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A home office is a dream of many people Putting your office in your home is a good way to save money if it doesn t cost you more than you save Home offices can have a detrimental effect on your business Some people will assume that if you work from home you are not well established and may be a risky choice as a contractor Of course, working from home doesn t mean your business is in financial trouble, but some customers are not comfortable with a company that doesn t have a commercial office space I work from home now, and I have worked from home at different times for nearly 20 years I love it I am also disciplined in my work ethic, and even though my office is in the home, it is professionally set up When clients come to my home office, it is obvious that I am a professional I will talk more about setting up a home office a little later, but remember to take your home office seriously Having an office in your home allows you to write off certain household expenses By calculating the size of
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your office as a percentage of the total square footage of your home, you can deduct a certain portion of utility costs, real-estate taxes, and mortgage payments All costs to furnish your office should be tax-deductible as well So if you are considering setting up an office in your home, you ought to talk to an accountant and find out the tax advantages and tax rules pertaining to a home office
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A commercial office can give you a commercial image This image can do a world of good for your business However, commercial office space can be expensive and add greatly to your overhead expense Before you jump into an expensive office suite, consider all aspects of your decision We will talk more about the pros and cons of commercial offices as we continue with the chapter
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Before you can decide on where to put your office, you need to assess your office needs This part of your business planning is important to the success of your business Can you imagine opening your business in an expensive office and then, say six months later, having to move out because these expenses are hurting you Not only would that situation be potentially embarrassing, it would be bad for business Once people get to know your office location, they expect it to stay there or to move up A downward move, like the scenario described, would concern people, who may think your business is not doing well, and scare off a percentage of future customers
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One of the first considerations in choosing an office is how much space you need If you are the only person in the business, you may not need a lot of office space When you consider your space requirements, take the time to sketch out your proposed office space It helps if you make the drawing to scale You can also make some templates, to scale, of a desk, chair, filing cabinets, storage shelves, and a table for a copier Move them around in the space you think you need for an office to determine whether you need more or less than you originally thought And remember to leave enough room on the scaled drawing to allow your chair to be pushed back from your desk and not hit any other furniture How many people will you meet with at any given time How many desks will be in the office I now have only a three-person office This does not
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