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Cottage businesses still blooming in local economy
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| By: Anita Zimmerman |
October 07, 2009 |
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Scott Ebbert, of Prairie Lake, holds a bag for a shopper Sept. 17. Ebbert’s vegetable stand near Chetek Express is one of his several home-based business ventures; he also does yard work, sells firewood and guides fishing tours.
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What functions as an office, business headquarters and artist's studio?
Home, of course.
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Gardeners, farmers, mechanics, caterers, groomers, truckers, independent sellers, creatives (crafters, writers, photographers, woodworkers, graphic designers, painters, etc.) and home officer workers, plus many others, enjoy the benefits of self- or home-based employment.
Andrew Dane, Barron County's UW-Extension community development specialist, says home businesses impact the local economy "very significantly."
"Almost 3,500 nonemployers or home-based businesses are located in Barron County ... they contribute $125 million in terms of receipts according to 2007 data from the U.S. Census, so they bring a lot of income into the county," Dane comments.
At the national level, nearly 1 million nonemployer businesses were created between 2006 and 2007.
Industries they represent are diverse, Dane says.
As an independent seller of Mary Kay Cosmetics for 20 years, Betty Semerad has climbed the ranks. She's been a consultant, senior consultant, team leader and team manager. She's driven company vehicles for free for 10 years; Mary Kay covers 85 percent of her car insurance costs.
Semerad, of Cameron, is currently an independent senior sales director. She easily identifies one perk of her job: it's recession-proof.
"There are three things that never go down when we have a recession ... and they are, theater and movies, alcohol and tobacco and cosmetics," she says. "These three things help you to feel good when life doesn't look so rosy."
Some home-based businesses happen purely by accident, as Scott Ebbert, a self-employed Prairie Lake man, learned.
"I ran a moving company in Madison for 30 years," he says. "I moved up here to take care of my folks, but I couldn't find a job."
Instead of moving or commuting, Ebbert chose to diversify. Now he offers fruit and vegetables at a roadside stand, does yard work, serves as a fishing guide and sells firewood.
"I'm a jack-of-all-trades, master of none," he laughs.
Another example is the Stardust Drive In Theater in Chetek. Owners Paul and Marlys Jabener wanted to start a business-something interesting, Paul adds-at their home.
The drive-in, which opened in 2008, supplied a needed service for the area. It's been entertaining for the Jabeners, too.
"I like all the kids. I like to see people having fun with their families," Paul says.
Interest in home businesses is building, adds Dane.
"I do meet a lot of people working from home, and I think it's a trend that will continue as businesses look to lower their overhead and streamline operations," he says.
A 2006 study found home-based self-employers tend to have larger profit margins than non-home businesses, attributed to fewer overhead expenses. On average, the at-home profit margin was 36 percent.
Older and middle-age workers were more likely to work from home, and they were less likely to put in long hours.
One in four owners made all their income through a home-based business.
"Craftpersons and artists in Northwest Wisconsin," a 2006 report released by the UW-Extension, includes similar findings on creatives in the 11-county area.
Working from home also serves as a launchpad for entrepreneurs with new businesses, Dane points out.
"I think for many successful companies that you see out there they often times did start as backyard operations or garage operations."
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©The Chetek Alert 2010
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