By Debbie Weil
Aug 96, Number 2
VIRTUAL CORPORATIONS
So whats this about
millions of Americans working out of home
offices? Is there really a new cadre of
entrepreneurial professional padding from
bedroom to office in slippers and sweats,
coffee mug in hand? No commute, no overhead,
no fixed hours - and all made possible by
the tools of computer, fax, modem, copier,
e-mail, voicemail and the newest tech-toy,
a corporate-looking Web site.
Is home office a fancy name for high-tech
freelancing & consulting - a _cover _ for
those whove been down-sized or who
are otherwise unemployed - or is it a new
phenomenon: the virtual corporation?
Ive worked this way for the past several
years and can offer you my own perspective.
But listen to the statistics. Jennifer Doctor,
executive director of
SOHO
America, a Minneapolis-based non-profit
providing resources to the growing Small
Office/Home Office market, says there are
"over 43 million people" working out of
home offices.
She gets her figures from
IDC/LINK,
a New York City market research firm (formerly
called Link Resources), which estimates
the number of home offices will be 43.5
million at the end of 1996 (up from close
to 41 million in 1995).
The "work-at-home universe" continues to
expand for a number of reasons, according
to Robert Straus, an IDC/LINK research analyst
specializing in small business and home
offices. The type of work that is "information
intensive" is increasing, he said. Professionals
can choose occupations which are "independent
of location" and can demand more flexible
time and work place options.
"Five years ago, if you worked out of your
home as a consultant, people said, Oh,
she lost her job," said SOHO Americas
Doctor. "Today they say, Cool, how
can I help you?"
"The previous model has always been to work
for a company, then go out on your own and
do the same or a similar thing," Doctor
added. "Now, people are choosing a more
direct route to entrepreneurship."
In an article on
students
starting companies in the August, 96
issue of
Inc.
Magazine, writer Hal Plotkin notes that
"more students feel they are going to have
to invent their own careers." While "uncertainty"
is one side of the equation driving student
entrepreneurship, writes Plotkin, the other
side "is an abundance of opportunities (in)
technology."
A NEW PHENOMENON
On a more serious note,
policy analysts are giving serious attention
to this new phenomenon. Allow me to digress
(its August; everyones on vacation...
).
"Policy analyst" is a typical Washington
job description. Id never heard it
before moving to D.C. about 15 years ago.
A new friend told me she worked in such
a capacity. I didnt know what she
was talking about, but pretended I did.
Now I know. There are hundreds (thousands?)
of _policy wonks_ toiling for the think
tanks and associations headquartered in
the nations capital. Ive begun
to believe that some of them actually do
productive work, cogitating over the consequences
of the social policies set in motion by
Capitol Hill.
(I told you there was an "inside-the-beltway"
virus. "Do policy wonks do anything? ...
Yes, Virginia." I keep trying to shake it.)
THE
END OF WORK?
One such analyst is Jeremy
Rifkin, president of the Foundation on Economic
Trends in Washington and author of the book,
"The End of Work," subtitled The Decline
of the Global Labor Force and the Dawn of
the Post-Market Era. The paperback, published
by Putnam, is described on the back cover
as an international bestseller. A recent
book-signing at a D.C. bookstore called
Politics & Prose drew a capacity crowd.
In a nutshell, Rifkin says that the Information
Age has arrived and has brought with it
some unintended consequences: Whole job
categories have been eliminated along with
millions of jobs (the "substitution of software
for employees"); "dramatic technological
advances" have not produced trickle-down
technology, which was going to reduce costs,
create new markets and put more people to
work in "better-paying, new high-tech jobs
and industries;" and finally, says Rifkin,
there is a "disturbing relationship" between
permanently displaced workers - the technologically
unemployed - and what he terms "the rising
incidence of crime and violence around the
world."
As a solution, Rifkin argues, intriguingly,
for a a third or volunteer sector of the
economy in which people would give their
time to community projects in exchange for
"shadow wages." That is, the government
would provide a tax deduction for "every
hour of volunteer time given to legally-certified
tax-exempt organizations."
The master of the one-liner, Rikfin says
that, "Redefining the role of the individual
in a society absent of mass formal work
is, perhaps, the seminal issue of the coming
age."
Interviewed at the book signing, Rifkin
sighed when asked if the "work at home"
option might solve some of the problems
he alludes to in his book. "Its a
complex thing," he said. "You do have more
time for your family or your community,
but youre hustling all the time if
youre freelancing. Youve got
to be available all the time... I have no
answer."
He doesnt use the Web or e-mail, he
admitted. "I dont go online. I have
no more time in my life except for my wife
and my dog - when Im not working."
THE VALUE OF TIME
Time - and how it is valued
in todays marketplace - is something
Rifkin lingers over. He quotes other philosopher-economists,
including Japans Yoneji Masuda, who
suggests that "free time" will replace "material
accumulation" as "the critical value and
overriding goal of society."
My own experience of working out of a home
office has been very much defined by time.
Lots of it - and with no clear boundaries.
Just ask my husband, who kept wondering
what I was doing "up there" (on the third
floor) when I went up to my home office
after dinner to browse around on the Web.
Before I brought my surfing addiction under
control (of course, all that exposure helped
me gain a first-hand understanding of the
new medium) I could pass three or four hours
in a trance, clicking from one site to another
into the wee hours of the morning. To me,
it was CandyLand.
JOB
SHIFT?
Another provocative writer
on the subject of the changing workplace
is William Bridges, author of JobShift,
subtitled: How to Prosper in a Workplace
Without Jobs. Bridges is a California executive
development consultant whose clients include
Intel and Apple. He writes about "the demise
of the office" and about the psychological
impact of "dejobbing" - namely, the loss
of identity and along with it a core network
of relationships; the time structure provided
by a job ("without it life can feel... vast
and empty"); and how a job in an office
"is a primary source of meaning and order"
in peoples lives.
HOME OFFICE POINTERS
Luckily for those who work
out of home offices, there are some great
online resources.
Home
Office Computing magazine is one of
my favorites. Theres also
Inc.,
which I mentioned above. A site called Business@Home
is wonderfully subtitled "Making a Life
While Making a Living." If youre an
America Online
subscriber, you can go to keyword: SOHO.
The popular author & consultant team Paul
and Sarah Edwards ("Working From Home" and
"Getting Business to Come to You" published
by Putnam) have a site,
HomeWorks,
which includes audio tips on such subjects
as "Five Top Business-Getting Strategies"
and "Making Money in the Information Business
at Home."
The
Home
Office Association of America has a
site called SoHo Central: Home Office Resources.
(SoHo, if you havent guessed by now,
is not the hip area in lower Manhattan but
an acronym standing for Small Office/Home
Office.)
You can read a useful
article
by syndicated personal technology columnist
Larry Magid. He offers advice on hardware
and software, including computers, copiers,
fax machines, scanners, voicemail systems
and all the techno-gadgets needed to set
up a virtual corporation in your spare bedroom.
Magid is an entertaining writer and has
his own Web site,
Larrys
World, which Ive plugged in an
earlier column.
LATE SUMMER BYTES
Besides green tomatoes
(you really can fry them; try using corn
meal for the batter), here are a few URLs
Ive been meaning to pass along. The
NetMedia 96 conference, held in London in
June, has a site worth perusing. Then theres
something called Strong Opinions On Success,
an eclectic site which includes Electronic
Money Tree Magazine (described as "A Netrepreneurs
Digest.")
FEEDBACK
You can send it to me at:
debbie@wordbiz.com.
Seeya