by
A. Mustaffa Yussof (12 Apr 1998)
Why the big guys like to kick home based entrepreneurs in the face
A few weeks ago I went to a daily newspaper to insert a classified advertisement
to promote my "100 Home based Businesses For Malaysians" manual. I
was shocked when they refused to allow me to insert my ad! They had a policy
against businesses operating from home (read: fly-by-night operations) advertising
in their classifieds and any ad cannot invite others to work from home. I have
not come across a more idiotic policy. Have these guys got their heads in the
sand throughout the home based business revolution?
When I think of it and after
discussing about the incident with other home based comrades, we should expect
any large organization to be hostile to home based entrepreneurs. I have come up
with 8 reasons why it is in their interest to keep home based enterprise suppressed.
Tell me if you can think of more.
Losing the carrot and the stick
Corporate culture has always dictated that their employees should be thankful
that he has a job. Any silliness on the part of the corporation should be tolerated
by the employee because without the corporation the employee ceases to exist. Not!
With a knowledge of how easy
it is to start a home based business, the employee will feel more secure in knowing
that if the corporation continues in its oppression of employees, he can always
quit (if Karl Marx knew how to start a home based business, communism needn't
have reared its ugly head). To the corporation, it would be like having their
reproductive glands ripped off. No longer can they motivate employees with
(empty) promises of salary increment and no longer can they threaten their
employees with threats of demotion and dismissal. To all the oppressed employees
out there: stop sniggering at the latest Dilbert dig at managerial stupidity and
do something about being independent!
Exposing the weaknesses of the corporation
The productivity of many solo entrepreneurs can equal that of the large
corporations easily. With many equalizers like multi-tasking software, the
Internet, home fax machines and courier services, a solo entrepreneur can do
the work of 50 people combined. What does that say about corporations? In one
word: inefficient! When shareholders begin to realise that week-long conferences,
corporate limousines and chauffeurs, high rise offices and unlimited expense
accounts are unnecessary for productivity, these perks will be pulled out from
under the fat cats' feet and their raison d'être becomes questionable.
Declining Demand For Real Estate
Let's face it – if everybody starts to work from home, who is going to use
the high rise offices and commercial centres? We all know that out of every
ten tycoons that Malaysia has, nine probably built his fortunes from real estate.
The creation of wealth through real estate is very high on the corporations'
agenda and the emergence of a threat which will half the demand for real estate
should be suppressed as far as possible.
Stiff competition from home based businesses
Once I was asked to provide consultation for a company which wants to put up
its business on the internet. The guy in charge was shocked to find out that
my team charges only a fraction of what mainstream web designers charge. We
were not intentionally trying to undercut our competitors but we saw no point
in charging the same as our corporate competitors. They have to pay their staff,
landlords, interior designers and advertising agencies but we only have to pay
ourselves. Our customers are our reason for being, so is there any reason not
to pass on our savings to them?
It is not only lower prices
which will win the day. Service counts for a lot too. Every now and then, we
see news of CEOs going into the field. It becomes news because it is not something
which CEOs do everyday, or for that matter, once a year. In contrast, the home
based entrepreneur is out on the field every time. Work gets done faster because
we get down to doing work as soon as we get off the phone. Decisions are made
faster. We don't have to worry about staff being rude.
With competition like this,
how can corporations breathe easily?
Declining popularity of the stock market
Have you ever been to a securities firm and observed the punters? Try
having an in depth conversation about business issues and you will probably
get blank stares. The truth is, most stock market players are out to make a
quick buck. Trading is based on rumours, superstition and sentiments not
unlike what happens in a casino. If they realise that having a home based
business is a less risky investment which provides a more stable future,
they will be running away from the stock market in droves. How are all the
remisiers going to earn a living? What will be the future of securities firms
and their employees? But I do have to take pity on a particular home based
business comrade: the fortune teller / numbers predictor / astrologer whose
services may be soon redundant.
Declining demand for multi-level marketing opportunities
Don't get me wrong. I happen to love MLM. I appreciate the efforts of
companies like Amway which have provided wonderful opportunities for home
based entrepreneurs without capital and risk. To this day I can't think of
an easier home based business to start than MLM. What is not so right in the
industry is that many corporations, realising the potential of MLM in pushing
products into the market, jump on the bandwagon. We see many corporations who
have no experience whatsoever in MLM, setting up an MLM subsidiary to cash in
on the MLM wave while at the same time exploiting naïve entrepreneur
wannabes who will blindly purchase the company's products to maintain their
volume.
Who wins in the end? The
corporations of course! By the time the poor distributor has lost his savings
in stockpiling useless products, the MLM subsidiary will probably have been
amalgamated into their retailing arm under the guise of restructuring. The
products now mysteriously appear on supermarket shelves after gaining
acceptability from the market.
To these exploiters, non-MLM
home based business opportunities provides competition to the idea that an
MLM opportunity is the only business which one can start with an investment of
less than RM100 and personal effort. Once their prospects realise that one
can run a conventional business from home with very little financial heartache
and risk, MLM opportunities becomes more difficult to sell.
My advice to would-be MLMers
is look out for signs of corporate exploitation: a CEO who has not heard of
the word 'upline', obscure and inferior products which are sold at exorbitant
prices and an office which does not open in the evening.
Declining demand for overpriced services
The home based business owner is a guerilla. Unlike corporations who have
expensive budgets for expenses, home based entrepreneurs cannot afford such
things like expensive training, television or quarter page advertising and
advertising agency fees. They make do with what they have and adopt a
do-it-yourself attitude. To develop your home based business, nothing will
be cheaper than writing your own advertising copy, teaching yourself business
skills by reading books, using classified advertising, networking online and
offline, spreading goodwill by providing good customer service, writing your
own press releases and drafting your own agreements. When it is absolutely
necessary to engage outside services, you have to economize and will naturally
look at services provided by fellow home based entrepreneurs. The services
that are provided by corporate professionals will not seem so sacred anymore
(which is why some of their employees are freelancing in their own time to
provide the same services to home based businesses at a much cheaper rate).
Envy
The typical manager is mostly overworked, overstressed and values every sen
of his now fat salary which has been secured through years of political
maneuvering, sweat and tears. Coupled with the prospect of having to fight
traffic jams and feeling insecure about on whose head will the corporate
retrenchment axe fall on next will only make him more envious of the home
based entrepreneur who is his own boss and has managed to start-up his
business with relative ease. A typical conversation between an office-bound
manager and his home based entrepreneur friend goes like this:
"Hi Mat, what are you up to?"
"The usual-lah Johnny. I found out that the CEO wants to spot-check
the office, my secretary has taken emergency leave and my colleague just
got retrenched - just when I was starting to unwind from the massive traffic-jam
on Jalan Sultan Ismail this morning. So what are you up to?"
"Nothing much. I just got up and I'm calling you from the kitchen making
my morning coffee. I got a nice consulting assignment from this company which
closed down its HR department due to the recession and prefers to outsource
its training. I'll catch up with you later, my daughter is pestering me to
send her to kindergarten."
"Okay, catch up with you later (sob-sob)."
In conclusion, I'm not advocating for the demise of the corporation.
But I'd like to see us home based entrepreneurs being treated with a lot
more respect. We need each other in the business world and the big guys
should realise this. In America, major corporations like Canon, Apple and
Microsoft already realise that the home based business market is worth
billions and are trying hard to woo home based customers by directing their
promotional campaigns at them. I'll know that we have arrived when I see NST
publishing the Home based Business Times!