The New Economy

The New Economy
And Why Home-Based Entrepreneurs Should Be Excited About It

Finding stability in the midst of chaos
100 years ago—even 60 years ago—many, many more people than now lived and worked in the same neighborhoods, growing much of their own food, buying whatever else they needed from neighborhood businesses, and were, for the most part, more self sufficient. They knew their food was fresh and which of the locally-made products were of good quality. Now I am not going down a ridiculous nostalgia road, here. Things in “the good old days” were not all good, and we need only look at the Great Depression, the Dutch Tulip Bubble, the Dust Bowl, and other crises to know that destabilizing conditions have occurred and created havoc from time to time; but the current economic crisis and crumbling of the financial system in the United States and throughout the world has created a trend towards more small-scale, simple, controllable, and local operations that, combined with technological advances that allow us to work from home, could be creating the most monumental opportunity for home-based business entrepreneurs ever to occur. The most recent issue of Yes! Magazine (subtitled, “Building a Just and Sustainable World”) has devoted most of its Summer 2009 issue to their vision for a New Economy, and it has all kinds of implications for those of us who work from home. Order a copy now from http://www.yesmagazine.org or call them at 206-842-0216. For subscriptions, call Toll-Free: 1-800-937-4451—and no, I’m not on their payroll ;-) .
Also don’t miss our own IAHBE writer Yank Elliott’s pieces recently on opportunity in the midst of chaos and his new article on business funding from micro-lenders. This is right in synch with trends in this New Economy. As Yes! Magazine’s Executive Editor Sarah van Gelder describes the New Economy, it is “built on new forms of money, and on democratic finance and business.” People are learning that they can live without Wall Street and create a more manageable and more stable way to finance and run their businesses with local and cooperative sources. Yank has been preaching this in several of his articles, and it’s true – your local banks, your local credit unions and other local organizations may be just what you need, because most of them never forgot that they must serve rather than take advantage of their customers. I serve on the board of a local community bank, and I know that we never made a subprime loan or participated on a mega-deal. We’ve been accused of being too conservative, but we know that we’re not helping a client by making them a loan they can’t afford. Our customers know, too, that we’ll work with them every step of the way and go to bat for them as long as they’re trying. When we get out of these tough times, they won’t forget that our bank stuck by them when the going was really bad.
Less is More
Other themes emerging in the New Economy that harken back to more old-fashioned habits are cutting back, doing with less, and getting rid of wasteful consumption in many aspects of our lives. We allowed ourselves to mindlessly ratchet up our standards of living just because we could, and it has fueled an unsustainable economy which has come crashing down around us. The silver lining is that we CAN be more self-sufficient and we CAN be happier with less—much less. And guess what…these habits of thrift and lower consumption are also good for our most precious possession, Mother Earth. As President Obama’s stimulus package goes into effect, new jobs are being created to build more earth-friendly city infrastructures, weatherize homes, increase the use of renewable energy, build public transit systems, and many other projects that have been delayed for far too long. These are being done with overriding goals in mind: to improve health, happiness, and environmental quality.
What Should Home Business Entrepreneurs Do to Take Advantage of the New Economy?
Look for service opportunities to help people adapt. Perhaps you can create info-products that help people find their own opportunities in the New Economy or help them find how to take advantage of Stimulus Package monies or other funding sources that are becoming available.
Stay on top of new jobs being funded and new businesses that need subcontracted services as they crank up their own economic engines based on money flowing in from the stimulus package.
As larger businesses downsize, look for needs they may have in your area of expertise which they may be willing to outsource to you.
Look critically at your local community and try to identify gaps that need filling to be a more self-sufficient community. Is there something important that people have to drive to a big city to buy or get? That gap may be the key to a business opportunity if you can fill that need.
If you have land or a building with additional space, consider a business that creates a platform or venue for cooperative efforts of others and allows them to showcase their wares, crafts, or products: e.g., a farmer’s market, a craft store, an art gallery. By working together, you can provide them with an opportunity and provide yourself with an income stream.
Consider multiple usage of any facilities you own to help someone else and increase your own income stream. Can a congregation without a church building use your warehouse on Sunday? Do you have specialized equipment (a color copier or a copier or scanner that can handle larger-sized documents) that other home-based business owners can lease from time to time?
Donate used equipment and furniture to local nonprofits or thrift store and get a tax deduction. Don’t throw anything away if someone else can use.
The New Economy Resource Guide
If you’re interested in learning more, Yes! Magazine has compiled this large list of resources, tools, and books they used in researching their articles. It includes links to research and policy organizations that can offer further insights, suggestions, and tips.
Learn all you can about changes that are occurring. Get to know other home-based and small business owners and patronize them or refer customers to them whenever possible, especially those who are also community supporters and responsible citizens. Help organize cooperative efforts that benefit everyone. Be a positive-thinking leader in this time of uncertainty and trouble. Help as many people as you can in your community to understand and benefit from the changes, and you will be seen as someone who can be relied on and trusted. This will help you build your own brand and business and serve you well far into the future.
Home business entrepreneurs have long known the quality-of-life advantages of working from home. An economic tsunami has forced the rest of the world to look again at some things we’ve known all along. Welcome them with open arms and perhaps you’ll create yet another business niche for yourself at the same time.