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#41907 - 09/10/04 08:42 PM Moving business out of house?
Jps1006 Offline
Member

Registered: 01/22/04
Posts: 609
Loc: Northern IL
My next wish list item is to move the business out of the garage and basement (which works pretty well on a raised ranch) and into a shop. I'm a one man, one van show at the time but ultimately I want to grow. I've had employees in the past when in business with my brother. Since splitting I've had one long term employee who I got rid of a couple years ago, and lost money.

But I feel so hindered working out of my garage. right now I have the whole thing to the business except for some toddler toys, bike, and whatever left over mess from the last home improvement project. Also having the office at home kills productivity if mama and the kids are home.

I imagine increased productivity and efficiency would offset the increased expense, but I don't know if that is just imagination. The one thing I long for most is to have enough shelf space that parts piles for specific jobs can get set off to the side without getting picked through before it is time to go back. Also I'd like to sort the parts I do have. Then alot of my over buying that, and under buying this would also get under control. As it is now, I'm too unorganized to hire again.

Am I being realistic? Anyone else have any input who has made the leap? Am I thinking about doing this in the right order, or should I hire first?

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#41908 - 09/11/04 05:21 AM Re: Moving business out of house?
Joey D Offline
Member

Registered: 10/10/03
Posts: 263
Loc: Arlington MA U.S.
Sounds like you need to organize 1st. How big of a garage do you work out of? Can the office move out there? I think you need to make it work as the overhead for an office with storage for your stock would cost far more than doing this. Mazimize what you have then when you move into the bigger shop as you grow you will have a good system of operating to use

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#41909 - 09/11/04 10:26 AM Re: Moving business out of house?
Edward Offline
Member

Registered: 12/14/02
Posts: 309
Loc: California
I thought about renting a garge,office or other rooms besides the home office,but i have to pay extra rent.
What i did and am going to do once i move into my new house is dedicate one room or the garage to my business only.and only to my business. Make it into an office enviorment. Do not allow any toys,pots,pans, T.V remote, clothing anything that is related to the business get into that office.

And if you need help hire a proffesional organizer.

Good luck and keep that extra $500-$1000 rental money to yourself. Be organized and use part of your house as your office.

Edward
_________________________
Thanks
Edward

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#41910 - 09/11/04 11:39 AM Re: Moving business out of house?
George Offline
Member

Registered: 02/23/02
Posts: 380
Rent and utilities are a big part of a "real" office.

If you can work out of your garage, you save a lot of money. You might want to rent some small (5'x10') storage space for inventory.

You should see your tax advisor.

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#41911 - 09/11/04 11:51 AM Re: Moving business out of house?
MONOLITH Offline
Member

Registered: 01/04/03
Posts: 45
Loc: Pennsylvania, USA
Jps1006, don't you get to deduct a portion of your home rent/mortgage as a business expense, since you have a room dedicated as an 'office'?

As a one man shop, it would seem that the cost benefits of working out of the home would outweigh the expenses of supporting a seperate office infrastructure.

I agree with Joey D.; First learning to organize and make the most out of where you are would be the best move.

I wouldnt make the leap to supporting a seperate office until the demands of a secretary and employees etc required it.

Just my thoughts. No real useful advice is actually intended or implied.
_________________________
www.MONOLITHELECTRIC.com

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#41912 - 09/11/04 12:03 PM Re: Moving business out of house?
Active 1 Offline
Member

Registered: 02/22/03
Posts: 684
Loc: Grayslake IL, USA
I too would like to get my business stuff out of the garage. But I do like having the office at home. I don't have to drive anywhere to do paper work. With extra tools and supplies in the garage it saves me an extra trip to pick up or drop off something. Maybe in the fucture I'll build a storage shed in the back yard for the big ladders, pipe, tools, and supplies. I can't see spending the money for a shop right now. Then I would have more utilities to pay. My house is more secure then a rental shop because someone is almost always around.

The only people that come to my office work for me or want to sell me something. I don't see haveing a shop as increasing any sales. I had a few customers ask if I had a showroom. Even if you had an office with lighting, device, and other desplays I can't see it even paying for the desplays. I seen maybe 2 places around here that have an old store front on a busy street. I wonder what they get as far as walk in traffic. I knew at least one place that would list there shop and home as 2 different locations in 2 towns to get more phone book listings.

Tom

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#41913 - 09/11/04 12:07 PM Re: Moving business out of house?
MONOLITH Offline
Member

Registered: 01/04/03
Posts: 45
Loc: Pennsylvania, USA
"I knew at least one place that would list there shop and home as 2 different locations in 2 towns to get more phone book listings."

I was recently associated with a company that placed full page ads in phone books from 5 different neighboring counties. Each one said "serving your area", but gave no specific company address. With the line "30 minute emergency service", everyone assumes they are 'local'.

The advertising cost is staggering to most, but they get a large volume of calls and it's how they survived.
_________________________
www.MONOLITHELECTRIC.com

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#41914 - 09/11/04 03:23 PM Re: Moving business out of house?
Dave55 Offline
Member

Registered: 05/08/04
Posts: 666
Loc: Crystal Lake, Illinois, USA
I've been doing business out of my home for twenty years now. I have my office in a bedroom, and a one car garage. I have many shelves and a workbench in the garage. Consider having minimal stock on hand and ordering materials for the contracts you get. Having extremely low overhead is great during the slow times, and when it's busy the money goes in your pocket, not the overhead.

I haven't advertised in years, but I felt I needed to in the beginning to build a customer base. As in any business, treat your customers right and they'll tell their friends.

Dave

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#41915 - 09/11/04 03:24 PM Re: Moving business out of house?
Dave55 Offline
Member

Registered: 05/08/04
Posts: 666
Loc: Crystal Lake, Illinois, USA
By the way, from your first post....Did you lose money when you had a guy, or because you got rid of him???

Dave

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#41916 - 09/11/04 09:02 PM Re: Moving business out of house?
Jps1006 Offline
Member

Registered: 01/22/04
Posts: 609
Loc: Northern IL
Thanks for the replies.

I was losing money with the employee so I got rid of him. My biggest mistake was keeping him busy 40 hrs even if it wasn't productive. Also, I should have had another truck for him to work out of, that would have helped.

For the tax deduction, it works out great. The whole lower level of the house is the business. It might sound hard to believe, but if you saw the house you'd understand. The garage is 2-car.

I kind of need the other half of my house back. Girl # 2 arrived last month, and it won't be long until I wish my office was a playroom.

I value the responses so far, but I'd be curious to hear from someone who once had the shop at home, and then moved it. What were you're curcumstances and how did you know it was time?

Thanks guys

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