Entrepreneurs are in a position where they have to think about the value of renting out an office or working from the comfort of their own homes. There are advantages and disadvantages to each, but an increasing number of entrepreneurs are working from home because they believe it positions them for success.
This guide is going to go into some of the reasons why more and more entrepreneurs are shunning the idea of having an office.
The Move Overseas
The digital nomad movement is growing in strength, with one in three Americans considering going overseas. This is where entrepreneurs are not only working from home but they are working overseas. There are a lot of reasons why moving overseas can be a great option for young entrepreneurs, including:
For these people, there's no chance of having a permanent office. Work can be done from anywhere due to the power of the Internet. There are digital nomads who will work from a beach or from a lodge overlooking the sea. Not having an office can give you the flexibility to be absolutely anywhere in the world.
It Doesn't Cost as Much
The fact is in this day and age rental space is expensive. No matter where you happen to be in the US, you are going to lose hundreds of dollars every month by having an office. For many entrepreneurs and startups, this is unacceptable and risks bringing down the fragile success they have achieved.
By staying at home you don't have to pay out anything more than the cost of electricity, the Internet, and some new furniture.
In a lot of cases, you can even claim back this money as part of your tax returns. You do have to be careful with what you claim because the IRS is really clamping down on expenses in relation to home offices.
For most people, the idea of having an office is one of tradition and prestige. Many entrepreneurs have dreamed about working out of an office because that's what they were always brought up to do. It was the idea of success, and that's why they are willing to spend hundreds of dollars every month just to sit behind a desk.
Yet in many cases there's no point to actually having an office. If you work online and you never have clients coming into the office there's little reason to actually have that office. When something is unnecessary, it makes sense to get rid of it, particularly when you are running a startup where every dollar counts.
In the case of many people, productivity actually gets better when working from home. Studies have shown that most people feel more productive when working from home. Currently 80% of workers are more productive this way. It could come about due to a number of reasons, such as the feeling of comfort, the ability to work where you like, and the ability to work whenever you like.
Flexibility can lead to more productivity because you are only working when you absolutely want to and when you absolutely have to. You don't have to worry about when you show up or looking presentable. It's true that many entrepreneurs will even go to work without getting out of bed.
Live a Better Work Life Balance
It's true that millennials and the next generations are increasingly valuing the power of a good work life balance above all else. One of the main reasons entrepreneurs are opting out of offices is so they can spend more with the kids at home. Since they are always at home, they can take care of their families and they don't have to worry about potentially missing out on their kids growing up.
A better work life balance can pay dividends in the long-term. There are a lot of mental health benefits by always being in your so-called happy place.
Does this Mean that You Should Abandon the Office Life?
There are advantages to working out of an office, as well. Working in a more social environment and welcoming clients into a professional environment are two of the big advantages of having an office. It really depends on the type of business you are operating here.
When it comes to the office life or working from home, you have to make the right decision for you. Where do you prefer to work?