Entrepreneurs do their homework

Having a good idea or unique offering is an important first step to starting a home-based business, but not everyone has what it takes to operate a business from their home.

While most people long to be independent from the nine-to-five grind, it takes discipline to work alone for long hours and tough nerves to endure stressful slow periods when the economy nosedives. Yet, for those willing to commit the time and patience, the sweet freedom that accompanies a home-based business can make all the challenges worthwhile.

For Julianne Anderson of Boulder-based Anderson Appraisal Services, the decision to launch her own business was based, in part, on her desire to be at home for her two young children. She opened Anderson Appraisal in 1989 following a divorce. Her company primarily handles residential appraisals.

Anderson had as many as six people working with her during the mid-1990s. By the late ?90s, however, she whittled the staff down to herself and another independent appraiser. To retain and gain clients, Anderson operates on a mentality of quality, not quantity, and seeks to complete only one appraisal per day.

In light of this approach, she admits, ?It?s not a 40-hour-a-week job; it (takes) 60 to 80 hours a week. I?m in my office every day.?

Donna Coffey, owner of Impressions Marketing Inc. in Longmont, is no stranger to long hours, averaging as many as 60-hours per week. Ironically, when Coffey launched her promotional marketing firm in 1991, she intended it to only be a part-time business.

She and her husband, Don, moved from Illinois to Colorado 15 years ago to retire. After purchasing $11,000 worth of equipment to start the business, she expected to work three days a week and golf the other days. Within two years, the business became a full-time commitment.
Through Impressions Marketing, companies can select between 600,000 products from 4,300 suppliers to display their logos and promotions.

During the first three years, Coffey attended 16 networking meetings a month to raise awareness of her company. Today, she attributes business growth to referrals.
Unlike many home-based entrepreneurs, Coffey often has clients visit her at her home.
?I say, ?If the garage door is open, we?re ready for business.?? She operates the business from her basement, where she has a 1,000-square-foot showroom and office. The showroom contains more than 300 clothing items, 200 key chains, 500 pens and hundreds of other items.
When the economy tightened, Coffey had to cut back her staff from two people processing orders seven days a week to one person who works three days a week and a high school student who organizes the showroom merchandise on a daily basis.

However, she says the company is already on track to generate more sales this year than previous years. Coffey did not disclose revenue figures.

For Carolyn Tate of Tate Design Group in Lafayette, the primary benefit of working solo has been being in control of her schedule and handpicking projects.

Tate started her graphic design business seven years ago, spending nearly $10,000 to purchase software, a computer and printer. Every year since, she says, she has spent between $2,000 and $5,000 to maintain her office technology. ?I have to stay current,? she explains. ?It?s a cutting-edge business.?

Tate Design Group has grown from servicing individuals to handling sizable projects for large companies, including Wonderland Homes in Lafayette.

A key to managing a sense of balance, Tate says, has been establishing her office in a separate room. Because her business is home-based, she can work any time she wants, which Tate admits can also be detrimental. ?At least when the office is in separate room, you can close the door,? she says. ?Otherwise, (your work) is always in front of you.?

Jack Simpson of Redstone Capital Management Inc., an investment firm in Boulder, says he achieves balance by setting designated office hours. He typically starts work by 6:15 a.m. and finishes up by 3 p.m. or 4 p.m. each day.

Simpson has been an investment broker for 37 years, operating his own business for the last 13. He sells stocks, bonds and commodities to individuals and hedge accounts. Prior to Redstone, Simpson worked at Dean Witter and Prudential.

He spent between $12,000 and $15,000 to purchase equipment and establish his business.
Despite the recent stock market downturn, Simpson says working on his own and dealing with lackluster performance has been no more challenging than it would have been working within a big-name investment firm. Instead, he adds, he has found more benefits to being solo, especially amid industry changes.

Today, more brokerage firms apply pressure to brokers to sell a certain amount or sell in-house products, he says. As an independent, he is able to be more objective with his advice about investment options because he is not affiliated with any specific company. Plus, he doesn?t have any quotas to meet, which he says allows him to be more relaxed in his interactions with clients.

While flexible hours are a bonus for any home-based entrepreneur, Daniel Ahlers of RealSupport LLC in Lafayette also promotes flexible hours as a benefit to clients.

?If someone calls at 8 or 9 p.m. and needs service, I can address it,? he says. ?I work within the customer?s schedule.?

Ahlers established RealSupport five years ago to provide information technology support to businesses with five to 25 employees. He spent approximately $3,000 to register the business, buy insurance and pay for other expenses to launch the company.

RealSupport averages 15 clients at any one time and gains one to two clients per year.

Likewise, Carroll Christman of Brookstone Mortgage in Lafayette uses the fact that she has a home-based business to differentiate herself from her competitors. Instead of asking clients to come to her house, she always travels to locations that are most convenient for them.
Plus, she adds, because she operates from home, her business has little or no overhead, which means her fees are likely to be less than those of larger firms.

Christman has operated Brookstone since 2002. But unlike most home-based business owners, Christman refuses to work 80 hours a week and instead averages between 35 hours to 40 hours per week.
?I want to do great business with great clients. I am not interested in being a mortgage mill,? she says.

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