Home Office VS Leased Office Space. Why Not Stay Home?

Attractive young woman working from home
What comes to mind when we think of a business that we are managing by sitting at home or from an office based on our home premises? We think of the coffee breaks in the backyard or going to 5-10 minutes breaks in our bedrooms lying on our beds. We think of cushions in the lounge and relaxing in between times of work. We can have fresh, home-made dinners and relaxing time in between without going out in heavy traffic during peak hours. All of these sound luxurious in today’s era, especially if you are running a business somewhere far from your home and have a lot of traveling each day. This also sounds very appealing if you are managing family and kids on top of work duties. Sometimes, this idea makes sense. Stay home if you have obvious reasons for being there and managing your office work from home is palpable. Stay home if you just have started a business and have not earned enough income to pay for a leased office space. But, knowing how to decide which option makes more sense is very important to know for all small business owners/entrepreneurs.

Consider This:

If you just have started a micro-level business and it will grow slowly, you can start it from home. But, in making the decision to stay home or go for a leased office space, ask yourself these questions:

Can you bear the interruptions if you are working from home?

Can you manage the isolation during working hours if you are living in an independent suite not shared by any of your family members or friends?

Do you mind your clients coming to your personal address? Do you want to mix your clients with your personal environment?

Are you planning to grow your business and hire more people? This will also require more space and furnishing according to the requirement of an office.

If your business is growing already and more space is required for the employees, storage, and equipment, you definitely need a leased office space now.

Leased office space

Leasing an office is a very good option if it is in an area with low rent and near to your home. Leasing an office means the property is not yours and you are not tied up to the place. If you are not getting good business in the area, you can easily lease space in another area with more business growth options and potential customers.

The cons of leasing an office will leave you bearing an additional payment for rent as well as possible rent increases that you cannot control.  Also, the leased office space will not be considered an equity to your business.


Working from home

The best thing about a home-based office is that you are not going to pay for an additional place for your newly started small business that has to yet to prove it’s worth. You do not have to pay monthly or annual rent for a leased office space.
Your business is new and customers may take up to 30-90 days to pay you and, in the meanwhile, you will need to get a loan for the rent of leased office space if you choose to go that route.

A home-based office means low overhead costs. You can outsource service providers for your business without hiring them. For new businesses, there’s another tax-driven advantage to starting out of your home. The IRS allows home-based small business owners to deduct a proportionate part of home expenses off of their taxes.


Staying home and running a home-based office is not only beneficial in terms of having tea or coffee breaks in your home backyard. It has many potential benefits for new small business owners. Go for a home-based office over a leased- office space, if it is right for you.

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