By Terri Lonier
SOHO, the small office/home office market of companies with 20 employees or less, is changing the landscape of small business. A mere blip on the economic and social horizons a decade ago, SOHO has now become a super-nova flash of power and influence—and the fastest-growing part of the U.S. economy. There are currently over 40 million SOHO enterprises in the U.S., and more than a million individuals are expected to join the ranks this year.
In preparing for the SOHO Summit, our conference this May for business leaders and companies offering SOHO products and services, we've been reviewing the many contemporary factors creating this movement. Whether you're a business serving SOHO or are an independent worker, look to these trends as the economic and social tea leaves of your future.
Technology Fuels the Engine of Change
Technology is driving the transition from boardroom to basement. Prices continue to drop as capabilities soar. Today, a $2,000 investment enables small companies to not only look big, but also allows them to compete effectively with firms many times their size.
SOHO workers are turning to the Internet to stay in touch with customers, establish brand identity for their companies and communicate with fellow freelance workers to build virtual teams. A growing number of traditional corporations are waking up to the SOHO market, and offering business services to this booming online audience. These include services such as back office support, payroll and order processing. Other corporations are creating online divisions of their brick-and-mortar establishments, serving SOHO with books, office supplies and other physical goods shipped directly to the SOHO doorstep.
Madame President and Mr. Mom
The search for flexibility and better quality of life is leading to some new, less-traditional roles in the work force. Men are starting businesses for many of the same reasons women are—to spend more time with their families, to enjoy increased flexibility and to share childcare responsibilities. In addition, women are finding that when you're a SOHO CEO, there's no glass ceiling to limit your growth.
The rise of two-income households is also contributing to the surge in SOHO ventures. With the psychological and financial stability of a working spouse, more individuals feel comfortable taking the risk of business start-up. In an era of low employment, a strong fallback position remains if the adventure fails—find another job.
Offices with Invisible Walls
New digital infrastructures enable individuals to stay in touch with the office and each other from anywhere. Portability of business tools and equipment has increased as costs have plunged, and many cars and bedrooms are now better outfitted than offices of just a few years ago. Cellular phones, palm-sized computer peripherals, high-speed phone and cable modem lines and video teleconferencing all make instantaneous communication a reality. The office no longer depends on a physical location; it resides wherever the intellectual capital walks, talks and breathes.
Large companies are adopting SOHO's pioneering mobility. Instead of a workstation with a desk, employees receive a portable filing module and a cell phone. The result is better project team interaction, flexibility and creativity.
As these trends illustrate, SOHO workers are influencing the new world of work—both in driving the creation of new products and services, as well as showing larger firms the benefits of flexibility and nimbleness. The momentum of millions of new SOHO business start-ups is creating a powerful economic engine and driving the next generation of American business. The American workplace will never be the same.
Terri Lonier is President of Working Solo, Inc., a strategic consultancy that helps Fortune 500 and high-tech firms reach the SOHO market. It is producing the SOHO Summit, an executive forum for business leaders and companies creating products and services for the small office/home office market, May 23-25 in Carlsbad, CA. For details, visit www.sohosummit.com.
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