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 Home Based Businesses Have An Advantage

"Home businesses are not just the realm of people without 'real' jobs who want to earn extra cash. On the contrary, the study found that while having fewer employees, home-based business people on average had significantly higher net worth than their workplace-bound counterparts."

- A study by the SBA's Office of Advocacy.

"Technology is making it easier and easier to manage more effectively, enabling the entrepreneur, for example, to do expenses, calculate profitability, and track the month's projects all with a few keystrokes."

- Bruce Philips, SBA's Office of Economic Research

In the past a home-based business was by definition a very small business. This is changing. Technology now facilitates handling larger volumes of business with greater ease than ever before.

Business owners now use their computer for many tasks. It can answer the phone, and either page them if they are out or announce the call. If caller-id is available from the phone company, then the client history can automatically show on the computer screen; ready to type in today's conversation. The computer can also keep track of appointments and pop up a reminder on the screen when it is time return a promised call.

Computers simplify the whole sales process - from customizing standard sales letters with specific prospect information, printing addresses on hundreds of envelopes and sorting them by zip code, to an interactive catalog on CD-ROM.

The WWW can also benefit a home-based business. It permits a start-up or home-based business to appear large. In fact, a small business may have an advantage over a larger business because the smaller business can respond faster to a changing market.


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