A home office is not always the haven it’s cracked up to be.
Sure, working at home allows you to spend more time with the family and to dress in a tank top and flip-flops when the mood strikes. But it can also be a solitary existence and one that requires a level of self-discipline not every entrepreneur possesses. Even the presumed benefit of greater family involvement is not without its potential downside.
And where the SOHO (small office/home office) operator does have the personal make-up required to succeed at home, the business itself may not be suited to the arrangement.
In some cases none of this becomes an issue because the home office is never seen as anything but a temporary solution, a refuge where the business can be built without having precious cash flow diverted to office rent and utilities. The business owner keeps a careful eye on the books and when the numbers reflect sufficient strength makes the move to a standalone office.
For the lifestyle crowd, though, the decision to relocate an office is a much tougher call, because in these cases home is very much where the heart is. Still, it’s a decision that sometimes can’t be avoided.
Herewith seven signs that it may be time to say so long to the home office:
1. In your gut you know it’s wrong. You can enter the SOHO world thinking it’s right for you only to discover that it’s not. Some people find they “still miss the suit and even the ritual of the commute,” says Jeff Zbar, a SOHO consultant and author based in south Florida. In such cases the entrepreneur should look for an unused desk at a friend’s office or consider a spot in an executive suite, which Zbar favors because of the “built-in camaraderie and support” it provides.
2. Family life begins to suffer. “You start to see a problem when family members say you’re spending more time on business than you are with them,” says Jerry Osteryoung, who as executive director of the Jim Moran Institute for Global Entrepreneurship at Florida State University has counseled hundreds of entrepreneurs in the north Florida/south Georgia region. If the spouse inquires, somewhat icily, “Are you home or are you working?” there likely is a problem.
3. Business begins to suffer. If a clear demilitarized zone cannot be established between the office and the rest of the home, Zbar says, family matters will begin to intrude on business. “If I can’t separate the family from the home office, or find a balance, then it may be time to move up and out,” he adds. Remember, family life is a fluid, evolving thing, and even if you don’t have a problem today, you may tomorrow as children are added or grow and demand more time and attention.
4. Staff is required on-site for the business to grow. Generally it’s a bad idea to bring workers into the home because of the likely disruption to family life, Osteryoung says. Moreover, residential codes in some municipalities prohibit outside workers in the home.
5. The office must be able accommodate client meetings. Nothing says “unprofessional” like a stroll through a dirty kitchen on the way to the home office. It’s best if clients think of your office as a place of business only, even if you don’t.
6. There is a need to store product. Businesses that make and sell, or resell, products often find themselves struggling with this requirement. For a time, a spare room or the garage may provide adequate storage but then fulfillment outstrips space and an additional facility must be found. While there’s nothing to say that you can’t rent needed storage space outside the home while still maintaining the home office, sometimes it makes sense to combine the two.
7. Business operations violate municipal codes. In addition to prohibitions against employees in the home, you may find your business is generating a level of commercial activity not permitted in your residential neighborhood. Something as seemingly innocuous as frequent UPS or FedEx deliveries are forbidden in some jurisdictions, and if you’ve reached the point where you need to accommodate deliveries via 18-wheel truck, well, it’s probably time to look for a new office.
Entrepreneurs who do give up their home offices, for whatever reason, should keep in mind that they may face contingencies they avoided by being at home. Relocating to a standalone office entails a whole raft of new expenses, so it’s important to have a cash reserve on hand sufficient to cover them during slack periods.
And remember, the hassle of office relocation potentially can be avoided if you’re honest with yourself early on and recognize that either you or your business isn’t a good SOHO candidate.
