Is now the time to start a home-based business? Based on the latest economic data, the answer to that question is probably a resounding “YES”. And here’s why.
It’s almost a certainty that a new recession is upon us. That is, if you think we ever really got out of the last one. GDP is an anemic 1.4% but there are many more easily understood statistics that are pointing to a significant economic downturn in the immediate future. And downturns mean job loss. While low paying opportunities in food services and bar tending still seem to be available, these are hardly jobs that can support an individual, much less a family. Consider the following plight of young Americans from a recent Pew Research Center study:
- For the first time in 130 years, more adults (age 18-34) are likely to be living with their parents than with a spouse or partner in their own household.
- Median wages for young men rose steadily from 1940 ($6,600) to 1970 ($27,300). Wages for young men age 18-34 is currently just $15,000.
- Young men are much more likely to be living with mom and dad (35%) than to be living with a spouse or partner in their own household (28%).
What is a glaring statistic gleaned from the recent Pew Research study is, of course, the decline in men’s wages since 1970. Good paying jobs, those that used to be available in the manufacturing sector continue to disappear at an alarming rate. And it shows no sign of getting any better. In fact, it’s likely getting worse and worse quickly. One of the biggest fears of young adults is being stuck in a Dead End Crap Job With Crap Wages. And it is real fear that represents a clear and present danger.
TRENDS: LOOKING INTO THE CRYSTAL BALL
For any mobile creative who reads stories like the two listed above, it is easy to quickly pick out the culprit. It is the word “JOBS”. No where do you see complaints from entrepreneurs who have successfully taken control of their lives and started their own businesses. The problem exists for those that have settled into or been forced to settle for a life of low paying JOBS with miserable wages due to a variety of circumstances. But things are changing! And many that have found comfort (as meager as it is) in a low-skilled job, low pay job may be forced into entrepreneurism and starting a second-business from home. Here’s why.
- ROBOTS: They’re everywhere, and will be taking the place of everything from fast food workers to truck drivers. Most jobs simple aren’t secure. According to a study by Pricewaterhouse Coopers, 45% of today’s work activities can be automated with robots replacing workers. And about 58% of business CEOs intend to do just that.
- HOUSING: Rises in rents and the costs of housing are one of the main drivers of “misery” for everyday Americans. Rents continue to rise dramatically nationwide. Home prices are nearly as high as before the great recession…even higher in some markets.
- JOB COMPETITION: Though improved, competition for what might be called a “good” job is still intense. Those with college degrees are routinely applying for mundane, unskilled / low skilled positions.
- RECESSION: Recessions and economic downturns tend to visit us about every 7 years. We are now enjoying the 10th year since the historic “Great Recession”, which was battled using hastily created policies from the Fed. The Fed “toolbox” is now empty. So, the next recessions, now overdue, will likely be one very difficult to manage through monetary policy.
So is now the time to start a home-based business and plan for the future? You bet…and the sooner the better. Time is running short and home businesses do not become profitable overnight. The home business you start today, however, can prove to be a valuable safety net in the years to come if job and economic trends continue to deteriorate. The time to become exploring opportunities is NOW!