Building A Strong Future_Erin Casey

It’s easy for Debra Cohen to remember when she started her business; she marks time by her oldest daughter’s birthday. Cohen launched Home Remedies of NY, her home-based home-remodeling referral business 13 years ago, when her oldest daughter was 6 months old. A need to earn extra cash for her family combined with boredom that set in when she transitioned from full-time employee to stay-at-home mom made starting a business somewhat of a necessity. But determining exactly what type of business—and what business model to use—was a process.

Prior to becoming a stay-at-home mom, Cohen enjoyed a busy career as a vice president of a Spanish-language aviation magazine. She traveled internationally and thrived in a fast-paced culture. But when her first child was born, the thrill she once found in her career was replaced by the nagging feeling that she was simply missing too much of her daughter’s life. “I remember, I came home one evening and she was in an outfit I hadn’t seen before; I didn’t know what she’d eaten that day,” Cohen says. “That was my ‘aha’ moment.”

She veered of the career track to become a full-time mommy. But there were tradeoffs. Her family had to tighten their financial belt as they transitioned from living on two incomes to getting by on her husband’s teaching salary. And though staying home with her precious daughter was rewarding, it was far less mentally stimulating than her previous career. It wasn’t long before she realized doing something to earn some extra money would be good for her family and her.

Keeping Her Priorities Clear

Cohen quickly ruled out getting a part-time job. “I wanted something that would pay me well, and I didn’t want to work on weekends,” she says. The whole point of quitting her job was to enjoy time with her family, so being away from her husband and daughter on evenings and weekends wasn’t an option. She also discovered that most part-time jobs barely paid enough to cover day care expenses. Starting a business seemed like the best option.

The idea for Home Remedies grew out of her passion for decorating and home remodeling and her natural tendency to network. Having recently completed a remodeling project, she knew how difficult it could be to find capable and responsive contractors. “Every time I found someone who was good at their job, I wanted to tell others about them,” Cohen says. She began asking the contractors she’d worked with if they would be willing to pay her a commission if she could bring them business. Eventually, the concept morphed into a referral business that would connect homeowners with reliable and expert service providers, and Home Remedies of NY was born.

Getting Started

Like any startup, Cohen had her share of hurdles to overcome. “We were way tight on cash,” she says. To fund her venture, she took out a $5,000 loan against her husband’s retirement account. With that, she purchased a refurbished computer and fax machine and paid for various materials and printing needs. She stretched her money further by working with retired professionals or other stay-at-home moms to create everything from legal and business plans to her logo and letterhead.

Money wasn’t the only obstacle. Her knowledge of construction was limited, at best. To be sure she was offering a quality service to the public, she developed an informal team of experts to tap into. These were friends or business acquaintances she called with questions and, of course, sent referrals to in trade. Cohen says this type of networking is essential for entrepreneurs, particularly for those working from home. “You can’t possibly be an expert in everything. Surround yourself with people who have expertise in different areas,” she says. “This is especially important if you’re working at home alone; it’s so much different than working in an office, and sometimes you need that outside input.”

Increasing Opportunity and Profits

Cohen started her business by working with clients and contractors in her local area. Before long, she began receiving requests from businesses in neighboring cities who wanted to become part of her referral network. She also received inquiries from individuals who wanted to start a network of their own. Because she wanted to maintain a 20- to 30-hour workweek, Cohen felt she was unable take on too many areas beyond her own.

In response to those who wanted to start their own networks, she initially considered turning her business model into a franchise. “But that was costly and cost prohibitive to people who wanted to start a home-based business,” she says. As an alternative, she created a “business in a box.” The kit includes a variety of materials, forms and information. “It’s a turnkey business that saves people at least a year on the learning curve,” Cohen says. In contrast to the franchise model, those who purchase the kit are free to do what they want with the information. Some, she says, choose to follow her business model to the letter. Others put their own twist on their businesses, such as creating a green referral network or one that networks contractors who are also firefighters. “They’re not limited to doing things the way I do it,” Cohen says, which offers a lot of freedom.

The downside for Cohen, is that while her “business in a box” brings additional income into her business, unlike a franchise, it’s a one-time sale. As she considers ways to expand her business, she says she’ll review options that offer a source of residual income.

Most weeks, Cohen averages 20 to 30 hours working on her business. She puts in time before her daughters, now 13 and 10, wake up, and returns to her home office while they’re in school. Her business provides a significant income for her family—far more than she ever intended. “My goal was always to make enough money to stay home and to be able to put some away for emergencies.” Having surpassed that, Cohen enjoys a career and a life that are custom-built.

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Reference :

- http://www.sfwmag.com/career/building-a-strong-future/