Rent an office or work from home? Published: Mar 30, 2004

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Do you own an office or run your business from home? This question comes up for a lot of small companies wondering which is best. We'll take you through the benefits of each.

What are the benifits of having an office if we fully operate our business through online?

An office would be good if you have multiple employees and are a large/medium size operation. If you're just offering hosting services there is no point to having an office for clients to stop in, unless you're doing a large colo or network services. Clients usually wouldn't care where you work from, as long as their website is online.

Obviously you'll save tons of money by working at home. I have a second room in my house as a dedicated office room, fax machine, desk, filling cabinet, etc. and it works very well. If you work from home you can also write many things off like internet connection, rent, phone, and other everyday office costs.

If you're a small company with 1 or 2 people, working from home will save you lots of money that you can instead use for advertising and acquiring clients. Just take the cost of rent for an office and use that towards sales. Once you grow and expect to have many employees, have been in business for a while, have a solid business plan and real income from current clients - that's the time to get an office. Otherwise you'll end up going belly up, not being able to afford it.