Whether you’ve been in business for awhile or you’re just starting out, you have a variety of options in terms of how you work. Should you rent office space or work from home? Choose wrong, and your business could suffer…or you could end up with a host of unnecessary expenses. Today we’ll take a look at the pros and cons of both office space and working from home, to help you decide which works better for you and your business.
Office Space
Pros
- Distractions. You’re away from the distractions of home life—things like household tasks, kids, pets, and anything else that might take your attention away from your work.
- Boundaries. You can more easily leave the work at work than you can when you work from home. It’s also easier to set boundaries with family and friends, who may see an “office office” as more legitimate than a home office might seem.
- Working with a team. While there are many strategies and technologies that make team building just as effective (if not more so) in the virtual space, many companies still prefer to have people get together in the same room for meetings, face to face. Having office space makes these meetings a lot easier.
- Perception. If you have a business that requires having clients come to you, rather than you going to them, then having office space is almost a necessity. You can’t have effective client meetings at Panera or Starbucks and maintain an air of professionalism and legitimacy.
Cons
- Inefficiency. You’re away from home, which means it’s as hard to get household tasks like laundry and dishes done as if you were working a corporate career (in fact, one of my personal productivity secrets is that I sandwich household tasks in between meetings).
- The Commute. You have to drive to your office, versus walking down the hallway.
- Expenses. Having an office space means extra expenses for rent and and include other things like phone lines and Wifi.
- Reduced productivity. While having an office space means your team can meet in person, meetings have actually been shown to waste a ton of time and money. So if you insist on having meetings, at least have effective meetings with a clear time frame, an agenda, and as few people as necessary to get the items on your agenda accomplished.
- Distractions. Just because you’re not working from home where your kid and your dog will distract you doesn’t mean you won’t actually still have distractions. Coworkers, whether they’re in the same office space or working down the hall, tend to be time suckers, who will stop by for a chat whenever they’re taking a break. You’ll want to nip that in the bud right away so you keep your productivity high.
Working from Home
Pros
- Efficiency. Working from home means no commute. That means you get an hour or two back every single day. Personally, I use some of that time for household tasks, some for reading up on my industry, and the rest getting even more accomplished in my day. In fact, by the time most people are arriving at work, I’ve already gotten more done than most people accomplish in an entire day.
- No Commute. Obviously, with no commute, you save a ton of wear and tear on vehicles, save money on gas (and save the environment!), and ultimately have a lot more time (see “Efficiency” above).
- Reduced expenses. When you work from a home office, you save a ton of money on rent and extra services like Wifi.
- Deductions. When you work from home, you get to deduct a portion of your mortgage, utilities, and technology services from your taxes. Yay! (check with your accountant to find out exactly what and how much you can deduct)
- Working with a virtual team. In the digital age, we’re getting much better at using technology to communicate effectively. In fact, at Business in Blue Jeans it is extremely rare for us to have an actual meeting at all. We simply don’t need them. And when you communicate by email, you leave a digital paper trail that is enormously helpful if you need to track down who said what and when.
- Productivity. With no coworkers down the hall or in the cubicle next door, you’ll be able to minimize a lot of distractions and interruptions in your work flow, making you able to do more in a shorter period of time.
Cons
- Carving out the space. Many people are able to dedicate a room to their home office. But for many, finding a spare bedroom or a den (or even a basement lair) can be a challenge. Thus, a lot of “home offices” are just a corner in the living room where you set up your desk. For others, a home office is wherever they can find a space to sit with their laptop.
- Distractions. I’ve always thought that family members who also live in your home could be a big distraction until you become more effective at setting boundaries. But recently, I’ve begun hearing business owners talking about needy pets as well. You can tell a family member that you’re working…but it’s not quite so easy to have that same conversation with your dog (or your cat, who might just like to curl up on top of your keyboard, making it difficult to write, for example).
- Perception. If your business requires your clients to come to you for some reason, then you won’t want to invite them home with you. This situation can become a bit challenging, so you’ll have to set up ways to manage these meetings…and Panera and Starbucks aren’t always the best answer.
So…Should You Rent Office Space or Work From Home?
