The Perks And Pitfalls Of Running Your Small Business From A Home Office Operating a business from home offers small business owners some notable advantages—and some considerable disadvantages, as well. Some entrepreneurs find running a home-based business works exceptionally well for them, while others do much better at an office located somewhere other than where they live.
Consider the following pros and cons before you decide whether to build your business from the home front or work from a different office location.
The Perks Of A Home Office
Flexible work schedule –Working from home often gives you more control over your schedule. You generally have more freedom to take time off during the day and then pick up the slack by working at night or early in the morning.
More productive time –Without having to waste minutes or hours driving to and from an office, you have more time to get your work done. You can jump right into the tasks at hand—without worrying about shaving or fixing your makeup and hair.
Fewer distractions –You have more control over your surroundings (with some exceptions as noted below), which ultimately can result in less stress and more peace and quiet to do what you need to accomplish.
More cost-effective than an office elsewhere –When you work from home, you don’t have to budget for office rent. You’ll also save on fuel costs because you don’t have a commute.
Lower wardrobe costs –Depending on your type of work, you may not need to keep as extensive of a professional wardrobe than you would if you had an office outside of your home.
Less food and beverage spending –Coffee at home is far less expensive than hitting the Starbucks drive-thru on the way to the office. You will be less inclined to eat out for lunch, too.
Home office deduction on your income tax return –Depending on your business legal structure, you may be able to report a portion of your electric bill, heating expenses, etc. as a tax deduction. That means more money in your pocket and less to Uncle Sam.