The Advantages and Setbacks of a Home Office
If you are starting a small business or already have one and thinking of ways to reduce your expenses, running your business from home might be right for you. However, this does not work for everybody. It helps to know the perks and drawbacks of setting up a home office to reach the right decision.
To give you an idea, here are the pros and cons of a home office:
If your business requires you to be productive, working from home gives you an extra hour or two to attend to your business. By not having to commute to and from the office, you save time. Moreover, when it comes to taxes and expenses, you can take advantage of the home office deduction and add it as a business expense for lower taxes. And as for operating expenses like internet connection and utilities, working from home saves you a lot of money as opposed to doing your business elsewhere. These are on top of having the luxury of being in your pajamas in the morning or not having to worry about what to wear to the office. And with the power of technology and internet connection, you can have Skype meetings with clients and suppliers as well as do business transactions online.
One of the setbacks of a home office is the availability of office space, especially if you have other members of the family living with you. It is important to have an extra space like a room or den to convert as your office. Not having one can be challenging because of the possibility of getting distracted. Additionally, if the nature of your business requires meeting with clients personally, the informality of setting your business at home can be an issue unless it has a separate entrance and set-up enough to look like an office.
A home office is a practical option especially if you are concerned in reducing expenses but before converting your garage or den to one, consider first the advantages and disadvantages it offers.