Home-Based Export Businesses

The home-based business is a business whose economic activity is carried out primarily at the owner's residence. The number of home-based business is growing in numerous countries, including the U.S.A. and Canada, out of economic necessity and convenience. To base a business at home is a practical alternative to renting an office, when renting is not absolutely necessary. It is wise to be practical, especially during tough economic time.

It is true that the size of home-based business is usually small. It is false that home-based businesses are unreliable. Unfortunately, many people still perceive home-based businesses as incompetent.

There are limitations for an export business being home-based. It is usually restricted to export-trading and export consulting firms. It is a fact that only a few foreign importers are interested in home-based exporters. Those who are interested usually have long business or personal ties to the exporters.

In some developing countries, the home-based export-trader (trading firm) needs only an office and a showroom. The manufacturer (vendor) cooperates with the export-trader. The delivery of goods is from the vendor's warehouse directly to the foreign buyer. The vendor provides free warehousing (storage), for example, when there is a shipping delay. Some vendors even allow the free use of their premises for consolidation of container shipment by the export-trader, provided the other goods for consolidation are not from competitors. This cost-saving arrangement will work in developed countries as well, despite their different business practices, if vendors are willing to cooperate.

The vendors' support is essential to the survival of the small export-trading firms, including the small home-based exporters in developed countries.