Low Overhead and Home Based Business
I was meeting at lunchtime with some businesspeople who own a retail store. And the talk centered around lamenting the economic conditions. They had a sense of panic as they will have to make severe cuts in personnel and other areas. As I listened to their dilemmas with less-than-predicated sales levels, I thought afterwards how different it with a home based business. Oh sure, I am not getting as much business as I would like and a good part of that might be due to the economic fears everywhere they were talking about.
But as a home based business, I don’t have the overhead! I don’t have employees to pay, I don’t have office and warehouse space to rent, I don’t have telephone equipment leases, etc. I work for myself with the help of a contract Bookkeeper and Accountant, and all my office equipment (such that it is) is paid for. Except my cell phone which of course is on a monthly plan. The point here is that a home based business is far more able to weather poor economic conditions than a brick & mortar business because of its low overhead. Overhead is what forces businesses to dip into credit lines when times are slow. I sympathized with them, but was secretly thankful I am where I’m at.