| There are a variety of issues that support both sides | | | | |
| of the off-site vs. home-based decision business | | | | The off-site business owner will have rent or |
| owners must make. Often it is obvious - a no-brainer, if | | | | mortgage payments to make. And, of course, utilities |
| you will. But just as frequently, a lot of thought, | | | | and upkeep add to your monthly/annual list of |
| discussion and pencil-to-paper time are devoted to | | | | expenditures. |
| coming to the right conclusion. | | | | |
| | | | | Wear and tear on your home is an expense many |
| HOME-BASED | | | | people don’t consider. You’ll most likely need to |
| There are a variety of easy-to-capture reasons for | | | | replace carpet more often, repaint or redecorate if |
| wanting to work at home: | | | | you’re home-based just because of the additional |
| · Location, location, location – the | | | | hours you spend in your office. |
| most convenient work address around! | | | | |
| · Travel time – a few steps and | | | | Another area to consider is functionality. Do you have |
| you’re there. | | | | a separate entrance for your clients to use? You |
| · Wardrobe – casual as you please. | | | | might even have to add a bathroom for your |
| · Expenses – no gasoline used | | | | customers’ convenience. |
| driving to work, less eating out and no need for an | | | | |
| extensive supply of business attire. | | | | If your lifestyle changes, working out of the home |
| · Flexibility – most often you choose | | | | might not be the best solution. Is your house large |
| the hours you work, opportunity to go to the kids’ | | | | enough to allow you to consider being a home-based |
| schools programs, babysit the grandkids periodically, | | | | business? Many people have expressed that issue. In |
| etc. | | | | one instance, what was a small 3-bedroom ranch, |
| | | | | perfect for downsizing, is too small because two of |
| Though all of this sounds great on the surface, there | | | | the three bedrooms are now offices. |
| are also just as many reasons to have an office | | | | |
| located elsewhere. | | | | SERVING YOUR CUSTOMER |
| | | | | Service-providers are perfect for home-based |
| OFF-SITE | | | | businesses, as they usually go to the clients’ homes |
| You might consider buying or renting office space | | | | or offices. But if you have a business that requires |
| because of the following reasons: | | | | people to come to you, the questions to answer are: |
| · Location, location, location – | | | | · Do you want people coming to your |
| convenience to your customers. | | | | house? |
| · Travel time – sometimes a drive | | | | · Do you have a separate entrance? |
| on the way to or home from work is a good time to | | | | · Do you have restroom facilities |
| get your thoughts together to start the day, or to wind | | | | convenient to the office? |
| down before arriving home. | | | | · Do you have off-street parking? |
| · Wardrobe – many offices are | | | | · Can you put a sign in your front yard |
| casual, and depending on your customer base, you | | | | to help identify yourself as a business? |
| can be, too. | | | | · Does your neighborhood association |
| · Expenses – if your office is | | | | allow it? |
| located near retail shops, the gas you spend running | | | | |
| errands most likely will make up for some of the gas | | | | Many changes to accommodate on-site office visits |
| spent driving to and from work. | | | | might suggest that you rent or purchase office space. |
| · Flexibility – your client base | | | | |
| dictates when you work, and unless you have walk-ins, | | | | Lastly, but I believe most importantly, is yourself. If you |
| you can easily provide yourself with the flexibility that | | | | have discipline to keep home and work separate, a |
| the home-based business owner enjoys. | | | | home-based business might be right for you. But if you |
| | | | | find that you procrastinate, or just can’t seem to |
| Both categories have the same 5 advantages. Often, | | | | tear yourself away from the office, having that |
| it’s how you look at each, and what you prefer. | | | | physical barrier of an off-site office might be the better |
| When you look at overhead, though, you’ll find a | | | | choice. |
| huge difference. | | | | |
| | | | | These are issues that everyone faces when trying to |
| OVERHEAD/MAINTENANCE | | | | make a decision whether to be home-based or |
| When working from home, and you’re an | | | | off-site. Each person is different, and each situation |
| established business, you can receive tax benefits. | | | | has its own deciding factors. Though the conclusion |
| These include a portion of your household expenses | | | | would appear to be an easy one, a great deal of time |
| and utilities that can be claimed as business expenses. | | | | and consideration should be given to whether it is right |
| However, there are many restrictions, so it is | | | | for you. |
| imperative to consult with your CPA. | | | | |