Coffee Break Chat

Call them the "homepreneurs"

They are the people who have created home-based businesses. They account for more than half of all the businesses in the U.S. And they employ more people than venture-backed companies.

According to a BusinessWeek.com account, the rise of home-based businesses can be traced to the early days of telecommuting in the 1980s and the mass adoption of the Internet in the 1990s. Cloud computing (think Google Docs), online collaboration, and smartphones have accelerated the trend.

Beyond the technical aspects, according to the BusinessWeek.com story, is the greater acceptance of the legitimacy of a home-based business.

You don't necessarily need an office. Homepreneurs meet clients at their offices or at coffee shops, and -- when there's a need -- most areas have on-demand office space, where a conference room can be rented by the hour. Certainly, that makes for lower operating costs.

The BusinessWeek.com story cited a 2006 study by the Small Business Administration that compared tax returns of homepreneurs who deducted home-office expenses with those who deducted commercial rent. The SBA found that home businesses, on average, had lower sales and net profits than companies in commercial spaces, but the profitable home-based ventures retained a greater share of their total receipts as net income: 36 percent vs. 21 percent for non-home-based businesses.

The trend of home-based businesses is seen as continuing to rise, perhaps doubling within the next 20 to 30 years.

State, UNH launch Green Launching Pad for commercial environmental projects

 
 
The University of New Hampshire and the New Hampshire Office of Energy and Planning have just announced a new initiative, The Green Launching Pad, designed to use UNH resources to help launch new "green" businesses in the state. The Green Launching Pad will connect entrepreneurs and private industry with the technical, scientific and business faculty and staff of UNH, with a goal of creating a competitive green energy technology commercialization program. Teams working on a project will receive up to $90,000 in funding. Project selection will be competitive and must be in the areas of energy efficiency, energy conservation, renewable energy, and/or sustainable energy--those that will quickly lead to energy savings, emissions reductions, and business and employment growth. Pre-proposals are due March 15. This link takes you directly to the pre-proposal information.

 

The new businesses would be required to help the State achieve the objectives of the NH Climate Action Plan with an emphasis on reducing carbon emissions in sustainable ways while creating new jobs and contributing positively to the state’s economy. A series of seminars are being held for interested parties. Consult the website for event details.

Small business proposals offered in State of Union address

In his State of the Union message President Barack Obama offered a series of proposals to Congress to help stimulate jobs and the economy by helping small businesses. Then he took his message to Nashau, New Hampshire. We'll report on that visit in another blog post to come.

"We should start where most new jobs do -- in small businesses, companies that begin when an entrepreneur takes a chance on a dream, or a worker decides it's time she became her own boss," he said in his speech.

He offered the following incentives to the small business men and women:

• A new lending fund for entrepreneurs to get credit flowing again

"I'm proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat."

• Tax credit for small businesses that hire workers

"I'm also proposing a new small business tax credit -- one that will go to over one million small businesses who hire new workers or raise wages."

• Eliminate capital gains taxes

"While we're at it, let's also eliminate all capital gains taxes on small business investment, and provide a tax incentive for all large businesses and all small businesses to invest in new plants and equipment."

• Double the market for exports

"We will double our exports over the next five years, an increase that will support two million jobs in America. To help meet this goal, we're launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security."

• Reform health care

"I also know this problem is not going away ... Small business owners will continue to drop coverage altogether.  I will not walk away from these Americans, and neither should the people in this chamber."

Will these ideas help your small business? Let us know by commenting below.

Tech seed money was scarce in 2009

Start-up money for new technology companies often comes from venture capitalists.

In 2009, not so much.

And some people, according to an article in the New York Times, say that's a good thing.

Overall in 2009 in terms of venture capital investment, according to statistics cited by the Times, venture capitalists invested $17.7 billion in 2,795 start-ups. That's 37 percent less cash and 30 percent fewer deals than in 2008. But Internet companies took the largest decline as investments declined 39 percent.

The one exception was Twitter, which raised $100 million in venture capital and was one of the 10 biggest deals overall in 2009.

“There was too much money in the system,” Jeff Fagnan, a partner at the investment firm Atlas Venture, said to the Times. “It would be healthier if we can return to the pace and kind of deals that were done in the 1990s.”

As in before the huge investments into tech companies and the resulting dot com bust that left many reeling.

