Accomplish Something As a Small Business Entrepreneur

The idea behind the small business opportunity is usually the first place a person looks towards to find an additional form of finance. In the past the first place a person would consider to develop extra income was with the search for a second job. The evolution of the internet has placed a stop to the idea of the second job in favor of the generation of the small business entrepreneur. The internet is the new source of residual income business that most of the small business entrepreneurs look towards. There are many opportunities available to the new small business entrepreneur and the following covers only a few of the many avenues available for a residual income business.

The most popular form of small business opportunity comes from generating an online store to sell multiple items to consumers all over the internet. This is a model of comfort based on the physical stores in existence that survives every year through the profits of selling multiple small items and accumulating a profit. Some individuals have found success with this strategy when they find a demand or niche that can be filled, however most fail. The theory is good for a residual income business opportunity but it requires the backing of a major company or the financial stability to wait for a business to become established with brand recognition. A residual income business of this nature is a long term investment of time and possibly money that may pay off in the long run if a person can survive that length of time.

The creation of a new small business from a company that already exists is an additional form of residual income business opportunity. You see advertisements on a regular basis for a small business opportunity to generate an at home business based on an existing program. The small business entrepreneur can receive help form these companies as they receive assistance with website development, product identification and sales processing options.

If you are selling a large number of smaller items then the establishment of a company such as this will only assist your residual income business opportunity. There is a catch though when you are creating a residual income business with these companies. The assistance offered with these companies often require that you find methods to generate traffic to your developed site. The drive to create online traffic is another way of phrasing that you will be responsible for the advertising of your site, a concept that can be quite complicated online. Choosing not to pursue advertising will ultimately lead to the destruction of your residual income business opportunity.

The last small business opportunity is finding a company that offers the “Big Up-front Profits and Residual Income” system. The high generation of profit from the results of selling big ticket goods is what this system offers an interested individual. This is due to the fact that the profit from the sale of one of these big ticket items is equivalent to the profits of many smaller items. In addition, finding a company that will not only help you design your sight but offers advertising assistance is gold in this type of market.

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

Sometimes to understand the future we have to have some historical perspective.

We often forgot that before the 19th century, and prior to the industrial revolution, nearly all offices were small offices and/or home offices, with very few exceptions. Now that small business and the self-employed represent the backbone of the current economy, it seems that history does indeed repeat itself.

The US economy no longer is dominated by giant corporations. The US Small Business Administration (SBA) reports that fully 99% of all independent enterprises employ fewer than 500 people. This accounts for 52% of the US workforce according to the SBA.

Additionally by the end of 1999, the service sector had grown to 104.3 million jobs, representing 81% of non-farm employment, and the goods-producing sector, which includes manufacturing, construction, and mining represented 25.2 million jobs, or only 19% of non-farm employment.

I do not know how many farm related jobs there are, but I do know that 81% and 19% add up to 100%.

This tells me that since at least the year 2000 probably over 80% of jobs are now service related and less than 20% of us are now employed in manufacturing. That means as a nation we do not really manufacture much any more. Can you say trade deficit?

We no longer have an industrial economy, just like we will never again have an economy based on agriculture.

The advent of the personal computer in the mid 1990s, along with breakthroughs in voice and data communication, created opportunities for businesses to decentralize and allowed for a return to the trend of the small office concept.

Since the end of the 20th century the term “SOHO”, an acronym for “Small Office/Home Office” has come to be used to define this important business niche.

New technologies will continue to create a demand for individuals who work from home or in a virtual office. Many people are now employed as consultants, independent contractors, or organized as small business entities with very specialized services designed for the project outsourcing of larger companies, often not even industry or country specific.

The SOHO or online virtual office is not just for consultants and independent contractors any longer. The members of many other occupational ranks, and especially online business owners now help comprise this diverse sector.

A large array of products and services also are designed specifically for the “SOHO” market. Many books are published specifically targeted to this business model, everything from general business advice to guides on setting up fairly sophisticated computer systems, telecom systems, and Internet and Intranet systems.

