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A small business blog featuring tips to help entrepreneurs succeed in the small business world. Topics include family business, human resources, marketing, money, networking, operations, ownership, startup, taxes and technology.
Moving from a Home Office to a Commercial Space
Working at home requires a strong ability to separate personal and business lives. A home office contains a lot of distractions, whether your family distracts you from your work or your work distractions you from spending time with your family.
But, if you work from home and are considering moving your business to a commercial location there is much more to take into consideration than whether you are too distracted. If you simply pack everything up and move without looking at every aspect of going commercial, you could negatively affect the future of your business.
Consider these three factors when deciding to move:
Most importantly you need to examine the expenses that are part of going from home-based to commercial-based operation. Obviously there are the one time expenses of actually moving into a new building, but you will likely also need to buy office furniture, more equipment and insurance.
There are also the added monthly expenses of operating a commercial business, rent, utilities, etc., which will make a much larger dent in your business’ income than running things at home did. You will no longer be able to use your home office as a tax deduction. And, of course, you’ll have to spend more money on gas as you will now be commuting back and forth to work each day.
If you can afford the move and want to expand your business to a larger clientele and higher production rates, then moving to a commercial location will definitely accomplish that goal. You will have the accommodations to hire staff (if your revenue allows), which will quickly increase your product/service output. This, of course, will increase cash flow.
One thing to consider, however, is that the growth of your business means more time and attention is required of you at work, and less at home. If it’s important that the time you have available to your family remains the same, then moving to a commercial location may not be the best thing for you or your business.
A commercial location also provides a private place to meet with your clientele, rather than a coffee shop when you were working from home. It also means no more pajama days at the office, as a more professional appearance will be necessary on a daily basis (although, I guess you could have pajama day, if you so choose).
If you’re still on the fence about it all, consider taking the middle route. There are services out there deemed “virtual offices” that provide all the perks that a commercial business location would provide, but without moving out of your home. These perks can include a business address, a receptionist to filter calls and even a meeting location.
Whatever you decide, be sure you weigh all the factors. There is no general right or wrong decision here – it’s simply what is right (or wrong) for you and your business individually. Do some calculating and soul searching, and you’re sure to make the right move.
• Businessweek.com: Home Office or Commercial Space?
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