The SOHO as an Online Business Model for the Small Business Entrepreneur of the Future

Sometimes to understand the future we have toconsultants, independent contractors, or organized
have some historical perspective.as small business entities with very specialized
We often forgot that before the 19th century,services designed for the project outsourcing of
and prior to the industrial revolution, nearly alllarger companies, often not even industry or
offices were small offices and/or home offices,country specific.
with very few exceptions. Now that smallThe SOHO or online virtual office is not just for
business and the self-employed represent theconsultants and independent contractors any
backbone of the current economy, it seems thatlonger. The members of many other occupational
history does indeed repeat itself.ranks, and especially online business owners now
The US economy no longer is dominated by gianthelp comprise this diverse sector.
corporations. The US Small BusinessA large array of products and services also are
Administration (SBA) reports that fully 99% of alldesigned specifically for the "SOHO" market. Many
independent enterprises employ fewer than 500books are published specifically targeted to this
people. This accounts for 52% of the USbusiness model, everything from general business
workforce according to the SBA.advice to guides on setting up fairly sophisticated
Additionally by the end of 1999, the servicecomputer systems, telecom systems, and
sector had grown to 104.3 million jobs,Internet and Intranet systems.
representing 81% of non-farm employment, andThe small business entrepreneur generally has
the goods-producing sector, which includesdemanded and usually has always benefited from
manufacturing, construction, and mininghigh technology, allowing small business to be
represented 25.2 million jobs, or only 19% ofcompetitive.
non-farm employment.So, if you do not own a farm, chances are that in
I do not know how many farm related jobs therethe future you will be working in the service
are, but I do know that 81% and 19% add up tosector and quite possibly from your home office.
100%.This probably holds true in most other developed
This tells me that since at least the year 2000countries as well, due to an increasingly
probably over 80% of jobs are now serviceunderemployed labor force and shrinking job
related and less than 20% of us are nowmarkets.
employed in manufacturing. That means as aThe online virtual office is here to stay and is for
nation we do not really manufacture much anyanyone that seldom needs an office. If you own a
more. Can you say trade deficit?laptop with wireless connectivity you may be
We no longer have an industrial economy, just likelucky enough to work pretty much anywhere, if
we will never again have an economy based onyou have access to the Internet.
agriculture.But let's take it one step further for those who
The advent of the personal computer in the midwould dream of living where they wish, and
1990s, along with breakthroughs in voice and dataworking online from wherever they are. Work is
communication, created opportunities forno longer necessarily site specific.
businesses to decentralize and allowed for aIs it really just a dream? Not any more.
return to the trend of the small office concept.More and more people are finding that with
Since the end of the 20th century the termincreasingly more affordable technology, VoIP
"SOHO", an acronym for "Small Office/Homeservices, videoconferencing, and reliable worldwide
Office" has come to be used to define thiscourier services, they at one time or another
important business niche.may find themselves working from a beach, or a
New technologies will continue to create a demandmountain top...and in some cases may rarely have
for individuals who work from home or in a virtualto make an appearance at the traditional office
office. Many people are now employed asagain.