This guide was developed to provide information, stimulus, and ideas for facilitation of homebased business development for older adults. The guide is organized in four chapters. Chapter 1 examines the physical and intellectual factors affecting older workers and employment barriers facing older adults. In Chapter 2, "cottage industry" is defined and recent trends, as well as historical roots, are examined. Chapter 3 provides guidelines, overviews of studies on entrepreneurship, and actual exercises to assist the planner in counseling clients about a homebased business. The final chapter is a springboard of ideas that planners can use in facilitating cottage industry development at their own institutions. Four supplements to the guidebook provide the following information: (1) class outlines for a class or workshop series on homebased businesses; (2) profiles of 10 types of cottage industries an older person can begin; (3) a study of an elder craft workers' shop's start-up and success; and (4) other resources, such as books, journals, and magazine articles on homebased businesses. (KC)