How to make your home-office relocation a reality
By Jenny C. McCune • Bankrate.com

Many small businesses start in the home. It's cheap and convenient. But sooner or later, the time may come to leave home sweet home for a commercial space.

For some business owners, the decision is made when the corporate refugee discovers distractions at home hamper work. "They find that they are not motivated when they are in their home. There's yard work, the house, the not having people around," says Gene Fairbrother, president of MBA Consulting Inc., a small-business consulting firm in Coppell, Tex. "They're just not as productive as they used to be."

For others, as the business grows, its needs can't be easily met out of the spare bedroom. "One day you wake up to see 10 people working in your home and you can't get into the kitchen to make lunch because your kitchen is now your telemarketing department," Fairbrother says.

And a small business can end up in the business twilight zone when it comes to local ordinances and zoning regulations. "Maybe your area doesn't allow employees or client visitation," says Fairbrother, "or the UPS truck pulling up in front of your house every day is starting to bother the neighbors."

"If being home-based is hampering the growth of your business or it is viewed as a stigma in your profession or your particular area, you may need to find more professional space," says Marcia Layton Turner, author of "The Unofficial Guide to Starting a Small Business."

Whatever the reason, when you do decide to move from your home, you need to be as professional about relocating as you are in running your business.

Office-space shopping list
Before you go shopping for space, first determine your budget, Fairbrother says. "Figure out how much you can afford before you start looking," the business consultant says.

Also determine what amenities you need. For example, do you just need a simple office or do you need space to meet with clients? And how much space overall does your business need?

Most home-based businesses moving into commercial space for the first time need to cut corners and find the cheapest space they can. One great way to find low-cost space is to network with fellow business owners.

When you attend a local Chamber of Commerce meeting, don't just introduce yourself, but explain your need for space. "Let people know," Fairbrother says. Ask your business comrades if they have any excess space or know of any space in their building.

Explore office options
A great option for many emerging businesses is to hook up with a company that has excess office space. Just be sure that the company you'll be subletting from is in a complementary business.

"If you're a business consultant that will have client visits, you won't want to take excess space in an irrigation manufacturer's warehouse," Fairbrother notes. By comparison, partnering with a law firm, CPA, or other professional firm could well be a good fit for a consultant.

Office or executive suites are another option. These suites rent you an office and then you share support services (copier, conference room, receptionist) with other tenants. Just check prices before you sign on the dotted line, Turner says. "Prices can really vary," she says.

Moving into an incubator can be another way to save money on space. You'll need to see what the incubator's requirements are -- some may focus on high-tech and won't want a professional service firm as a tenant -- and whether it has a time limit for tenants, Turner says. In addition, some incubators, in exchange for low-cost space and other services, may require an equity investment in your firm, something you may not be willing to give.

When negotiating a lease, tried to get as flexible terms as you can since a small business' needs can be hard to predict and can change on short notice. Don't sign up for a 1,500-square-foot space when you only need 800 square feet, Fairbrother warns.

Finally, don't be afraid that you can't go home again. After moving into commercial space for a couple of years, Turner moved back into her home.

"I decided to have a child and I didn't want to drive to the office every day," she says. "I needed flexibility and having the business in the home gave me that."

Jenny C. McCune is a contributing editor based in Montana.

-- Posted: Dec. 31, 2001