she said, 'Let's just go to the bead store and makeit!' " Once the women found a way to create a replica ofthe necklace-which was being sold for $75 in the catalog-for only$2, the idea for their jewelry business, Chickadee, was born.

Hekimian and Wong, who both hold full-time jobs in theentertainment industry, started Chickadee in 1995 by investingabout $1,000 each for supplies, tools, business cards, packagingand gift-wrapping materials. Now, in their spare time, the two selltheir designs at jewelry parties, through custom orders and inupscale boutiques around town.

"About 30 percent of our sales are from customorders," says Wong, "but most of our revenue is generatedthrough our jewelry parties." At these events, which operatemuch like Tupperware parties, the host provides refreshments, apartial mailing list of attendees and the gathering space. Wong andHekimian, who also invite their roster of regular clients to theseparties, then arrive with the jewelry, make sales and take customorders.

To attract new clients and to keep their regular customersdevoted to their products, the Chickadee owners place particularimportance on keeping their designs fresh and innovative."We've recently been experimenting with designs thatincorporate unique materials," says Wong, "such asCzechoslovakian glass and antique beads-items that are no longermade and were originally made by hand."

Ultimately, Wong and Hekimian would like to be able to displaytheir creations in a greater selection of retail locations aroundtown and expand their business into an operation with a productionstaff.

Hot Resource:

Association of Crafts

and Creative Industries

P.O. Box 2188

Zanesville, OH 43702-2188

(614) 452-4541

Contact Sources

AQC Resource, 175 N. Buena Vista Ave., San Jose, CA 95126, (408)295-4102.

Chickadee, 3848 1/2 Valleybrink Rd., Los Angeles, CA 90039.

DC Falter Marketing, 596 Malibu Dr. S.E., Lacey, WA 98503, (360)491-7551.

Denton & Co., 2618 Observatory Ave., Cincinnati, OH 45208,(513) 871-8807.

Friend of the Family, 880 Holcomb Bridge Rd., #160B, Roswell, GA30076-1999, (770) 643-3000, ext. 200.

Healthcare Matters Inc., 607 Broad St., #110, Rome, GA30161-3059, (706) 234-6442.

High Performing Systems Inc., 400 Oak St., Ste. E-3, Cincinnati,OH 45219,

(513) 474-1137.

International Coaching Federation, P.O. Box 1393, Angel Fire, NM87710, (888) 423-3131.

Internet Marketing Associates, 8714 Patton Rd., Glenside, PA19038, (215) 233-9004.

Rod Nichols, P.O. Box 912, Tacoma, WA 98401, (206) 564-0284.

Rogue Excursions Unlimited Inc., P.O. Box 2626, White City, OR97503, (541) 826-6222.

Victorian House, 1203 Columbus Cir., Janesville, WI 53545, (608)758-9050.