Chapter 1. Next StopHome

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Every day, 60 million (yes, million) people are getting out of bed, walking in their bathrobe with a cup of coffee to a desk somewhere in their home or apartment, and working from home. They have a 60-second commute. One minute. No subway , no obnoxious guy or gal in the next cubicle , just freedom. In the era of faxes and e-mail, it has become a new American dream. Is it a passing fad? Not according to builders who predict that in the next 5 years , almost all new homes will have dedicated home offices sketched into the blueprints. There's a buzz out there, and it's making its way across the countrywork from home, pursue what you love, and take hold of your own life. Want to join them but not sure if you're ready? Here's a little surprise for youyou are already on your way.

Why People Decide to Work From Home

Tired of being a road warrior
Desire to be their own boss
Want to escape from the corporate world and the doldrums of middle management
Have been "Enron'ed"
Feel restless, underappreciated, and underpaid
Caught by the dot.com layoffs or corporate downsizing
Pushed out by age
Wish to be at home raising children
Yearn for flexible hours
Want to supplement their incomes

A person makes the decision to work from home for a lot of different reasons. For some people, the decision is like a loud gong sounding in their heads, "That's it! I've had it. I can be just as productive and a lot more comfortable at home." For them, the 6:47 A.M. commute on the train in the rain, snow, sleet, and hail has lost its zing. Or perhaps sitting snarled in traffic for the billionth time no longer holds the same magic. For others, it's about taking a risk and going for a life-long dream even if your family thinks you've flipped . Some people wish to spend more time with their kids. They figured out how to work and still be able to get the kids to music lessons, soccer, or Karate. They understand that time moves extraordinarily fast, and in the blink of an eye, children are grown and asking for your car keys. Others realize that working from home, whether it's starting a small business, consulting, telecommuting , or freelancing, is a wonderful way to boost their income. For them, the additional income helps pay for retirement, mortgages, vacations , school tuitions, or perhaps a little cosmetic surgery. The bottom line is that we are all motivated by different interests.

60 Seconds with Neil Smith

Neil Smith is the founder of a unique consulting firm, EHS Partners. With 19 professionals in 14 cities, it truly is a cutting-edge company. Smith's company consults with major corporations to dramatically increase their earnings. His philosophy is simple, "We must do one thing and one thing onlyand be the best at it." Smith attracted the best professionals with the lure of working from home and by not having to relocate. Today, EHS Partners may be one of the largest "virtual" companies with revenues in excess of $30 million.

The greatest numbers of telecommuters can be found in industries that handle information, such as high-tech industries, banking, publishing, insurance, marketing, public relations (PR), advertising, consulting agencies, and some state and federal agencies. For an in-depth listing of companies with telecommuting programs, we recommend you visit the website Work-At-Home-Success at www.workathomesuccess.com.

Advances in technology, especially computers, faxes, and modern telephone systems with capabilities like teleconferencing (something we used while writing this book!), make working from home a bonus for telecommuters and a real opportunity for entrepreneurs and small business owners . Today's technology is so user -friendly, affordable, and portable that you can work from virtually anywhere traveling on an airplane, vacationing, or watching your son's ice skating practice.

Name Calling

Ask a person who works from home what he or she does and they might use any of the following titles:

Freelancer
Consultant
Entrepreneur
Self-employed
Mompreneur
Dadpreneur
Small business owner
Home-based businessperson
Independent contractor
Telecommuter
Teleworker
Moonlighter
Open - collar worker

The numbers of those who are taking the leap and working from home is growing at a very fast rate. In fact, the federal government estimates that in 2002, 60 percent of Americans will spend some part of their workweek at home. That means that more than half the working population works from a home office (even if that's just their kitchen table). The International Telework Association and Council's annual survey shows that the number of employees who telework in the United States increased to 28.8 million, a jump of nearly 17 percent in just 1 year.

There is no question about itwomen are rocking the home-based business world, making up one of the fastest -growing groups in the home office market. Perhaps out of a desire to be in charge of their own careers or a need to figure out a better way to earn a living and raise children, women are pushing the possibilities further every day. According to data from the U.S. Census Bureau and the National Foundation for Women Business Owners, there are over 3.5 million home-based, women-owned businesses in the United States. What is more, these businesses provide full- or part-time jobs to over 14 million people.

