Advice On Moving A Home Business
To An Office Space

By Karen E. Klein, Special to The L.A. Times
August 25, 2008

Dear Karen: My home business is growing and I'm considering a move to an office space. How do I decide whether to do it?

Answer: Budget out your first-year office expenses and determine whether your revenue can keep pace. Figure in overhead, such as utilities and equipment, and personnel (you may need to hire an office manager or receptionist). Don't forget the loss of your home office tax deduction.

If the numbers look good, start with a small space and a flexible lease. Getting tied into a three- to five-year lease now, with commercial rents still falling, could be disastrous, said Sande Golgart of Regus, an outsourced office service provider. Look for a one-year lease with an "out clause" that allows you to exit early.

"Use shared resources until you're exploding at the seams," Golgart said. A building that provides communal kitchens, copy rooms and office managers is best.

This article was written by Karen E. Klein,
correspondent for the LA Times
further articles from Karen E. Klein can be found here.