A Small Office/Home Office (SOHO) is defined as a small business mostly operational within small office spaces, virtually or from homes. Such businesses are typically considered micro-enterprises.
The acronym SOHO differentiates small businesses from large or mid-size businesses. Most are home-based businesses, as indicated in the acronym. As per this concept, you can work from where you stay, with adequate space for your business, too.
Owners of SOHOs are usually self-employed. They do not require big office spaces to conduct their daily operations. Most use small spaces for their offices or run their business from home. Hence, SOHOs in Mohali typically employ less than ten persons.
SOHOs have seen significant growth in the last decade. This business model permits efficient use of money and time. Most are humble one-person operations conducted within the home, while others are small office set-ups having less than ten employees. But, the physical size of the business does not count when judging success.
Key facts
- A SOHO is a small business
- SOHOs are typically run virtually, from homes or tiny office spaces
- Owners of SOHO businesses are typically self-employed individuals. They may hire less than ten people.
- SOHOs help reduce or cut costs linked to expenses such as utilities, office equipment, leases and rents.
- Half of US firms are home-based, and the majority of the workforce telecommutes daily.
Less is more
The path to success in the modern economy is streamlining the business. Technology has advanced to a level that makes people more efficient and mobile than ever. Smartphones provide solutions for SOHOs for most needs like communication, analytics, storage, etc.
No longer is it necessary to have multiple departments in huge office spaces to run businesses efficiently. Having more payroll employees might bog down workflow with unforeseen variables and red tape.
As for the SOHO strategy, it has empowered professionals to enter the market with their own small businesses. The progress of SOHO businesses is not just out of necessity but because they are actually beneficial for amateurs and professionals.
How do they work?
As explained above, a SOHO is a kind of micro-enterprise. Such a business is commonly run by self-employed individuals who use a small corpus of capital for beginning and running their daily operations. This may be either their funds or borrowed from lenders.
Most SOHO businesses offer specialized services or goods to persons in their locality. Hence, these are run by mostly white-collar professionals such as financial advisors, bookkeepers, accountants, lawyers and entrepreneurs. All these do not require a formal office for meeting clients or may have a formal, dedicated office based in their home (home office).
Such businesses employ very few personnel, say less than ten. In the era of the knowledge economy, a rising number of such kinds of businesses operate now from virtual offices. They may not have physical premises or use coworking arrangements wherein many self-run businesses share office space and services like meeting rooms, phone answering, food courts, video-conferencing and parking.
By sharing office space with others or running their business from home, SOHO owners can save on substantial costs like overhead expenses linked to running business operations.
Benefits of SOHO
- Reduction in commuting
Bid goodbye to long drives and getting stuck in bumper-to-bumper traffic. Owning a SOHO implies that there is no need to step outside the home to reach the workplace. Boost productive hours by lowering the number of hours and the stress linked to commuting.
- More time with family
Most modern professionals face the challenge of work-life balance. By operating out of a SOHO, you can avoid such hassles and easily pop into your home whenever your family needs you. Now that most SOHOs also provide recreational facilities, you can enjoy all the family action within 24 hours.
- Less stress and reduced distractions
As per studies, working in cubicle-based offices causes much stress and damage to one’s health. Workspaces that do not permit you to take meaningful breaks or avenues to relax will result in burnout. Avoid such issues by setting up a SOHO. The opportunity in a home office to relax, rejuvenate and even take a quick nap is invaluable.
- Comfort
Those who work from home often radiate an unusual vibe of calm. Mental well-being is maximum when you can opt for hours of work, breaks and holidays. Even if you don’t want to work, a SOHO can enable you to stay productive without going anywhere.
- Be your own boss
The foremost step to being a boss is the ability to decide where, when and how long you will work. The business can prove suffocating when it involves dealing with undesirable red tape or mundane routines. Break free from the bonds of conventional office routines by being your boss. By working from home, you can enjoy a powerful sense of independence, which is impossible with standard offices.
- Enhanced well-being and health
Those persons who work from a SOHO have a much superior work-life balance. They are mostly more productive and happier than those toiling all day in a corporate office. Less stress, more time for an enjoyable lifestyle and family and increased flexibility make for a healthier lifestyle.
- Expand your circle of friends
By working in a SOHO, a person has more time and resources to expand his network of friends and business connections. Thus, his life will be more colourful than the regular 9 to 5 job. There will also be more time to enjoy with family and friends, thanks to the flexible work hours.
- Unmatched freedom
The business owner can do whatever he likes and refuse to do what he does not. He can develop his work plans and his free time or vacations.
- Low capital outlay
Compared to setting up an independent office, a SOHO does not need major capital investment. It also does not imply investing in an office and a home. Since the home also serves as an office, costs for utilities and furnishings will be much reduced.
In sum, these are all top facts about the relatively new concept of SOHOs. Apart from SOHOs, there are available food courts for sale in Mohali also. Both have become trendy business models in the modern world.