While a homemaker raising children, Lillian Vernon started a gift and home furnishing home business from the kitchen table in 1951. Today, Lillian Vernon's mail order catalog empire grosses over $241 million annually.

Home-based businesses have become viable professional options. Corporate downsizing and dot.com layoffs have prompted men and women to think outside the box and pursue alternative ways of earning a living. According to the American Home Business Association, 8,000 people start a home business every daythat's 1 every 11 seconds. Today, estimates show that over 40 percent of the workforce in the United States operates from home. A large percentage are the entrepreneurs who have decided to take a chance and begin something all their own. The Kauffman Center for Entrepreneurial Leadership estimates that about 2 million one-person new businesses are started each year. There are about 33 million entrepreneurs working by themselves from home.

Big Dreams, Big Successes

The following is a list of individuals, some you may certainly recognize, who started out with a few dollars, a big dream, and a burning desire to blaze their own trails:

Michael Dell: At the age of 12, Michael Dell was already an entrepreneur selling thousands of dollars of mail order stamps from his parents' home. As a senior in high school, Dell made $18,000 selling newspaper subscriptions to newlyweds. Against his parents' wishes, he dropped out of college at 19 to sell computers. Now in his 30s, Michael Dell is a billionaire and his company, Dell Computers, is a top Fortune 500 company with sales in excess of $31 billion dollars.
Martha Stewart: Martha Stewart's love for cooking and entertaining was so strong that while living in a 19th century farmhouse in the upscale bedroom community of Westport, Connecticut, she started a catering business. Her life has been in fast forward ever since. On October 19, 1999, Martha Stewart took her company public and became a billionaire. The Martha Stewart Living Omnimedia, Inc. empire includes 4 magazines; over 50 books on cooking, entertaining, crafts, and decorating; a cable television show; a syndicated column; a radio show; an Internet site; mail order catalogs; and over $763 million in annual sales for home decorating and furnishings. Though she has recently taken a beating in the public eye, Martha seems to be a survivor .
Jeff Bezos: In 1994, Jeff Bezos quit a successful career and jumped into his Chevy Blazer with his wife and dog. Bezos wasn't exactly sure where he was going but figured he would know when he got there. Bezos believed that selling products on the Internet could be very successful and kept a list of products he wanted to sell online. When the couple landed in Seattle, Washington, they decided to stay. They rented a tiny house, and with very little money to spare, converted the garage into a warehouse for books. Today, Amazon.com is the world's largest bookstore. Bezos, now worth over $10 billion dollars, has been coined the "king of cybercommerce."
Margaret Rudkin: In 1937, Margaret Rudkin began baking and selling a variety of fresh breads from her home. Thirty years later, her little bread business, better known as Pepperidge Farms, was enjoying sales in excess of $32 million when she sold it to the Campbell Soup Company.
Ruth and Elliot Handler: Ruth and Elliot Handler, along with partner Harold Matson, created a picture frame company in a garage. When the partnership ended, the Handlers decided to make doll furniture and toys and called their company Mattel Toys. Ruth had a vision for a doll, but no one in the marketing department took her very seriously. Three years later, the doll named after her daughter , Barbie, was the talk of the 1959 New York Annual Toy Fair. Over 40 years later, Barbie is enjoying more success than ever. It's been said that if placed head to toe, Barbie dolls could wrap around the earth seven times.
Bill Hewlett and David Packard: Bill and David's excellent adventure began in 1938 in Packard's garage in Palo Alto, California. Hewlett and Packard were classmates at Stanford when a professor convinced them to start an electronics company. With barely $500 between them, the two friends rolled up their sleeves and got started. In 1972, their hand-held calculator called the HP-35 was a wild success and marked the beginning of the personal computing industry. Today, the Hewlett-Packard corporation earns over $47 billion a year. The garage where it all started is now a registered historical landmark and reads, "The birthplace of Silicon Valley."
Hugh Hefner: In his silk pajamas and slippers, Hugh Hefner has to be the quintessential home office entrepreneur. As the founder and publisher of Playboy magazine, Hefner has been working from home for nearly 50 years. Hefner's dream was to create a mainstream men's magazine that included talk and photos of nude women. The course of Hefner's life changed forever when he acquired photographs of the young Marilyn Monroe in the nude. With the photos in hand and a loan from his mother, Hefner launched Playboy magazine. Hefner did the first layout of the magazine at his kitchen table. The first issue quickly sold out, and Hefner's empire was born. He broke new ground by weaving his sophisticated and relaxed view of sexuality into the pages of his magazine. Hefner didn't want to just talk about the Playboy lifestyle, he wanted to live it. In 1971, the company went public on the stock exchange. The magazine was selling at a rate of over 7 million copies a month. Hefner expanded the Playboy name beyond the magazine by opening 23 adult clubs where beautiful women in provocative " bunny " outfits served drinks; producing a television show, adult movies, books; and licensing the Playboy name. Today at age 77, Hugh Hefner is still working and partying from the Playboy mansion and living lifehis way.

