nwirde.info

Many new businesses start out as home-based businesses. At first glance, it may seem like the ideal solution: work from home in your pajamas, no commute, family-friendly flexibility, extra time to yourself and no restricting overhead costs are just a handful of reasons people are attracted to the idea of running a business from home. For many, there aren’t enough compelling reasons to rent outside office space. Let’s face it, renting office space and the costs associated with maintaining that space are huge barriers to entry. On the other hand, having office space is a symbol of business growth and gives owners the opportunity to expand their business. It’s an important decision to make, so let’s go over some of the reasons why you should or shouldn’t choose one option over the other.PROS
Have you ever sat down and calculated the time you spend in your car commuting from home to the office, day-in and day-out? I’m sure you’ve been frustrated by your commute, not only in time but in money. Gas prices are horrendous, oil changes are an ongoing investment, and tires can cost you an entire week’s worth of pay! Running your company from home is unarguably convenient and affordable. You may also enjoy some of the home office perks, like the ability to write off a percentage of your rent, cleaning costs and a portion of your real estate taxes. As mentioned above, you won’t have to deal with fixed overhead costs. Be sure to check your local zoning restrictions as they may limit the type of business you conduct in residential areas. You should be able to acquire a permit to waive some of these limitations, if approved.If you can make a majority of your transactions happen online (e-commerce) or if you are a contractor or consultant, a home-based business will be your best bet. Unless there are special circumstances surrounding your situation (local ordinances, type of goods you’re selling), you’ll probably never have to move to a brick-and-mortar location. If you’re going on-site to customer locations, you need to set yourself up with a merchant account and ask them to set you up with a wireless terminal to accept credit cards. It looks VERY unprofessional to not accept them, not to mention the inconvenience it causes to your customers who probably don’t carry wads of cash around with them. If you’re doing most of your business online, look into an online payment gateway (preferably not PayPal) to help you maintain your professional appearance. Some tips I mentioned in a previous article about maintaining a professional exterior demeanor while operating out of your home are:• Invest in a professionally designed website
• Invest in professionally designed marketing communication materials (business cards, brochures, stationary, email communications, newsletters) that accurately reflect the tone and desired image of your business and BE CONSISTENT with those communications
• Set up a separate phone line/system to separate personal calls from business calls
• Be able to accept ALL forms of payment, either through an online payment gateway or via a wireless terminal (if you’re doing work on-site)Make sure to keep a line of separation between business and work. Most start-up company owners spend an inordinate amount of time making their business work. Don’t let your work overshadow your family relationships. Be sure to set guidelines for yourself so that your home office doesn’t drive a wedge between you and your loved ones.CONS
It’s hard to argue against the virtues of running a home-based business, as I myself run a graphic design and IT consulting firm out of my own home. However, if I was serious in taking my business to the next level, I would eventually consider leasing or buying office space to assist with my desired growth. Why? Because no matter how professional-looking, how efficient, how great your services or products are, some people just want to go to an office to conduct business. They might Google Maps you to see your address, and if you don’t have an address listed or if your address is in a subdivision, it could potentially kill your lead.Running your business solely from home does limit your potential growth. If your intentions are to function as a one- man shop, then stay home-based. However, if you intend to hire employees, managers, support staff, sales people, et cetera, then you will NEED to move out at some point. Unless you live in a 15,000 square foot compound, there won’t be room for you to reach your goals.Psychologically, moving from home to an office can feel like a huge accomplishment for any business; they feel like they’ve officially “made it.” Working from home, you don’t really get the opportunity to hang a glowing sign out front proclaiming your brand and your success. Your level of professionalism and the way you act can have an effect because you’re physically “in” an office environment. Anyone that works for you will also be affected by the atmosphere change.Working from home can make it hard to distinguish specific work hours from home and family time. Your family should be first, no matter how driven you are to succeed. It may be difficult to schedule time off or vacations because home-based businesses tend to be sole proprietorships (or single-owner LLCs or Corporations), meaning that your business shuts down when you’re not running it. Try to manage your schedule as if you were a brick-and-mortar to avoid some of these drawbacks.In the end, just like most important life decisions, the choice to stay home or move into an office space is ultimately a personal choice based on your goals. Ask yourself where you see yourself in the next three, five and 10 years and plan for that future. No matter how organized you are and how much you’re getting accomplished, you’re running blind if you don’t have your goals and a plan to reach those goals written down on paper. I wish you the best of luck in your business endeavors.© 2011 Lorraine Wolfe