However, as with all situations, there are disadvantages to be considered. When individuals work from their homes it becomes more difficult to separate their personal lives from their business. It takes a lot of energy and self-discipline to stay focused, and some individuals are unable to concentrate on their work in a home environment. They need the structure of a separate workplace. In addition, a home-based operation does not receive the same visibility a more formalized setting provides. Home-based operators must make an extra effort to make their business known through advertising and referrals.

There are developmental regulations pertaining to the types of businesses a person can operate out of their home, and home-based operations are usually required to obtain permission from the local municipal government before they begin operation. Sometimes, depending again on the nature of the business, customers or clients may not feel comfortable attending offices that are situated in a person's home. Easy access to a home-based business may also pose security concerns for the owner.

Leasing

Most businesses initially start out from leased premises, rather than incurring the cost of buying or building a new facility. However, the expense of leasing a premise is still a major expenditure, and all the costs associated with the lease should be carefully reviewed. Leases are usually long-term commitments, so it is important to not only look at the short-term objectives of a business venture, but also its long-term goals.

A written lease agreement can vary in length from a single page to a very lengthy and complex document. It is extremely important to remember that a lease agreement is drawn up by the property owner (the lessor). Therefore, it tends to primarily protect the owner's rights and not those of the intended user (the lessee). It is advisable for business owners to always have a lawyer review such agreements. Many intricate details are outlined in a lease and are often written in a manner that is difficult for a layperson to understand. Lawyers are able to explain the finer details, as well as any legal ramifications that are associated with the agreement.

Leased premises that are situated in an excellent location offer businesses superior growth potential. Before business owners sign a lease, they should be aware of the impact existing competitors may have on their operations. Landlords frequently stipulate the types of businesses they want to occupy their premises. One reason they do so is to ensure that these businesses are complimentary in nature, and not in direct competition with other stores or offices. Still, there can be some overlap in the products and services one business provides with that of another. A lawyer would be able to provide advice pertaining to possible conflicts and means of protecting their client's interests.

Buying a Property

Usually this costly option is not a viable one for small business owners. Yet a business may have no other option when no suitable premises are available. The business owner should gain as much information as possible regarding this type of a proposal. Legal advice regarding mortgages, land use, and building restrictions should be thoroughly examined before making a commitment of this magnitude.