Division of Agricultural Sciences and Natural Resources / Oklahoma State University

A helping hand to home-based business

By Trisha Gedon

They may not be written up on the business pages of the newspaper very often, but they are a force with which to be reckoned. Who are they? They are the home-based and micro-business owners across the state.

There are more than 17 million small businesses in the United States. Of those, nearly half are home-based.

In Oklahoma, it is estimated the home-based and micro-business owners are 175,000 strong. What’s even more impressive is that they have an estimated $3 billion economic impact each year on the state. And the industry continues to grow.

Glenn Muske, Oklahoma State University Cooperative Extension home-based and micro-business specialist, says the OSU Central Office for Home-Based Entrepreneurship and the Oklahoma Home-Based Business Association (OHBBA) have provided information and guided about 22,000 businesses on the road to success.
“People face a wide variety of challenges when they decide to go to work for themselves and operate a home-based business,” Muske says. “That’s where OSU comes in. We can provide them with information on topics ranging from zoning and taxes to developing a marketing plan, packaging and shipping and other legal issues.
“Our goal is to provide education and outreach programs for individuals who already are in business as well as to those who are still considering a home-based business.”

Betty Carrington-Griffin started her business marketing African fabrics. She designs clothing and wall hangings in a home-based business called Betty Griffin Designer Artist.

Linda Lou Alexander of Finley, Oklahoma, has been a member of the OHBBA for five years and has served on the board of directors.

“I’ve been in business all my life and knew the ins and outs,” says the owner of Handwoven Baskets by Linda Lou. “But OSU has been such a valuable help to me. I can ask any question pertaining to my business and get the answer.”

Alexander says OSU, along with the OHBBA, is there for encouragement, as well as for answers.

Being in a home-based business can raise a lot of questions and anxieties, “but they make us feel like we’re not out there by ourselves,” she says.

Betty Carrington-Griffin of Oklahoma City, says she discovered the help OSU and the OHBBA provided after she had established her business.
Economic development highlights in this story:
• Home-based businesses have a $3 billion annual impact on Oklahoma.
• OHBBA has helped 22,000 Oklahoma businesses to date.
• Eighty percent of OHBBA-aided businesses are still going after four years.
“I just fumbled around on my own when I got my business started,” Griffin says. “When I found out about OSU, I started attending the OHBBA seminars and learned more about negotiations and dealing with people.”
Griffin says she wishes she had known about what OSU had to offer when she was starting her business.
“What OSU has to offer is very good for people who are starting out. People have a chance to network with others through OHBBA.”
She teaches seminars at Francis Tuttle Vo-Tech at Oklahoma City and, “I always tell them about OSU and the OHBBA, and how the two work together. It’s the first thing out of my mouth.”

Griffin started her business marketing African fabrics. She has since streamlined her business, called Betty Griffin Designer Artist, and designs clothing and wall hangings using African fabrics.

Muske says while many Oklahomans operate a home-based business as a source of secondary income, there are increasing numbers who use the business as the primary source of money.

“Downsizing of companies puts more and more people at home all the time,” Muske says. “People who decided they want to be their own boss also account for more of the businesses operating as the primary source of income.”

The average income for a home-based business in this state is $18,000.

“We’ve got a mixture of businesses, some making $30,000 to $40,000 or more per year and others who make $4,000 to $5,000,” Muske says. “About half of the home-based business owners in Oklahoma use it as a source of secondary income.

"But OSU has been such a valuable help to
me. I can ask any question pertaining to
my business and get the answer.
-- Betty Carrington-Griffin

“They need additional income to get them over a hump or to keep them solvent. That’s why many people turn to a home-based business. However, the numbers of those who operate a home-based business as their main income source continue to grow.”

Muske says farm families and others may use a home-based business to provide a balance in income. A home-based business also may provide more stability to a worker who is paid on a commission-only basis. For individuals and families who have a fluctuating cash flow, money from a home-based business may be what it takes to survive.

“Advancement in technology is another factor that allows many more people to work at home. We’ve been seeing a trend in companies setting up offices in employee’s homes, but we’re also seeing a big trend in computer technology lending itself to individuals running businesses from home,” Muske says.

Sharon, Chuck, and Lee Henry, turned their 40-acre farm into a home-based business by marketing value-added products. In addition to the asparagus they grow and pickle, they now sell cookbooks, flavored mustards, chili gravy, salad dressing, packaged nuts, and stuffed olives.

On a national average, 35 percent of households are involved in some type of home-based business. Half of these workers actually are employed by other companies, but work out of their own home.
Over the years, the trend of a home-based business has shifted from a product-oriented business to a service-oriented one.
In the late 1980s, approximately 60 percent of home-based businesses focused on a product. Today, about 60 percent lean toward a service.
“These services can range from lawn care and house cleaning to word processing, VCR repair, and web page development,” Muske says. “Some people may do their actual work somewhere else, but all of their bookkeeping and office management duties are done at home.”

Another factor that opens the door for more home-based business opportunities is people willing to pay for things they wouldn’t have years ago. Lifestyles have changed, and people are wanting to spend more time with their families or on themselves.

A person who doesn’t have time to work out at the gym may hire a personal trainer to come into his or her home. Instead of taking time off from work, parents are hiring a “kids taxi service” to get their children to doctor’s appointments, ball practice, or music lessons.

“Businesses that go gung ho are the ones that meet an unfulfilled niche in society,” Muske says. “Dun and Bradstreet surveys show that 60 percent of businesses fail in their first five years. Our surveys show that 80 percent of the businesses helped by OHBBA are still going after four years.”

Individuals who already are in business, or those who are still in the thinking stage, are encouraged to contact the Central Office for Home-Based Entrepreneurship for guidance at 405-744-5776.

“We’re here to help in any way we can,” Muske says. “If you’ve got a question, we’ve got the answer or we can point you to the people who do.”

Agriculture at OSU Spring / Summer 1998
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