What makes the home-based business different from the office-based business other than the location? No matter what kind of home-based business exists, there are, of course, advantages and disadvantages. The benefits most certainly outweigh the challenges, according to Andy Hunt of Pragmatic Programmer, Sam Bayer of MarketAcuity and Michelle Yanik, co-owner of Smart Moms. While these business people launched and maintain three different businesses, they all have one thing in common — their enthusiasm and passion for their own home-based companies. “I’m on my way up, and I don’t know where the elevator stops,” Hunt says. As a software consultant for Pragmatic Programmer, Hunt writes programming books for all sizes of businesses that need software development.
After starting his business with co-programmer Dave Thomas, Hunt realized that there is an audience that wants to read what he publishes, allowing his books to reach top-ten bestseller lists alongside “Harry Potter.” What makes Pragmatic Programmer a successful business is that it “writes for programmers because we are programmers,” Hunt explains. The company also writes books for non-programmers so that people can teach their spouses, children or anyone else. “Once you get a good rhythm, it is easy enough to go further and pick your audience,” Hunt says. “We can operate such large organizations with two people because with software development, the third partner is the computer.”
Because computers and the Internet have become hot commodities, companies have been able to grow with very little outside help. Everything is on the Internet now, and because of the convenience of laptops, a lot of work can get accomplished from anywhere. “With the technology today, it is easier to be productive from home,” Yanik says. It also is easier to reach clients from home with the support of the Internet. “We sell electronic books as well because it is really very popular. There is no shipping and no taxes,” Hunt says. “We have been able to grow with very little help.” There are spam filterers, people to replace parts on computers and book distributors, and other sources of aid. These benefits allow companies to become more successful while keeping employees at home.
“You can’t beat the commute, and the dress code is pretty informal,” says Sam Bayer of MarketAcuity. “It wasn’t as popular when I started. There were stigmas about staying at home, and now more people aspire to it. I take two months off each year and make more money than I’ve ever made.” For almost 20 years, Bayer has been looking at how companies use software and commercialize it. He finds ways to develop software into something useful that employees can effectively understand and that makes the process more profitable for the company.
“I’ve repeatedly observed that there is an incredible amount of time, money and human potential wasted in the development of application software,” he says. While the advantage of helping a company in such a way is a large one, Bayer also appreciates the capability of stepping away from his company if needed. “If I feel like going up to the home gym or out for a bike ride, I just do it,” he says. Another benefit raised by Hunt and Bayer is the monetary side of the businesses. For Bayer, the few fixed expenses and tax deductions have helped, while for both, the income and self-funding have enabled them to continue to be successful businessmen. As far as the economic impact of the home based business is concerned, “Starbucks and the local restaurants are very happy with me when I have company lunches with clients,” Bayer says.
Michelle Yanik, co-owner of Smart Moms, maintains a different business but still reaps the benefits of her home-based company. Smart Moms, a staffing agency that works with stay-at-home moms, is a business that recruits mothers who want to re-enter the workforce. Similar to Bayer and Hunt, Yanik says a benefit of Smart Moms is the ability to keep a flexible schedule at home. The capability to stay home, be productive and do work outside of business hours while having accessibility to family also are benefits.
Yanik asserts that they enjoy “not having to go out on a daily basis and miss the things they stay at home for.” A nice advantage to Smart Moms as a business is the word-of-mouth spread to friends. The same idea goes for MarketAcuity and Pragmatic Programmer. “You can advertise all you want, but people will buy something ultimately because their buddy said it was cool,” Hunt says. Because of verbal advertising, a daily feed of resumes mixed with the great need for at-home work helps Smart Moms thrive and, in turn, helps the businesses with which they work to thrive.
An extraordinary benefit for employers of Smart Moms is the ability to keep employees without adding space in the office. Employers also can save money by having employees use their own equipment at home. “The employee can get work done without the employer looking over her shoulder,” Yanik explains. Another benefit is that the moms are multi-taskers, based on their other roles of being mothers. “They understand the benefit of working at home,” Yanik says, “and they take advantage of that.” The average job for Smart Moms is an ongoing relationship. According to Yanik, this kind of consistency is ideal for moms, and sometimes after an employee works for a while, an employer can add her to its payroll.
With so many advantages to running a home-based business, it is easy to see why these companies have been so successful. The trouble-free commute, the convenience of the Internet, and the freedom of working on a loose schedule are some of the major benefits that help to make the home-based business an attractive and lucrative endeavor.
