Is Running Your Business From Home a Good Idea?

For many business owners, starting a business from home seems like a good idea. Working from home lowers business expenses and offers a familiar work environment. However, working from home can hinder the business’ opportunity for growth. Here are a few factors to consider before deciding whether you and your business are well suited for home or the office.

What type of business are you running?

Some businesses are well suited to operate from home and others require an office or store. To determine which format of operation is best, it’s important to consider what type of business you are running. Nearly all product based businesses require a store. Coffee shops, corner stores and restaurants require a unit of operation separate from the owner’s home. The store or office of your business should be the primary work locale as the owner. Although you may not have an active role in the physical operation of your product based business as the owner, being on site helps your business. Questions from your employees can be answered directly and concerns of your customers can be treated personally. Having a store helps to advertise your business and running a product based business from home is not an effective way to sell your products. On the contrary, most service based businesses can be operated from home. This is because most services take place outside of the office. Despite this, sometimes having a store can help advertise your business and promote walk-in business.

Do you enjoy interacting with customers and employees?

Although some business can be operated from home, it’s important to consider if this matches your business model. Sometimes working from home is not an option if your business model demands highly personalized service. A business owner that strives to serve his or her customers with a personal touch should avoid working from home.  In fact, interacting with employees and customers can give business owners insights about new directions for their business.

Do you have employees?

Usually, small businesses are best operated from home and larger businesses are best operated in a store setting. This is because working from home makes it difficult to accommodate employees. Working from home is a good provisional step to make until you grow your business to a point where employees are necessary. Prior to hiring, consider investing in a store or office space for your business. Employees are easier to manage from one central location.

Do you have a family?

Having a family is often an incentive to work from home, especially for parents with young kids. This is not a good motive to run your business from home. Working in a bothersome environment reduces productivity and divides your attention. It is advisable to find a good work-family divide when running your business.

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