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Learn Why Starting Your Business in a Home Office is More Efficient

Aug 16, 2008
When you're starting a business, and you don't have substantial levels of capital, then the chances are that you've considered whether you should start the business from home or get yourself an office. In this article we take a look at the advantages of waiting as long as possible before taking on any mortgage or rental obligation.


You'll be able to fit your work around your life far easier when you don't have to work between certain hours in the day. You'll be able to pick the hours that suit you, and possibly have an opportunity to spend more time with your family. That's why it's common for new parents to start a small business from home.


You'll be able to save money you would otherwise waste on office expenses and invest it straight back into the business when you work from home. You might be able to spend this money on advertising to drum up more sales; raise less capital and therefore limit equity dilution; or even spend the money on outsourcing certain jobs to service providers such as a bookkeeper or marketing professional. When you work at home, you will find that your business will be in a position where you've got less to lose.

Preparing For Failure

According to government statistics, 80% of UK businesses fail in their first two years. That's a lot, but it doesn't mean that yours is going to end that way. However, in the case that it does, it's best that you have as little to lose as possible, and that's why you'll be in a better position if you choose to start a home business. You will not have any contract period to worry about on your office, electricity and line rental bills that will keep coming in for years after your business has ceased to trade. Some of these issues can be addressed by the formation of a limited company, but it's still best not to have these things to worry about.

Less Travel Time

Any time you spend travelling is time you could be spending growing your business. When you work from home you'll be able to get up in the morning and start working right away if you choose. Likewise, you'll only have to walk through to the kitchen when it's time for lunch. If you can save 2 hours a day in travelling time, you've just made yourself, and your business, 25% more effective.


When you work from home you are able to assign part of your broadband, heating and other bills to your business. This works great when it comes time to pay your taxes, and you're able to offset these costs against money that your business has earned. You might also be able to complete certain purchases, like a PC that can be used by the whole family, against your business. Remember, it's always best to consult your lawyer or accountant before making any decisions about the best way to handle your taxes.
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