If you’ve decided to start your own business, you might be strongly considering doing it from your home. There are certainly some cost savings in choosing that option in comparison to renting a commercial space, but there are numerous other advantages as well. At the same time, there are disadvantages that you might also want to consider, so let’s a take a look at both the pros the cons of running a business out of your home.

Some Advantages Worthy of Mentioning

As mentioned already, there are often substantial costs savings involved with running a business out of your home. You do not have rent to incur, and the utilities are generally incorporated into your typical household budget. You also save on such items as Internet, as most homeowners already pay for this to begin with. That means that you will not have a separate Internet bill coming your way that you would have if you rented a commercial office space.


There are also substantial costs savings associated with commuting. Most Americans drive an average of 15-20 miles each way to the office, sometimes more. This can amount to quite a gas bill each month, and you will notice an immediate savings when switching to a home office. Also, there is a time savings factor that must be considered here as well. Time spent commuting is time wasted, unless you are in an area with great public transportation systems. You can now use this time to get some additional work done at home, or to finish your work in less time, meaning more opportunities to do activities with family and friends.

Do not forget the tax advantages of having a home office. This is typically associated with a sole proprietorship, and the savings on your tax bill can be enormous. You can deduct the portion of your home that you use as an office, in addition to a part of other expenses, such as Internet and telephone. You are also able to deduct other items, such as mileage when driving to meet clients and conducting work-related business, whereas you could not deduct this expense for commuting to work.

Some Disadvantages of Having a Home Office

Let us not forget that there are some disadvantages to working out of the home that must be overcome as well. If you have a business where you receive clients, many do not perceive a home office as being a professional enough of a venue in which to meet you. In addition, you will need to check about the legalities in your area of being able to run an office for your home that requires customers or clients to come and see you.


Keep in mind that there are distractions taking place that would not happen in a traditional office environment, such as dealing with the temptation to watch television, or to play with the children, when you should be working. These can each be overcome with focus and dedication; however, do not keep them from allowing you to enjoy the flexibility that working from home can bring you.