Working from Home vs Buying Office Space
Working from home is never a bad way to start a business, especially if you are starting while still maintaining your regular day job. Working in this manner allows you to build up stock, customer lists, and to gather the resources needed to turn your part-time business into a full-time enterprise. When the day comes and you decide to invest yourself into your business on a full-time basis, here are just a few reasons why you should view more commercial property and seriously consider buying office space rather than working from home. For the sake of balance, there are also positive reasons for working from home.
Working from Home Has A Negative Psychological Effect
Part of working from home means getting used to isolation, and if you are a writer or have to concentrate, then hours of silence may also be required. Not seeing people, not even for a quick “Hello, how are you?” can have a negative effect on a home worker. Plus, home-workers often have a hard time because they slip into bad habits. Suddenly, the work day starts later and ends earlier, suddenly the TV stays on longer, and lunch breaks go from mere minutes to hours.
Office Space Creates A Feeling of Scarcity
Besides the isolation and silence, one of the biggest reasons why people become less productive at home and why they fall into bad habits is because they take their work time for granted. Why do it now when it can be done later? Buying and renting office space creates a feeling of scarcity. If a job needs to be done, then it must be done within a certain number of hours otherwise the building will close, or it will mean spending the night in an office rather than at home.
Working from Home Costs Less
When you work from home, you already have most of what you need, and there is no need to spend money on buying a building, refurbishing it, adding fixtures and fittings, and/or getting it up to government-mandated safety codes. When you work from home, the initial outlay is very low, and overheads remain very low in some circumstances. On the other hand, there are times when working from home is not possible, such as if you need 3-phase electricity or if you need to operate industrial machinery.
Commercial Property Allows Expansion
Working from home is cheaper, but it has severe limits. The most obvious is that hiring people to work with you on-site may be impossible due to the logistics of your house, and most probably because your house is not zoned as a commercial/industrial property, which means getting employee liability insurance will be difficult. Working from home limits how large your business may become. Increased automation, adding more technology, and increased working hours may be impossible if you are working from home. Plus, getting clients and customers to visit an office is far easier than getting them to visit the micro-office you set up in your home.
Conclusion – Working from Home Is Just the First Step
There are clearly benefits to working from home, especially if you have to work odd hours and/or take care of children during the day. However, working from home should be a temporary solution prior to your business getting off the ground. Use your time at home to repair your credit, save money, and build a client list. When you are ready to enter the real business world, you need to start looking for off-site office space otherwise your business will always remain little more than a money-making hobby.