The small business entrepreneur generally has demanded and usually has always benefited from high technology, allowing small business to be competitive.

So, if you do not own a farm, chances are that in the future you will be working in the service sector and quite possibly from your home office. This probably holds true in most other developed countries as well, due to an increasingly underemployed labor force and shrinking job markets.

The online virtual office is here to stay and is for anyone that seldom needs an office. If you own a laptop with wireless connectivity you may be lucky enough to work pretty much anywhere, if you have access to the Internet.

But let’s take it one step further for those who would dream of living where they wish, and working online from wherever they are. Work is no longer necessarily site specific.

Is it really just a dream? Not any more.

More and more people are finding that with increasingly more affordable technology, VoIP services, videoconferencing, and reliable worldwide courier services, they at one time or another may find themselves working from a beach, or a mountain top…and in some cases may rarely have to make an appearance at the traditional office again.

Saving a Ton on Traffic – Best Deals Aren’t Downtown

 Downtown is the trendy place to be.  No matter what city you live in or near, the downtown area is where everything is concentrated.  You have businesses, clubs, restaurants, activities, stadiums, events- everything you could possibly want is downtown.  Because downtown is so central and so concentrated, it’s where everyone wants to be- including data centers and collocation facilities.

The High Price of Downtown
 
But downtown comes with its own host of problems.  The main disadvantage of downtown is the high cost of real estate.  Everyone wants to be there.  And because of this, companies have to pay a premium to locate downtown.   If rents rise, people are either forced to pay higher rent or leave the location that they perceive to be prime.
 
Unfortunately, this doesn’t help the consumer, especially when it comes to data centers and colocation.  Because these facilities are so specialized and require so much energy, power and infrastructure to run, they’re not likely to move locations if rents are raised too much.   In fact, it would be a disadvantage for downtown data centers to do so because of the costs associated with moving an entire data center and the inconvenience it would cause for the customers.
 
So, when rent goes up, colocation facilities are forced to pay.  In order to make up the costs, prices are raised or services are cut in order to maintain the same margin.
 
The Best Deals Aren’t Downtown
 
If you’re looking for the best deal on colocation, downtown is not the place to look.  The farther away you get from the city, the less expensive real estate is.   There are many reasons for this, but the point is that data centers don’t have to pay the high premiums for real estate.  Without these excess costs for rent, facilities are able to pass these savings onto customers.  Not only can they offer cheaper prices per rack, but they can also include more bandwidth and more services.  By locating away from downtown, you’ll get at least the same quality of service and in many cases you’ll get better service without having to pay the high prices that you do downtown.  
 
A sample price comparison of a facility located just outside the city center and a facility located right in the heart of downtown is as follows:
 
Downtown facility-

 ½ Rack- $650 (Does NOT include traffic)

Full rack- $1200 (Does NOT include traffic)
 
It is not possible to rent space in any smaller amounts.  It’s pretty much all or nothing, which doesn’t accommodate the needs of smaller businesses or allow for gradual expansion.  Other services include a power generator (which belongs to the building and therefore they don’t have complete control over its usage) and 100mps ports.  
 
Facility near, but not in, downtown-  
 
1/8 Rack- $175 (includes 50 GB traffic)

¼ Rack- $350 (includes 200 GB traffic)

½ Rack- $500 (includes 350 GB traffic)

Full rack- $900 (includes 800 GB traffic)
 
Other features include a power generator which is owned by the company allowing more control, owning their own facilities, 100 mbps ports and free internal traffic with an internet account.  
 
Savings Passed on to You
 
As you can see, facilities that are not located downtown can afford to pass on the savings to customers.  Not only is it less expensive to rent a rack, but it also comes with more features, such as included traffic and free internal traffic.  Not only that, but hosting away from downtown will save you on other costs you may not even have thought of such as not having to pay for parking.  All-in-all, regardless of where you’re located, it’s always much cheaper to host your servers outside of downtown than it is to host them right in the heart of downtown.