The overheads associated with running your own business can be staggering. There is, however, an option for entrepreneurs and small business owners to cut these costs significantly – create a Home Office.
For centuries, operating a business from home has proven to be extremely beneficial. From cottage industries that thrived before the Industrial Revolution to Silicon Valley’s super powers, home based businesses have been a go-to option for many enterprising minds.
Here is why you should consider putting your office desk in a spare room (or corner) at home:
1) No Traveling Time/Cost
Not having to spend time in the morning getting ready for work, as well as, not having to spend money on transportation, will benefit your business greatly. When you work at home, the hour(s) you once used to commute can be used to get more work done as well. On top of all of this, there is also the benefit of getting out of bed whenever you want to; it doesn’t matter when you are productive as long as you accomplish what needs to be done.
2) Flexibility and Speed in Work Structure
Working at home allows your business the option of making structural changes quickly. If you want to hire staff or work by yourself, you can do that with ease as long as you have the space. If you are downsizing with a long term lease or rent agreement still in place, you may not be able to do this quickly.
With a flexible structure you can switch working days with ease. Work Saturday and Sunday, then skip Monday and Tuesday.
3) A Home Office Reduces Overhead Costs
When you crunch the numbers working at home tops the list for cost efficiency:
- There is no extra rent or utility bills.
- No cost for office appliances (e.g. refrigerator).
- Everything at home can be repurposed for business.
- You don’t have to spend extra money for lunch.
- You get to deduct some of the home costs from your income tax.
A home office is a definite winner if you are trying to save money.
4) It’s Easier and Less Costly to Test a Business Idea
Your start-up may fail; this is a possible risk when starting a business. What needs to change in these situations is the value of your losses when your business fails. Working at home trims these losses significantly. Think about this – almost everything you used for your home business was already a part of your household. If you had invested in computers, printers or any other office equipment, those can be sold or repurposed.
This is not the case if you had spent millions of dollars on equipment and rent; sadly those amounts may never be recovered.
Now that you have glimpsed the benefits of having a home office, the next time you have a great business idea, see if you can start it at home. If you do go this route tell us how it worked out and how you benefited.