SmartHomeOwners

Starting a new business means you're ready to take control of your life, finances and dreams.  But with so many possibilities, you might be wondering if you should run your business from home or a commercial office.  There are pros and cons for both options, so read below to discern which will work best for your situation.

Home Business Pros and Cons

There are a number of pros and cons when operating a business from home.  On the positive side, you can be flexible in your work hours, possibly spend more time with family and stay home with your children, work in casual clothing, and enjoy several tax write-offs for your home office.  Also, consider the overhead costs you'll avoid when you don't have to pay expensive rent for a commercial office. 

Operating a business from home also has its downside.  You may be exposed to numerous distractions throughout the day, which can hinder your productivity.  A home business often interferes with family life, or vice versa.  When working at home, you may never feel that you're really "off work" because your office is in your home.  Also, home businesses are watched closely when it comes to state and federal taxes, so you'll need to be careful to make sure all tax write-offs are legit.  Depending on your location and the type of business, you may face zoning restrictions from your local building/zoning department.  Working from home often brings seclusion, giving you the "hermit syndrome!"

Commercial Office Considerations

Renting a commercial office can be expensive, but it does hold many benefits as well.  You'll be able to expand your business and receive customers to a professional setting.  This is important if you have a localized business with walk-in clients.  A commercial office gives you a sense of going to work each day for set hours, instead of always working (such as with a home business).  You can leave your work at the office and enjoy a more worry-free home life.  Having a commercial office can also provide tax benefits because you can deduct office rent, utilities and other overhead expenses directly from your income.  If your business needs plenty of room or storage space, a commercial office will probably be best. 

The main disadvantages of renting a commercial office include less flexibility in your work schedule, you'll need to pay for daycare if no one is home with your children, and you'll have to pay the rent and other expenses up front before your business turns a profit.

For some businesses, it's simply not feasible to operate at home.  On the other hand, some can be started at home but might have to be moved to a commercial office later on as the business starts to grow.  Consider these pros and cons carefully and choose the option that will best fit your situation.  Also, examine whether or not you have the determination necessary to operate a business from home or if a commercial office would better suit your personality and business drive.