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Advantages and Disadvantages of Running Your Office from Home

Updated on February 21, 2014

If you have been thinking of running your office from home, you might as well weigh advantages and disadvantages of running your business from home. Home based business offers several advantages like cost, time freedom, and scalability. In other words for lesser cost, you can not only scale up your business but also access more time at your disposal. There are nonetheless, some disadvantages as well. You not only feel the lack of office atmosphere but also isolated. Additionally, home is not the place to hold business meetings. Personal relationships are also impacted if you work in your home.


Advantages of home based business

However, for a start up company, home can be the ideal place to begin with because costs of setting up a commercial office could be an intimidating prospect for them. Moreover, you also get to save office expenses for you have no office rent to pay as you were already paying the mortgage. You save a fortune while working from home which includes savings on gas, lower food bill, electricity tariff at lower rate, parking costs and so on. If you include all the savings, you appear to have a huge advantage.


Yet another advantage of working from a home office as already identified above is scalability. All available space in your house is yours to use, whether you need to hire more employees or fire some of them. On the contrary, in a commercial space you keep worrying over how to optimize the space. You may not expand if you've limited commercial space. Similarly, if a part of the commercial space is unused, you worry over the having to pay more for something that you don't need. These are not the typical issues or concerns when you work from home.


While these are some of the big advantages of running your business from home, the biggest advantage is the time flexibility you have. If you have to attend to some issues you can give your time if you're working from home. You can take break from work whenever you want. Overall you remain less stressed and cheerful, and consequently more productive. You save time in commuting two ways to office. You can work according to your convenience, that is if you want to work late, you have the freedom. Time freedom makes you effective with better outcomes. These are some of the unique advantages of working from home.


Disadvantages of home based business

Despite some of the unique advantages of working from home, there are disadvantages that cannot be helped. If you work from home, you are working in absolute anonymity and isolation with no friends or colleagues, supervisors, and other staff to interact with. Working longtime in isolation can be distressing for some people, if not for everyone. You have no one to socialize with and no one to talk to. It is important to understand that man is not a machine and if devoid of social contact for long, some people might reach breaking point sooner or later.

Working from a home office makes you appear less professional. The clients or other people coming to meet you may not take a very positive attitude when they find you working from home. You might worry over losing your business or few valauble clients. On the other hand when you work from a rented commercial space you appear professional. You may leave a positive impression upon the visitors. No professional wants to appear unprofessional. This may have psychological impact in the form of status ambiguity which may eventually leave you less confident.


While working from home, you may not be able to resolve the issue of boundaries in context of personal relationships. People may forget that you are doing a serious work and do not want to be disturbed. They may presume you're surfing, chatting, or having fun, so they may not give a second thought in engaging with you or intervening while you are working. While commercial office creates a separate and personal space for you, the same space gets blurred when working from home. The others may not even realize that they are taking away your time which is extremely valuable for you.



Considering the pros and cons of working from home based office, it is evident that what is convenient for some people may not be so for the others. While working from office saves your time and money, it can be distressing for people who cannot remain isolated for days. Yet for some people it can be de-stressor. It may make them more productive, and efficient. They may be able to save money. However, if working from home begins to negatively impact on your productivity and professionalism, the option to shift to commercial space must be kept open.

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    • A_K profile imageAUTHOR

      Ajit Kumar Jha 

      5 years ago from Delhi

      Thank you CarNoobz. I can understand it.

    • CarNoobz profile image

      CarNoobz 

      5 years ago from USA

      Voted useful, A K

      I work from home, and I'm definitely feeling those cons. The distractions are endless...

      But then I remember the pros. I can take my kids to appointments. I can give my wife a break when she needs it. I like it!

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