Remember the old adage “numbers don’t lie?” Well, if you’re considering starting a home based business numbers may be the deciding factor which sway you in favor of taking the plunge. For example, in terms of success rates, about 70% of home-based businesses will last over a three-year period, compared to 29% of other business ventures, according to the Home-Based Business Institute.
Entrepreneur magazine estimates that $427 billion is generated each year by home-based businesses. (Pittsburgh Business Times) That’s bigger than General Motors, Ford, and Chrysler all put together. 89% with household incomes greater than $80,000 have a home office compared to 14% of those with incomes below $25,000 (Find/SVP). A recent IDC survey indicates that the average income for income-generating home office households is $63,000 a year. (Stats courtesy of Kristie Rimmele, kristiet.com)
These are certainly compelling statistics in favor of becoming a home business owner. However if you need further convincing maybe the current economic climate and the soaring unemployment will help you make up your mind. The average unemployment rate in the United States rose from 4.6% in 2007 to 5.8% in 2008 and then took an alarming jump from 5.8% in 2008 to 9.3% in 2009, and it continues to climb.
According to the Financial Post: “Unemployment for African Americans is projected to reach a 25-year high this year, and a study released Thursday, May 27, by an economic think tank, had the national rate soaring to 17.2 percent and the rates in five states exceeding 20 percent. Moreover, the unemployment gap between men and women has reached a record high — with men far outpacing women in joblessness.”
Inflationdata.com says: “At this point the inflation rate is neither in the long term down trend nor in the six year uptrend but remains in sort of “no man’s land”. Indicating what we have been saying for quite some time that it really could go either way. We could have a deflationary depression or a hyperinflationary depression but either way we end up with a depression.”
The current condition of the stock market is another concern. Adam Hewison, President INO.com says on his blog: “There is no quick fix for the economy. I expect to see a prolonged economic climate that is not conducive for stocks to move higher. However, there will be pockets of opportunity where certain markets and sectors will move higher. All in all, this is not a rosy picture for either the US or world economy. As I have said many times on this blog, these are trading markets and not markets to hold long-term.”
And then there’s the federal government’s bailout of our financial institutions. The editor at Inflationdata.com says: “Based on the magnitude of the bailout expenditures it appears Hyperinflation is already baked into the cake. You thought WWII and Iraq were expensive? You “ain’t seen nothin’ yet. The current bailout is larger than all the major government expenditures since the revolutionary war combined. In three months, Paulson and Bernanke spent more than twice the cost of all of WWII.” This begs the question, how are we going to pay for all of this?
As Adam Hewison said, this isn’t a rosy picture for either the US or world economy, and the associated financial worry and stress of day to day living and working and trying to pay the bills for the average American is becoming more of a widespread problem than ever before. Because of this many more people than ever before are turning to home based business ideas to help alleviate their financial stress. Maybe it’s time you did too?