As we get deeper into 2021, more and more business owners and entrepreneurs are switching to home offices. They’ve been converting spare rooms, adding an extension to their houses, or working from their garage. It doesn’t matter how the conversion takes place, what matters is why home office conversion is becoming a popular approach.
Part of the reason is down to a change in times; we live in a world where remote businesses work more efficiently than ever before. But, another reason is that working from home and enjoying a home office conversion is financially more beneficial than working from a commercial office.
How is this the case?
Well, when you stop and look at the costs and savings of a home office compared to a commercial one, you can easily identify why working from home is the better option for your finances…
Zero rental costs
First and foremost, working from home gives you absolutely no rental costs to worry about at all. The only rent you will pay is the rent you might be paying for your property already. If you own your house, you’ve got zero additional payments to make. Obviously, commercial offices cost money, and they are usually rented. So, committing to a home office can save hundreds of dollars a month, or thousands of dollars a year.
No need for insurance
When working in a commercial setting, you will need all sorts of insurance coverage to protect your business. Primarily, you need small business liability insurance and workers’ comp to protect against accidents at work. The idea is that, if someone does get hurt on your premises, your insurance covers the cost of any compensation claims they make, saving you from paying out of your business accounts.
The thing is when you work from home, you won’t need this insurance. You have no employees working from your home office, so you don’t have to worry about them getting injured. Likewise, you can choose not to have clients over for meetings, calling them via Zoom, or meeting elsewhere. Even if someone does come to your home office and get injured, your home insurance typically covers public liability anyway! So, there’s no need to buy any additional insurance, saving you thousands of dollars per year once more.
Zero transportation costs
How long did it take you to commute to your old office? Some people will drive for 30 minutes or more every day, to and from work. That’s a lot of gas being used per week, month, and year. It adds up to some substantial fuel costs, but what if you take the train or bus to the office instead? Again, you can spend hundreds of dollars per year on commuting to your commercial office workplace. When you have a home office, these costs are eliminated as you simply get out of bed and walk to wherever your office is located in your home.
Fundamentally, home office conversions are increasingly popular because they are financially savvy. Business owners recognize they can save a fortune by making the switch, and their operations won’t be negatively affected. If anything, some people find that switching to a home office improves productivity and output.