One of the biggest benefits of the Internet has been the fact that anyone can start their own ecommerce business. This has coincided with a dramatic increase in the number of people working from home. According to a report from the Census Bureau, there’s been a massive 4.2 million increase the number of home-based workers between 1997 and 2010. There are a number of advantages to this approach, but can it work for all kinds of businesses? Read on to find out more.
Pros and Cons of Working from Home
Perhaps the main benefit of working from home is the fact that there’s no commute. On average, we spend $2,600 travelling to work every year so eliminating this can have a significant effect on your bank balance. Under certain circumstances, individuals who work from home are also able to deduct a portion of their mortgage, utilities, and technology services from their taxes.
However, operating from your own home is a different kind of working environment than a traditional office space. You’ll need to be the type of person who can reliably stick to their own schedule and avoid the many distractions that no doubt little your house. For some, this is easy and they end up being more efficient than ever before. Many others, though, end up failing to make the transition effectively.
Pros and Cons of Renting Office Space
On the other hand, being able to work in a dedicated office space removes many of these temptations. It also enables you to more effectively work as a team. While virtual solutions have come a long way, face-to-face brainstorming sessions will almost always prevail. Lastly, while driving to an office is an inconvenience, it does enable you to create clear boundaries between your personal and professional lives. This is often neglected when making your decision.
The main drawback for renting is the additional expense. Not only in the aforementioned cost of travel, but also the property itself. Depending on where you’re based, this can be significant. In Atlanta, for instance, the average monthly rent for a square foot of office space is just $1.74. In New York City, it’s over three times as much at $6.16. If you need the extra space, consider working with a realtor who specializes in commercial property like GVA.
Each approach has it’s own set of advantages and disadvantages. Which one is best for you will be highly dependent on the kind of business you operate, and the stage of development that you find yourself in.