Mutually Beneficial Home Business Networks

The industrial model of the big corporation, factory, etc. base their success on two basic elements

1. The division of labor that allows individuals to specialize in areas of their strength and
2. Economies of scale that allow overhead costs to be minimized

For that reason, except in very small “niche markets” home production is overwhelmed by large businesses.

I’m not trying to make home businesses compete with big corporations, but it would be good if home businesses could network together in certain ways to boost their profits.

That’s why I wanted to point you to this free download: Case Studies in Worker Owned Businesses from MIT

Here’s what I’m talking about:

Let’s say that in the same vicinity a  number of people make home made craft items to sell on Etsy.com or sell products even via Ebay.com.

What do they all eventually need to do if they are making money?

1. Upload descriptions and photos

2. Package and ship products. 

3. Order supplies

What if somehow a cooperative between this cluster of businesses that could help them become more efficient and save money in these aspects of the work that were the least fun and profitable?

Could they buy supplies as a group? Could they buy packaging material as a group? Could they own a cooperative business that would do these tasks for them and allow them to save money on this aspect of their work?

It could be worth exploring.