Should You Rent an Office or Work From Home?

When running a small business one of the major decisions that will need to be made is whether to work out of the home or rent some office space at another location. There is no general right or wrong answer, only right or wrong given a particular situation. Some might work well at home while others need the structure of the office. Before deciding it would be a good idea to weigh the benefits and disadvantages of both and how they might apply.

Work at home

Creating a home office obviously saves the expense of renting space elsewhere. Payments are already being made on the house and it doesn’t cost anything extra to work from there. In addition, costs of traveling to and from work are reduced. There are other advantages, including:

Childcare – While a babysitter may still be necessary periodically, working from home will likely reduce the dependence on them and allow the business owner to still spend time with their children while still getting work done.

Environmental control – By working from home the office doesn’t have to be a stuffy setting like most businesses and can be virtually anything the owner desires.

Technology – Working from home is easier than it has ever been before. Computers, the Internet and video conferencing all bring work right to the home office.

Combining duties – When there’s a break from work it might be possible to get things done around the house, too. One has to remain focused, though, on which task is more important at any given time.

Rent an office

While renting space to conduct business increases expenses, some people either just can’t work from home or feel more comfortable in an office setting. Working from home is, for the most part, a relatively new concept, at least to the degree it can be done today. Reasons to rent an office can include:

Organization – It can be easier to get organized in a traditional office because the constant distractions of home life are not there. Concentration may be better without having to worry about whether the children are alright and what chores need to be done.

More space – A rented office likely will provide more room than working from home, which can be very important if the business is expected to grow.

Business minded – Most office space will be located in a business district, which will cut down on potential distractions like neighbors mowing their yards, children playing and friends popping in for a visit. Everyone has a different attitude when entering an office – they know business is being conducted. That may not necessarily be the case when working at home.

For someone who is focused, driven and able to work in a relaxed setting, working from home could be a great choice. It reduces a variety of expenses and is easy to do with today’s technology. Others may need the organization and sterile environment of an actual office. Which one is right depends on the individual business owner.

Guest writer Katherine Watkins writes for a website that discusses the benefits of HELOC vs home equity loans and offers a useful house loan calculator to help homeowners work out how much they could borrow. She enjoys the freedom of working from home, but understands renting an office might be a more suitable option for some business owners.