Working from home

‘Home alone’ takes on a different meaning when your living depends on it, writes Sophie Toomey

MORE Australians than ever can’t wait to get out of the office. Figures for 2005 from the Australian Bureau of statistics show that as many as 1 million Australians have thrown in the corporate grind and are going working at home; a large number as solo operators. That is an increase of 79.5 per cent on 2003 figures.

Home-based businesses may once have been considered the domain of the wild entrepreneur, or those who simply could not adjust corporate life, but that is no longer the case.

Robert Gerrish is author of Flying Solo: how to go it alone in business. He says that working alone, or soloism as he calls it in his book, is no longer viewed as the poor relation to a “real” office-based job.

Though soloism may be perceived as the domain of working mothers who cannot or will not juggle parenting with child-unfriendly office hours, the reality is that home based and solo work is overwhelmingly dominated by men. Figures from the ABS tell us that 70.7 per cent of home businesses are operated by men going it alone. The 2001 census showed that the numbers of professionals working from home surged ahead with accountants, lawyers, marketing professionals and administrators taking to their home offices in droves.

Why is the uptake is so enthusiastic?

Barbara Pocock, the director of the Centre for labor research at the University of Adelaide, says there is no clear answer, but that it is not always by choice. “There is labor market data to suggest that older men who find themselves unable to become re-employed having been retrenched give up on the search and start out on their own. So a lack of alternatives drives some. That may also include mothers whose work is just not flexible enough. It is at least in part a phenomenon of limited options.”

Figures support Pocock’s statements with statistics showing that one of the highest uptakes in home based work is among men aged 30-50: the typical age bracket for retrenchments. But that is not the full story.

Gerrish agrees with Pocock that corporate collapses and mass redundancies go some way to explaining the phenomenon. “There is no job for life concept now and that makes soloism appear a less risky option. Many resent the sacrifices they have to make for work the most obvious of which is free time. When we asked people why they went solo the majority said `to regain control of my working life’.”

New South Wales minister for small business David Campbell explains that while there is no clear research on why people are taking up the solo life, there are some generally accepted factors that have facilitated the move: “Advances in technology, a preference for flexible work conditions and the trend for large companies to outsource work (which is ideal for home operators).”

While it has much to recommend it, going solo has its pitfalls, says Campbell. “Many home-based business operators underestimate what is involved in operating from home. They need to remember that they won’t have a PA, unless they get themselves a virtual assistant. They won’t have in-house IT support and will need to learn what’s involved with regular financial reporting. They also have to be aware of Workcover issues and submit regular activity statements to the tax office. As well as that, the pressure of when the next pay cheque comes rests with you. You have to be prepared for lean times and to be taken on a steep learning curve.”

Campbell says isolation can be another issue. “You miss out on the social interaction with colleagues and bouncing ideas around for additional input. The buck stops with you.”

When Lindy Thompson set up her own PR consultancy from home specialising in the food industry it was because of disenchantment with corporate and consumer PR. “I have been doing it now for five years and still love what I do.”

Thompson says there are definitely pros and cons. “The day-in, day-out of working alone can get to you. You really need to like your company! But in my job I can work alone for days and then have the night-after-night social functions that are part of my job.”

Pocock says it is common for those setting out alone to believe that it will create an automatic solution to issues of work life balance.

“Actually small business is notoriously demanding and most operators work longer hours than they’d hoped or planned for and certainly more than they’d like. Most people don’t believe that before they start and won’t be told. It’s a case of suck it and see.”

Pocock explains that as a solo operator there is less control of the pace at which work comes in. “If you have been a lawyer in a legal firm there is some external control of your work flow. That isn’t the case at home. People tend to say yes to everything that comes, for a while.”

Pocock says that a lot of the service industries that “feed” soloists are greedy professions notorious for high expectations and tight deadlines. “That doesn’t change just because you are doing the work for them at your place.”
Statistics show that home-based operators tend to work long hours with 15 per cent working more than 50 hours a week and 43 per cent between 35 and 50 hours a week.

Gerrish believes that while money is part of the reward, for those flying solo there are other motivators. “We found lots of soloists are over the money thing and once they make the break to soloism, money plays less of a central role in their lives. Time is the new money. They prefer to economise a bit more, because they get to work more flexibly and spend more time with family. This is as opposed to the old model of having plenty to spend, but having to work like a dog at the expense of family time to earn it. People have had enough of this, and rightly so.”

Thompson says that the biggest challenge for her is to separate her home and work lives when the two happen in the same place. “The biggest challenge for me is closing the door in the evening and switching off to attend to my other life. That can be hard partly because I work with people who keep unconventional hours and expect me to be on call outside nine-to-five. Managing time is difficult for me.”

Thompson says administration can be another nightmare. “You have to keep on top of this area if you work for yourself. My advice is, once you can afford it, to invest in a book keeper to do the number crunching side of things.”

Forward thinking, hard work and marketing are critical to making flying solo work. Says Campbell: “Timing can be crucial, so having a business plan to start with is helpful. Seek advice and research before you set out. Plan ahead.”