Another population not to overlook are the baby boomers who are growing olderalbeit grudgingly. Americans who were born between 1946 and 1964 are 76 million strong and represent the largest single sustained growth of the population in the history of the United States. For this group , 50 is definitely not old. Many baby boomers would say that they're just getting started. The fact is, we are living longerand living well. Travel through the Sun Belt statesFlorida, Arizona, Nevada, New Mexico, and Texasand you'll discover legions of seniors well into their 70s, 80s, and even 90s who are living full, meaningful lives. Not only are they playing golf and tennis, but they're working. A growing number hold part-time jobs, freelance , act as consultants , or develop small businesses right from their home. Use the word elderly around this crowd and you could get hurt.

Life expectancies are increasing in the United States. In 2000, the over-65 population grew to 34.9 million. In the first decade of the 21st century the over-65 population will grow another 10 to 12 percentbut between 2010 and 2030, the projected increases jump to 31.2 percent and 25.6 percent as the baby boom generation finally becomes senior citizens . In the year 2030, 21 percent of the population, or 65 million Americans, will be 65 years or older ( World Almanac, 2001, p. 368).

The American Association of Retired Persons (AARP) reports that baby boomers have put an interesting spin on retirement. Traditionally, the transition into retirement meant long leisurely days filled with reading, puttering around the house, and afternoon naps. Many baby boomers8 in 10say that they plan to continue working after they retire, at least on a part-time basis. One reason is because we're all living longer, healthier lives. Some see retirement as the beginning to the second half of their lives. Trends suggest that baby boomers are starting new careers, going back to college, creating niche businesses, and living their dreams, such as opening up bed and breakfast inns.

The other reason baby boomers plan to keep working after retirement is economics. Living longer means that your retirement dollars have to stretch further to ensure you don't outlive your savings. Currently over 65,000 people 100 years and over live in this country. So ask yourself this question: Do I have enough to live on if I should live to be 100?

Do You Have Enough to Retire?

To begin with, you'll need 70 percent of your annual preretirement income to maintain your current lifestyle during retirement.

Step 1: Calculate the amount equal to at least 70 percent of your income.
Step 2: Figure out if your retirement planSocial Security benefits, savings, 401(k)s, and other pension planswill generate enough income.

How do these calculations figure up to the plans you're making? Will you have enough?

No question about it, there are rewards and drawbacks to working from home. While the benefits include a 60-second commute to your home office, more control over your life, and freedom from the corporate world, it also calls for equal parts of discipline, organization, and flexibility. Unlike the office, there's no boss hovering over your shoulder checking to see what you're doing. Because you are the king or queen of your own domain and can make your own hours, there's always the temptation to put things off until later. Additionally, when you work from a home office, you're never really away from work because it's always therein the other room. Running a household, balancing family life, and defending yourself from countless interruptions can be enough to push you over the waterfall (on some days).

The Downside of Not Working at the Office

No impromptu chats and meetings with colleagues means less feedback
Not being able to escape from work
Being interrupted by family and friends
Having work interfere with family relationships
Feeling overlooked by management back at the office"Out of the loop"
Fear that working from home will hurt chances for career advancement
Feelings of isolation and loneliness
A tendency to overwork to prove your worthiness at the office
Trying to sound "professional" with background noise and perhaps children's sounds and commotion when on the phone
Sometimes it feels as if your day is never going to end

The Upside to Working From Home

No more hectic commutes
No boss breathing down your neck if you're a few minutes late
Less need for suits , dresses, ties, high heels, or pantyhose
When your child is sick, you don't have to ask permission to stay home
You can attend events at your child's schooleven be class parent
You are more available for your children
Advances in technology link you to business without having to leave the comfort of your home (or your pajamas)
You can plan your work schedule around your life
No more office politics and power struggles
You have the potential for making more money

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