Deciding whether to rent office space or work from home can be a big decision. We recommend that you base your decision on your business model, individual needs, and yes, your personality.
Business Model
If your business model requires that clients come to you, then you should have a professional-looking space for them to visit. It’s really just that simple. On the other hand, don’t be afraid to break the mold of how your industry operates. Be willing to guide the dialogue and go to them, if you prefer.
I try to avoid any and all unnecessary in-person meetings, because it is just one of the many ways that I protect my productivity. That means I have many meetings on the phone, which results in a much more effective and efficient conversation. And when I do need to meet a client in person (which is, admittedly, important to relationship-building with clients), I prefer to visit their locations so that I can get a much better sense of the company, their corporate culture and their brand, as well as any problems they might be facing that they need my help with.
Individual Needs
If you have a lot of distractions at home and/or have a hard time finding a place that you can call your home office, then you may want to take a look at office space, or at least a co-working facility. It’s important to know what your limitations are and what you really need to be effective in your working environment.
If you’re working from a corner of your bedroom and that pile of laundry just keeps staring at you…and there’s nowhere else in the house where you can work, consider a location outside of the home.
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Decisions Decisions 🙂
Thanks Susan
Nice article. I am a freelance mechanical design engineer, I design all sorts of process equipment for the engineering, food and pharma industries. I have been working from a home office for a long time and it works for me. I love being freelance but I am always on the edge of taking on an office and staff, but I love the freedom of being freelance. I am very productive from a whole room properly fitted out as a modern office and I have a very understanding and supportive wife. I have kids and pets but don’t get too many distractions. I would like an office but I spend that much time working that working from home with my family around means I don’t feel like I’m missing out on being with them as much. I get to have breaks and have lunch with my wife and 2 year old daughter which is nice….my big decision is whether I stay freelance or start to expand…..
This is a great read. I agree with your recommendation. Renting an office space or work from home can either be both advantageous and disadvantageous for your business, that’s why before deciding on which one to choose, you should always consider a lot of factors first like is it ideal for your business? Does your business needs an office space? etc. The factors stated on the article should be part of the consideration.
For someone that has always worked from home maybe renting a small office is a way for to become more productive because you’re paying rent and you’re not going to waste your time there. You’re going to be more focused, have a plan, have goals, etc. Working from home provides lots of opportunities to waste time and be unproductive. If you’re honest there’s always stuff to do when you’re at home that gets in the way of productivity.
I love this article thanks. I work from home, and I seem to have a personality that allows me to put boundaries around housework etc. However, I don’t have young children – older ones who are mainly out.
The good hing about working from home is that there is no wasted time – saying hello to people you share office with/walking or driving to office. I can work from home fro 2 hours – get heaps done and then choose to see a friend and go to gym. Get back home and do another 2 hours. I find home very productive.
Helpful article, this will help many freelancer especially here in the Philippines
Impressive share.Helpful for many freelancers
I sure liked it when you said that renting an office space is better than working at home because it will ensure the person that they are away from in-home distractions that can stop them from working peacefully. I guess that was the reason why my hubby asked me to look for an office space he can rent. I wouldn’t be surprised that he would ask for something like that since he can’t ignore the kids when they come to him. Anyway, thanks!
Hi Emery, I’m not sure I would say that renting an office space is ALWAYS better than working from home. I myself work from home and prefer it quite a bit. I do have a home office specifically for working, so I am able to separate work from personal. But for some, having a dedicated work space outside the home is a necessity. What works for you is probably specific and unique to your situation.
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My advice to new entrepreneurs is to definitely start from office space and move into your own office as your team grows. And when you do move into your own office be prepared to deal with all the responsibilities and decisions that getting your own space means.
Excellent blog. I loves the way you distinguished between office space versus work from home pros and cons. Looking forward blogs in future
Thanks 🙂
Well articulated. Keep the good work up.
Thanks for pointing out that having a rental office would keep me away from distractions when working. I’m thinking about being a full-time freelance writer and I do get in the zone to write when a certain ambiance is set around me. I hope I could find a rental office just a train station or two away from home so I wouldn’t have to venture that far.