Some entrepreneurs find running a home-based business works exceptionally well for them, while others do much better at an office located somewhere other than where they live.

Operating a business from home offers small business owners some notable advantages—and some considerable disadvantages, as well.

Some entrepreneurs find running a home-based business works exceptionally well for them, while others do much better at an office located somewhere other than where they live.

Consider the following pros and cons before you decide whether to build your business from the home front or work from a different office location.

The Perks Of A Home Office

• Flexible work schedule

Working from home often gives you more control over your schedule. You generally have more freedom to take time off during the day and then pick up the slack by working at night or early in the morning.

• More productive time

Without having to waste minutes or hours driving to and from an office, you have more time to get your work done. You can jump right into the tasks at hand—without worrying about shaving or fixing your makeup and hair.

• Fewer distractions

You have more control over your surroundings (with some exceptions as noted below), which ultimately can result in less stress and more peace and quiet to do what you need to accomplish.

• More cost effective than an office elsewhere

When you work from home, you don’t have to budget for office rent. You’ll also save on fuel costs because you don't have a commute.

• Lower wardrobe costs

Depending on your type of work, you may not need to keep as extensive of a professional wardrobe than you would if you had an office outside of your home. 

• Less food and beverage spending

Coffee at home is far less expensive than hitting the drive-thru on the way to the office. You will be less inclined to eat out for lunch, too. 

• Home office deduction on your income tax return

Depending on your business legal structure, you may be able to report a portion of your electric bill, heating expenses, etc. as a tax deduction. That means more money in your pocket and less to Uncle Sam.

The Pitfalls Of A Home Office

• Difficulty stepping away

You may find it tough to separate yourself from your work when your office is just a few footfalls away at all times. There's always the lure of unfinished business tasks during your downtime. Unable to escape for some mental rest and relaxation, you could end up burned out and overwhelmed.

• Potentially more distractions

If you can't block out an overgrown lawn or piles of laundry from your mind, you may find working at home a not-so-productive work environment. 

• Feelings of isolation

Working from home generally doesn't provide as many opportunities for social interaction as working at an office. If you thrive on ambiant noise and conversations throughout the day, you may feel lonely in a home office.