AKAMAI MONEY
Home-based workers can find many opportunities in Hawai'i

By Deborah Adamson
Advertiser Staff Writer

Q: What are the best types of home businesses to start for someone with a computer? I'm on disability and I want to earn more money working five to 10 hours a week. I thought about making some money stuffing envelopes, but someone told me that it's not a good idea. I can get around physically and I have a car. — Debora Broniola, Pearl City.

A: There are many ways to start your own business at home, especially if you have a computer and know how to access the Internet. But let's start with what you should avoid — stuffing envelopes.

According to the U.S. Federal Trade Commission, this is how the envelope-stuffing "scheme" works: promoters advertise that for a small fee, they'll tell you how to make money stuffing envelopes. You think that a company will pay you money to stuff envelopes.

Instead, you'll likely get a letter telling you to place the same envelope-stuffing ad in a publication, federal regulators said. The only way you'll make money is by people responding to your ad.

Other misleading schemes include medical billing and getting paid for assembly or craft work at home, the FTC said.

So when you see ads touting employment opportunities that sound suspiciously easy or lucrative, be wary.

As for what business you can start yourself, Hawai'i presents many opportunities especially since it's a top travel destination. You not only can cater to locals but the millions of tourists who flock to our shores or shop for Hawaiiana online.

"The 'Made in Hawai'i' branding allows you to collect a premium on your product," said Milton Kwock, business development program manager for the Hawai'i Department of Business, Economic Development and Tourism.

For people starting out, the easiest way to sell online is through auction sites such as eBay, Kwock said. To capitalize on Hawai'i's mystique, consider selling Hawai'i-related items such as quilts, ribbon leis or goods made out of koa wood.

You could also set up a table at a local farmer's market or the swap meet.

"It's a very inexpensive way to test market," Kwock said.

Dan Belmont, owner of Hawaiian Fudge Sauce in Kapolei, sells his premium Hawaiian chocolate fudge for $15 for an 8-ounce jar. He decided to market the fudge after hearing people say, "Hey, you should bottle that stuff." Since its launch in November 2003, his business has expanded to include major clients such as Hilo Hattie. He also sells his products through his own Web site.

"Anything that has to do with tourism here in Hawai'i — it's such a huge opportunity," Belmont said.

To get ideas on what products to sell, one way is to list your areas of interest, said Paul Edwards, co-author of Home-Based Businesses for Dummies, based in California. If you love aromatic soaps, sell handmade ones infused with the essence of Hawai'i's tropical flowers. Handy with crafts? Consider selling beaded necklaces, bracelets or cell-phone straps.

It's better if you can offer a unique product. For instance, if you want to sell lei, consider customizing them for clients, he said. Lei can incorporate the signature colors of a school or company, the favorite flowers of a client, or match a wedding's theme.

If you're short on cash, consider setting up a service business since it usually requires less up-front cash, Kwock said. Don't count on the government for grants; most of the help comes in the form of loans.

Right now in Hawai'i, "the fastest growing microbusiness is in the area of cleaning and maintenance," Kwock said. That includes yard-cleaning, house-cleaning and auto detailing.

If cleaning is not to your liking, consider providing child- care, house-sitting or pet-sitting services. If you're a sociable person, one option to consider is the event-planning business. Organize parties, weddings and baby lu'aus for a fee, Edwards said.

For help in starting a business, there are guidelines and an online course at www.sba.gov/starting_business/index.html. The state's Business Action Center can help you set up your business properly. For more information, call 586-2545.

Got a personal finance or consumer question? Contact Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.