Home-based businesses build Maricopa economy

If Maricopa seems to have a lot of home-based business, well, it does.

More than 370, in fact.

According to the city’s Economic Development Department, 30 percent of Maricopa’s businesses are run out of a home.

On a national perspective, that is not much. Numbers from the Small Business Administration show 52 percent of small businesses in the United States are home-based. The SBA considers any business with fewer than 500 employees to be “small,” which takes in the vast majority of companies in Maricopa.

Dorothy Wolden, an economic development specialist with the city, said Maricopa keeps an even hand for all new businesses. Whether they are home-based or in a commercial storefront, a business license is $50. And no special restrictions are in place for businesses in residential areas, “as long as no neighbors are complaining,” she said.

“There are a lot of challenges to starting a business,” Wolden said. “We don’t want to be one of them.”

For Amber Owens of Amberlynn’s Sweet Treats, working with the city to get set up for business in her home was a positive experience. “Oh, it was very easy,” she said. “The woman at City Hall was so helpful and answered all my questions. She would call me back within an hour.”[quote_box_right]Questions to Answer Before You Open a Home-Based Business
* What licenses and permits do I need?
* What kind of business structure will I be – sole proprietorship, limited liability company, etc.?
* What are the tax deductions for home office space?
* Will I need to make physical changes to my home or property?
* What are the homeowners’ association restrictions?
* How do I separate home expenses from business expenses?
* Do I need to file a state or federal trademark?
* Will my business be subject to a transaction privilege tax?
* What are my plans for accommodating more employees as my business grows?
* How much money must I make to be a success?
–SBA [/quote_box_right]

For all that, owners of a home-based start-up are encouraged to study the zoning regulations to make sure their type of business does not conflict with the local code regarding noise, dust or parking. Also of vital importance are regulations and restrictions from homeowners’ associations.

Maricopa wants the reputation of encouraging entrepreneurship. While city leaders are actively engaged in finding big employers to move to Maricopa, the current reality is most businesses are service-based.

Many home-based businesses are so-called “mom-and-pop” operations run by a married couple. Landscapers, plumbers, bakers, CPAs, financial advisers, home cleaners, personal consultants, painters and craftsmen all call Maricopa home and call home their office.

According to the SBA, the industries in which businesses are most likely to be home-based are information, construction, and professional, scientific and technical services. Sixty percent of all firms without paid employees are home-based.

Worden said the Maricopa trend is more women than men operating home-based businesses.

She said the top reason new business owners start at home instead of trying a storefront is the low overhead. But that’s just the start.

“They want more flexibility with their families and they’re wanting to create a lifestyle of their own,” Wolden said.

Jaime Hernandez of Hernandez Painting said being home-based puts him in control of his own hours.

“I have time to coach soccer teams when I want,” he said. “And I have more time with the family.”

For some entrepreneurs, a home-based business is a stepping stone to a storefront.

Owens’ long-range goal is a storefront bakery. However, business has built so steadily since she opened in her home three years ago that she is perfectly satisfied for the time being.

Amberlynn’s was a side business to help pay for books while she was studying at Central Arizona College. Keeping it at home relieves her of paying another mortgage and is extra income with her full-time job.

A common theme among home-based business owners is the desire to get out of a corporate mindset, especially to get away from employers running companies in ways that were contrary to their own ideas.

But Wolden cautioned: “There is a difference between someone who just wants to be their own boss and really wanting to be a business owner.”

SBA likes to point out Apple and Ford Motor Company started as home-based businesses. They grew not because one person liked to call the shots but because they wanted to be the best business possible and stay ahead of the competition.

One of the pitfalls of running a business from a home is the likelihood of being isolated from other businesses in the community. The importance of networking and staying keyed into local trends cannot be overvalued.

Just ask the folks at Apple and Ford.

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This story appears in the February issue of InMaricopa.