Moving the Business Home

[Joe Pelonio]

I know a lot of people start their business at home "on the side" then go out and lease a shop when they build up some clientel. I also know that many on this forum have their shops at home. Anyone go from leased shop to home?

After 13 years I have made the decision to move my sign/laser business to my home in the near future. The landlord asked if I was going to renew my lease which is in the last year (of 5) and I had been studying the advantages/disadvantages so told him no. Since he has had interest in a space like mine I told him that if he found a new tenant and would start a new lease for them (no sub) that I would go in 30 days after notice.

My youngest will be off to college in the fall. I have the "bonus room" over the garage which is 2-car garage size except for a stairwell to use, plus the garage itself for the woodworking/cutting substrates.

At the very least I'd save $2,200/mo rent, + utilities, garbage, commute time (60-90 min/day)/costs/gas. My biggest customers would be fine with me delivering once a week to their nearest location, I'm doing more internet/shipped sales now, and the City I'm in has confirmed that I have no zoning problems. Another advantage is losing the customers that come in off the street and take a lot of time for a very small job, over an average month those take a significant amount of time but are not enough revenue to justify the rent.

Since I have made the committment it's too late but I still thought I'd check and see if anyone can suggest things I hadn't thought of and/or
their experience and how it worked out.

[Randall Woolbright]

Good move, Joe. I'm self-employed for 15 years working out of the home. Tried a leased shop for 2 years a while back and that was a real eye-opener. Was very glad I didn't have a longer lease. Never generated any additional business to justify it. Wrote it off to experience. I feel for folks with $2 to 4k in store rent plus all the other overhead expenses to meet. Got to love that commute too. Nothing like fresh coffee and walking downstairs to go to work.

[Brett Baldwin]

I can't offer an experienced opinion but if walk-in business isn't a plus factor and everything else checks out as far as running your business at your home, it sounds like you'd be saving a big chunk of money by making this switch. Have you checked with your insurance company to see what coverage at your house would cost you? Would you have to do anything special as far as electricity for running a business out of your house? Is shipping pickup available since you indicated internet sales are important. Just some things that came to my mind that I didn't see you address in the thread.

[Jim Becker]

I think your plan sounds good, Joe. You have a dedicated space that you can walk away from at the end of the day while still having tax advantages, you have local clientel who will do business with you no matter where you are and a growing "remote" business revenue flow and you have no jurisdictional issues. You also have the opportunity to "fire" some of the customers whom it doesn't pay to do business with...

Brett does bring up a good point, but an experience independent insurance agent will be able to take care of your needs to protect your home and business as well as your family. Shipping shouldn't be an issue...I know UPS allows business pickup accounts for home-based businesses and suspect there is no issue with other carriers, either...it's quite common these days.

Although I don't have my own business, I have had my office at home for over 9 years now and it's great. The commute is easy..."back stairs or front". :)

Best wishes on your move!

[Joe Pelonio]

Have you checked with your insurance company to see what coverage at your house would cost you? Would you have to do anything special as far as electricity for running a business out of your house? Is shipping pickup available since you indicated internet sales are important. Just some things that came to my mind that I didn't see you address in the thread.
Randall,
I'm looking forward to that but in my case it will be taking the coffee to work upstairs.

Brett,

My insurance agent says that I'll still need the business insurance but it will cost me less since I no longer have to name the landlord as an additional insured, and because my equipment is not left alone all night.
The most electricity I'll use is the 45 watt laser and exhaust fan, plotter and 2-3 computers, not significant, and home rates are lower than business rates. UPS is often in my area for pickup or deliveries but there's also a shipping store less than a mile away where I can drop off.

[Andy Hoyt]

Good move Joe. I've been doing my thing out of my home based shop for several years and love it. I get more work done in less time and have no regrets.

One heads up though. This may be a local thing for me, but...

Even though I have accounts with both entities, neither FedEx nor UPS will pick up a shipment from me unless it is intended to travel faster than "ground service". It may be this way since our location is a bit rural. Once I figured out the parameters it has become an easy thing to work with.

[Lee DeRaud]

Everybody has covered the big issues...
One small one: have you figured out how to vent the laser so it doesn't annoy your neighbors? Probably not a showstopper, but it may affect the layout of your new "office".

[Doug Jones from Oregon]

My experience with the shipping services is: they will not setup a pickup account unless you have a seperate entrance to your business. When my shop was at home, many years ago, I qualified because I was in a detached shop with seperate entrance.

Also, if you drop off packages at a local shipping point, even if you have an account, you and or your client pays counter rates. Of course, you don't get to pay the sliding scale pickup fee.

One other small thing to consider. Your inbound supplies will be considered a residential delivery with your move home....again, a higher rate. I'm sure these differences will not come near the savings though.

If I could, I would!

Doug

[Joe Pelonio]

Lee,

No problema on the laser vent. It's a corner lot, 1/3 acre, and up stairs. Where I will vent it on the side of the house faces the street, with 2 80-100 foot firs blocking view of smoke or debris coming out. The closest house will be 50+ feet away and that's their garage.

As for shipping, most of my deliveries will be local supply vendors that have already said they will continue to deliver free daily. UPS incoming
we get now, they will leave it on the porch if no one home in our area. Outgoing pickups (have UPS account) will not be used much and I have confirmed with the shipping place that I will not be charged for UPS dropoff that's all ready to go and labeled. In fact I will be talking to him about being a wholesale buyer from me to sell engraved name badges and desk plates. If I do have it picked up I'll just pay the $3 extra charge, rather than try for a daily pickup.

[Steve Clardy]

My shop is here at home.
Overhead is almost nothing. Commute to work, just wear out a pair of shoes once in a while.
I'm off the beaten path, so I rarely get walk in customers.
Word of mouth is what I depend on, and I stay busy.