Today, I was having lunch with a friend of mine who happens to be an architect. We were discussing everyone’s favorite topic: the economy. I like discussing this issue with him, because of all the people I know, he has the best actual pulse on the economy. Architectural projects are very scarce during a recession. But he tells me he has a lot of new projects starting after the New Year. And in his opinion, this shows a blip of improvement on the economic horizon.
He also tells me that now he has less competition than he did a few years ago because so many of his larger competitors went out of business. He attributes this to the fact that he works out of his home and has been avoiding expanding his business into office space. Like me, his business was negatively affected by the economy over the past two years. However, due to the low overhead of a home based business, they are simply easier to ride through a recession.
It’s not that home based businesses are immune to the negative aspects of the economy. But since there are fewer monthly expenses with a home business, they can tighten the belt and survive much easier. So yes, home based business are affected by the economy but not completely enslaved to its ups and downs.