Not all businesses require a storefront but every business does require an office, even those run by one or two people who conduct the majority of their business either online or at customers locations. While there are many arguments made in favor of renting an office space, usually by real estate agents handling the rent, they often ignore the three main reasons that renting an office space is a bad idea.

First of all is the cost. An office in the home can be carved out of your current digs and except perhaps the cost of an extra phone or fax line, you already have the space available. Second is the need to travel to work everyday. While a home office can be stingy with space, there is no daily commute. Lastly, when you are out visiting customers, potential business will not be turned away when they arrive at your rented office and find no one there.

Unless your business requires a showroom or is retail based, you probably have no real reason when starting out to consider renting office space. Even with a few employees, the work can be done at home through telecommuting and many people enjoy that type of arrangement. The costs of office space goes beyond the monthly rent as you will be paying utilities, liability insurance and security. Moving all of your equipment into the new space will take time and money and then there is the subject of the rental terms.

Few office spaces are rented on a month to month contract and regardless of the condition of your business finances the rent will be due. While it may give your ego a boost to have your own office, it can also put a huge dent in your wallet if the business does not require a separate space. Working from your home has many pitfalls such as constant interruptions by family and friends as well as the need to keep up with the laundry and housework.

It takes a large amount of self discipline to realize you are at work when working in your home office. However, being able to get up in the morning, dress for work and walk across the hall to your home office can save gas and frustration from the daily commute. If all of your work can be done from home, you may even consider whether you really need a vehicle and its monthly payment and insurance costs. If another member of the household has a vehicle you can use when needed, the second car would only be necessary if driving to the rented office space.

When you hang a shingle over a door people assume you are open for business. In the middle of the day if you are unavailable they may assume you went out of business. However, being accessible by phone, fax or email your customers know how to reach you and when you are working.