Alice Bredin
People often ask me what kind of business to start.
If I had the perfect answer, I would gladly mete it out to those who need it. Unfortunately, I can only point people in the right direction by providing some steps for uncovering great opportunities.
A key element to developing a winning business idea is market data. I am a proponent of choosing a business that interests you, but unless the marketplace wants what you sell, all of the passion in the world won’t help.
At the moment, one of the most promising revenue arenas is providing technical services and products to small businesses. A strong economy, affordable technology and plentiful funding resources have encouraged start-ups.
Firms in this burgeoning market usually operate with a small staff and limited resources, and look for external resources to manage technology needs. While many of these entrepreneurs are sophisticated in their chosen fields, they rarely have breadth and depth of technical expertise.
My staff and I recently contacted research companies to gather statistics about small-business technology spending. According to the research, the technical services demanded most by small businesses include Web site hosting and design, technical consulting and training, Internet service, voice and data installations, and long-term system maintenance.
Certainly, competition for providing technical services to small businesses is stiff. I recommend pursuing a business in this arena only if you have experience and training to back you up. If you have the skills, providing these services to small businesses could be a great way to build your own company. Imagine the advantages of becoming a reliable vendor to a small company that is destined to become the next Starbucks.
If you are qualified and interested in pursuing technical work, use some of the figures below to find the best opportunities.
? Web-site design. According to market researcher Cyber Dialogue, when small businesses first design a Web site, they spend an average of $2,600. Multiply this by an estimated 1.6 million small businesses that have Web sites, and you’ll find these companies are spending $4.2 billion on design services.
? System consulting and integration. Analysts from Sherwood Research, an Internet technology research company, predict small businesses that want to implement Web sites will spend almost $1 billion in 1999 for related services, growing to $1.7 billion in 2000.
? E-commerce capabilities. Some analysts believe that less than 5 percent of U.S. small businesses have an e-commerce Web site. Revenue from e-commerce implementation by the remaining companies is expected to grow to more than $328 billion by 2003.
? Dedicated access. Research indicates that the number of small businesses using dedicated connections to the Internet (private lines reserved for designated users) will grow from about 90,000 in 1996 to just under 800,000 in 2000. This represents a 73 percent compounded annual growth rate.
? Web site hosting. Cyber Dialogue estimates that small businesses that use an outside service for site hosting spend an average of $64 a month for these services. Because there are more than 1.2 million small businesses that choose this option, this market represents revenue potential of more than $76 million per month, or $922 million per year. This number is expected to more than double next year.
? Applications. Sherwood Research predicts that companies with 100 or fewer employees will spend just under $10 billion on software this year, and almost $12 billion in 2000.
Staying in touch
I recently interviewed a writer for a part-time position on our editorial staff. She wanted the job, in large part, to supplement her home-based freelance work with some assignments that would make her part of a team.
Despite a busy writing schedule, a family and other activities, this writer was feeling isolated in her home office.
If you suffer from home-based isolation, you may fear that you’re not cut out for working from home. In reality, battling social detachment is a challenge for most home-based workers.
Often in attempts at efficiency, home-based workers have items delivered to the house or arrange for spouses and others to pick up important items on the way home in the evening. While this approach frees up time for work, it leads to isolation.
In my previous column, I discussed how to recognize signs of isolation. Here are some ways to battle it:
? Get out. While leaving the house may sound like an obvious solution to isolation, many people are surprised at how effective even a short foray out of the office can be. Walking a dog or running a short errand can expose you to sights and sounds that keep isolation at bay.
? Listen to the radio. While you work, keep the radio on at a low level to avoid feeling isolated during long stretches of silence. Many people maintain such low volume levels that callers to the office cannot hear the background noise.
? Call someone. Make time once per day to phone a friend or family member. If you easily get drawn into long conversations, use e-mail for communication instead. E-mail gives you more control over how long the conversation lasts and when you give your attention to it.
? Take or teach a class. Enroll in a continuing education course or consider teaching one yourself. Taking a class can build your skills, and teaching a class is a great way to get your name out and to build your home-based business.
? Join an industry group. Make your social time doubly productive by meeting with others who work in your area of expertise. For instance, if you’re a Web site designer, you might attend lectures sponsored by a local technology or graphic design group. Events such as these also offer great networking opportunities.
? Organize a weekly neighborhood activity. Arrange a weekly get-together with others in your neighborhood who might need a break from isolation. A personal trainer I know started a morning walk for mothers who lived in her neighborhood. The women would gather to take a brisk walk when their children left for school.
? Volunteer. Perhaps the most altruistic way to battle work-at-home solitude is to give some of your time to the community. Whether it’s working in a soup kitchen or helping at a non-profit foundation, volunteering can provide a sense of fulfillment and a break from home-based solitude.
? Meet local business people. The next time you visit a local vendor, perhaps to mail a package or to pick up business cards, learn the names of the people who work there and find out something about them. Establishing relationships with other professionals in your area can break up your day’s monotony and can make daily errands more enjoyable.
Alice Bredin is author of the “Virtual Office Survival Handbook” (John Wiley & Sons) and a nationally syndicated columnist.