While some believe that the slowly improving economy will mean greater venture capital investment, others believe the overall slowdown will continue in 2010.

Wild for Innovation workshop for business owners March 5

The University of New Hampshire Wildcats, the Whittemore School of Business, the New Hampshire Division of Economic Development and Public Service of New Hampshire will host a workshop March 5 at UNH aimed at teaching businesses how to build teams, develop effective leaders and stimulate innovation. The workshop begins at noon and is limited to 100 participants. Cost is $50 per person. Companies are encouraged to register their teams online as early as possible by visiting wildforinnovation.eventbrite.com.

Participants will attend classes on innovation and leadership effectiveness from Whittemore professors, experience the innovations in the College of Engineering and Physical Sciences, and work directly with UNH athletics coaches on team building.

 

A BBQ tailgate party, a team picture and reserved seats to see the nationally ranked Wildcat hockey team in action against the Boston College Eagles is included.

"Innovation is a team sport and we know that great teams don't just happen. It takes practice, focus and commitment to be successful year after year." said New Hampshire Division of Economic Development Interim Director Roy Duddy.

The workshop sessions will address opportunities for every type of New Hampshire business, from the service sector to the emerging areas of renewable energy and nanotechnology. "In the next ten years, start-up companies and corporate stalwarts will all face the same challenges, and those with the best leaders and strongest teams will be most likely to succeed," Pat McDermott, the Economic and Community Development Manager at Public Service of NH, the lead sponsor of the event.

A brief review of the pros and cons of owning a business

If you’re already in business, you may not need to review this handy list of the pros and cons of business ownership, but it probably won’t hurt either. If you’re considering starting a business, this short article gives and excellent overview of all that you may accomplish—and the risks you’ll take—in running your own small business. One key point: Small business owners are more likely than others to have high pay.  Now that may not be reason enough for you to give it a try, so review this list.

If you’re already a New Hampshire business owner, write us here with your own list of “pros and cons”. Just click onto "comments" right below.

Marketing, marketing, marketing

It’s all well and good to have a great service or product to sell, but if nobody knows about it, your idea is going to die on the vine. That’s why any successful business owner has to market with a vengeance—or hire someone who will do it for you. The Business.gov website has compiled an excellent online list of marketing articles and resources, including how to conduct market research and how to comply with advertising laws.

Key tip: Learn as much as possible about your potential customers.

New free, online course: Starting a Business in New Hampshire

Last week we here at the New Hampshire Small Business Development Center officially launched Starting a Business in New Hampshire,  an addition to our e-Learning for Entrepreneurs courses.  This course addresses such topics as how to register a business name, the forms of business organization, taxes and licensing, insurance, and business plans, and it provides website links and other resources. Taking the course--it's free and online, available 24/7---would make a great first step for anyone considering starting a business in New Hampshire.  It takes about one and a half hours to go through the 65 slides that are part of the course and you can stop and start again at any time.  For questions about the course, please call 603-227-0417.

E-Learning for Entrepreneurs is sponsored by Public Service of New Hampshire, the New Hampshire Division of Economic Development, and the University of New Hampshire. Its creation was funded by a grant from the U.S. Small Business Administration and overseen by the board and staff of the NH-SBDC.

Will there be a new wave of young entrepreneurs?

This article from Crain’s of New York  indicates that young people may be the next wave of new entrepreneurs.  The Kauffman Foundation predicts a “coming entrepreneurship boom” among people ages 20 to 34 because young people have been inspired by the likes of Google, Facebook and Twitter—successful businesses all started by very young adults—and because they see the “traditional” job market just as risky for them these days. Young adults seem to benefit from having smaller companies and fewer financial responsibilities, which leads them to taking innovative risks.

Do you know successful, very young entrepreneurs in New Hamsphire? Write us here with a mention of them.

On-line businesses can look for ways to cut costs

Some old and new entrepreneurs are deciding to do business completely online.  This 2009 article from the Arizona Small Business Development Center pinpoints some ways that those who sell online can cut their own costs and be more efficient. One recommendation for those thinking of going totally online is to learn how to design and build websites to avoid the cost of hiring web designers or developers. Other tips are to not buy in bulk, but to use a “drop shipper” to use when orders are to be fulfilled. Check the full article here.