The best location for your business

The location of your business is one of the most important decisions you will make! A lotOffice for rent of people start out as a home based business and then as the business grows they move to a commercial location.

Working from home isn’t for everyone.  You have to be self-disciplined, motivated and good with time management and your family has to remember that even though you are sitting in the next room, you are working.

When determining whether you should have a home-based business or use a commercial location it is important to look at some of the advantages and disadvantages of each and apply them to the type of business you would like to run.

 

  Home-based business Commercial location
Pros
  • Convenient
  • Lower operating costs
  • Tax advantages — can write off a percentage of home expenses

· You can set your own hours (depending on your service) – no constraints

  • No commute
  • You can wear your slippers all day long.
  • Creates more visibility for your business
  • More space to grow
  • Can add a more professional look for the business
  • The business appears to be more established
  • Signage
Cons
  • Can have distractions— may be hard to stay focused
  • May not look as professional
  • May not have room to grow and expand your business
  • Clients know where you are and can visit at any time
  • May feel isolated and out of the loop
  • Can be challenging to set boundaries between personal/business life
  • Signing a lease or rental agreement can mean a 2 – 5 year commitment
  • More overhead expenses
  • Will have to commute
  • You must adhere to a schedule of when your business is open and closed

There are benefits to both options.  What you need to ask yourself is what option is right for you.  A lot depends on the type of business you are in.  There are some entrepreneurs who are able to create a professional business atmosphere in their home whereas others have found it difficult.  You need to do your research.

Considering a commercial space? Ask these questions:

  • Do we really need to move?
  • Does the new location complement our business services and/or product?
  • Who will be our business neighbours and what kind of reputation does this area have?
  • Will this move allow us to service our clients better?
  • Is subleasing possible
  • Will this move affect our budget and do we have enough cash flow for extra unexpected expenses?
  • Have we talked to others and received outside professional advice before finalizing our decision?
  • How long will the lease/rent agreement be for and will we be guaranteeing it personally?
  • Do we have the marketing budget to promote the new location?

One of the goals of the Centre is to empower small and medium-sized enterprises and give you the tools to achieve success.  For more information about resources, services, business events and seminars, contact us by dialing 311, 1-866-442-5866, online at haltonsmallbusiness.ca, by email at smallbusiness@halton.ca or visit us at 1151 Bronte Road, Oakville.

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This entry was posted in Economic Development, Halton Small Business Centre, Small Business Advice, Tips and Advice, Uncategorized and tagged , , , , , , , . Bookmark the permalink.

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