It is estimated that, in 2020, the number of businesses in the UK’s private sector grew by 113,000. Meanwhile, small and medium-sized enterprises (SMEs) account for 99% of all businesses in the EU. To be classed as a small business, a company must have fewer than 49 employees. Especially for those companies on the smaller end of that scale, this then begs the question of whether a small business should be run from home or instead from a dedicated office space.
This is a particularly modern conundrum, as advances in technology make it easier than ever before to work from wherever suits you. However, these needs depend on your business, as every business and entrepreneur can differ in their requirements.
Here are the pros and cons of working from home versus investing in a dedicated office space for your small business.
Home office: pros
When you first start up your business and are a sole trader, working from a home office can be cost-effective. There is no need to pay any rent, while there is also no costly commute.
In fact, as highlighted by the continued widespread practice of working from home during the pandemic, you might be able to run your business with as little as a laptop and Wi-Fi if needs must.
Home office: cons
On the other hand, though this might be effective for sole entrepreneurs and relatively new start-ups, running a business from home might not be effective in the long run. Yes, it might save you money now, but you could have to invest more at a later point when your company begins to expand.
You could also struggle to effectively balance your home and work life when working from home, meaning more frequent distractions and potentially more stress.
Dedicated office: pros
If your business requires you to meet face-to-face with clients, then you simply must consider a dedicated office space, as you will want to convey a professional image. A business which hosts customers and clients in a dedicated office rather than a residential property will always appear more credible.
If you think your business might be too small for you to warrant renting an office, then there are plenty of options for you, such as renting serviced offices. A serviced office is, put simply, a pay-as-you-go office space which is fully furnished and comes with other pay-as-you-use features such as conference rooms.
Serviced offices are a more flexible option for entrepreneurs eager to keep a sense of freedom and fluidity with their small business. As a serviced office will come fully equipped even with the likes of security and coffee machines, you could easily expand or downsize depending on your needs.
Dedicated office: cons
As mentioned earlier, renting an office space may become expensive if you don’t find the right solution for your company. This is because, if you don’t opt for serviced offices, you will have to pay for rent, utilities, furniture and equipment.
Only you can make the final decision of what is best for your business. However, if you want to continue expanding your small business, you should definitely consider investing in a dedicated office space, such as a serviced office.