Would this fly today in this Internet age?

[Ankesh]

The idea has merit.
But you are doing it backwards.

1. Find the distribution outlet.
2. Then find the businesses and the advertisers.

As Glenn says: niche. Find the problem from consumer point of view. Not from businesses point of view. A general directory of home businesses will be a very hard thing to pull off.

But what about a booklet on health?
Or for folks who have recently moved to the area?
Or a wedding planner guide?
Or a Personal Finance booklet?

So first find the niche. Then a distribution outlet. Then go and approach businesses in that niche.

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Some time back, I came across someone chasing an idea: creating a network of wedding related businesses and get them to support each other. He approached / was approaching various businesses like wedding dress boutiques, florists, bakers, event managers. And got them to show case a 12 business card holder on their premises. Where they promoted other businesses. And other businesses promoted them.

A similar thing can be done with booklets too. Get the businesses themselves to distribute the booklet / directory.