Idea for My Business

[Juniper]

This is an idea I've bounced around in my head for about a year now. Tell me if I'm crazy or foolish, or maybe it'd be a nice idea after all.

As I've said, along with going to college, I work at home as a freelance copywriter. Been doing that for about 3 years now, been doing other freelance writing for about 10. I have a little office of my own in the basement. It's dark and dreary. Hubby says he's going to convert our 2-car garage into an office for me and build us another garage somewhere else - this is a good idea as it would solve some of our house's structural problems (weak support beams) but who knows when it'll get done. And sometimes working at home isn't all it's cracked up to be anyhow. Too many distractions, too many people who think that if you "work from home" that means you're available all day for whatever else they have in mind.

So I started thinking it might be nice to get me an office someplace else and actually Go To Work. Someplace close. Someplace where I could physically "hang out my shingle" as a brick & mortar business location, to receive clients (though mostly I work online with out of town clients, now), and maybe even actually hire an employee to handle the office admin stuff one day. I hate office admin stuff.

The work IS there, the potential IS there, if I can devote full time to it in a day instead of a couple hours after the kids are in bed, and a few sessions in between laundry and mopping, you know? And now that my family is getting used to the idea of me not being home all day, while I am attending classes, maybe working all day and then not having homework at night would be a relief instead of a nasty shock, KWIM?

SO. I live in this cute little town with a mile-long strip of historical buildings, dating circa 1820-1880, many with brass historical markers and plaques. This section is literally two minutes' drive from my house.

I was thinking it might be cool to buy one of those 1880's houses on Main Street, use it for an office. If the place I buy has a storefront, I could sell writing-related stuff like stationery, cool pens, journals, etc., maybe have poetry readings and writing workshops along with my regular copywriting business.

Here's a picture of one of the houses currently for sale, priced at $143K:

(the color's a bit off, but it's a cute place.)

I know real estate is an iffy investment right now, but this is main street, an affluent town, so I think it's pretty safe.

Anyhow I can't do it till I finish that degree...but it's a fun thing to think about.

I suppose it'd be wise to rent an office space somewhere on Main Street first to see if it works out - there's always a spot somewhere.

What do you think?

[xoxoxoBruce]

You're crazy or foolish.

It could work, if the increase in productivity offset the cost. The store would be one way, except if people come in when you're on a roll, or up against a deadline. If it was busy enough you could hire somebody to handle the store sales and be your office manager too.

Owning the building means maintenance, taxes, insurance, utilities, and incidental costs. A brick and mortar business, even without the store, means business permits and taxes... and you lose the home office tax deduction.

You could also hole up in the second floor, and rent out the first floor to someone to run their own business.


But Merc says, when Obama gets elected he's going to drive all the small businesses into the poor house.

[Undertoad]

It sounds like rationalization or pipe dream to me. I've been there - I rented space in a house, rather than buying it, but it was still just a bad idea which led me down a path of failure. Here then is your bad news.

Working at home is a distraction - instead, you'll have a storefront that random people can walk in at any time. Your current space is dreary - so you'll move into a 150 year old house with no built-in office lighting. Your retail idea is about a slowly dying industry, and you don't want to run it at night when people are shopping. You need to get out of the house, and it's okay for your family, because you won't have homework at night, but now you've scheduled poetry readings at night.

In order to make your monthly "nut" of mortgage, taxes and insurance, you'll have to work harder -- but you've already hired yourself an employee to do the things you don't want to do. This means you'll have to hire an accountant to do the other things you'll now be on the hook for, that you also don't want to do. The things you won't want to do will accumulate, believe me. You have a location where you're allowing the public in? Any plumbing or electrical problem has to be dealt with immediately -- and paid for immediately. Who does the cleaning? Who gets rid of the bees that take over the second floor? That porch doesn't look public-ready. Is all this under an incorporation or LLC, so that you and your family -- and your current house -- are not personally liable if somebody falls through the floorboards and sues you?

I suppose it'd be wise to rent an office space somewhere on Main Street first to see if it works out -

[skysidhe]

Only good friends burst someones bubble.

[Radar]

In order for it to make financial sense, the increase in income would have to be enough to cover the mortgage payment, power, trash, insurance, phone (assuming you want one), internet connection, electricity, office employee salary, office supplies, and other things like a refrigerator or stove if you want a small lunch room.

That's a pretty big jump from working in a garage or extra bedroom. I know exactly what you mean about working from home. I can never study at home because if my wife sees me sitting at my computer, she naturally assumes I'm goofing off, or thinks what I'm doing isn't as important as taking out the trash, changing our daughter's diaper, etc.

She doesn't realize that the reason I can pay all of our bills is because I am constantly required to update my knowledge and certifications.

And other than my wife giving me honey-do's, I also have the temptation of cable tv, taking a nap in my bed, and a host of other things.

I always study best in a coffee shop with a laptop and books or in a library.

[bluecuracao]

I would suggest hiring someone to do all your household stuff, so you can work full-time at home to start off. Put your foot down that you are not to be disturbed during work hours. After working that way for a while, if the potential pans out, then you will be in a better position to decide whether you could move to a commercial space or not.

[Sundae]

Blue, that is such a good idea. Cleaners are at the bottom of the spectrum pay-wise. If you get someone to do the cheapest thing you do, your valuable time stretches so much further.

Although ideally you should encourage the kids to understand the concept of "household" and get them to start contributing. We had to, from an early age. Seems to have fostered a sense of responsibility in both my siblings. And encouraged a thrill of "getting away with it" in me. Seriously, I swapped the morning chore of emptying the waste paper bins in 3 rooms (2 minutes) for walking the dog (20-30 mins). Just because walking the dog felt like fun, and emptying the bins felt like work!

[Cicero]

Oh yea. They sound right on. That's how evreyone else I know does it. (not myself of course)

[classicman]

Don't forget making it handicapped accessible...

[Juniper]

Oh well, it's a fun dream.

[lookout123]

Enjoy your dream as it is. UT brings up some very valid points so don't ignore what he is saying, just remember that his views are shaped by his horrible experience watching his dream business die.

I own my company and I started it out of my home office after going independent. Now I have my offices and some employees and all of that crap to make life easier. I don't regret my choice at all and love the thrill of creating my own business/legacy/sinking ship.(although if I could make even half what I do now as a coach I'd shut my doors tomorrow) Just remember that once you take on REAL responsibilities like rent/mortgage, employees, and supplies your very enjoyable job can suddenly start to crush you beneath the stress of making it all work.

All that being said - if you really think you can make a go of it and are willing to make the sacrifices, then have at it and good luck.

[Aliantha]

Over here, if you have a mortgage on your home and you can possibly work from home, the tax benefits are incredible. From that point of view, I'd work from home as much as possible if I were in your shoes. The cleaner is an excellent idea and nowhere near as risky as buying another property or renting office space.

Don't let you dream go though. Keep it alive...and let it motivate you. I admire your desire to do something more than you are at present.

[Juniper]

An alternative would be building an office on my own property. Hubby is talking about making our garage into an office for me then building a detached garage - why not just build an office? Except the garage wouldn't need heat and a/c and my office would. I actually do have the space for it (we own two large lots, adding up to 1.5 acres). But alas, no prestigious Main Street location.

The idea of the stationery/writing workshop is actually kind of appropriate; our little town is trying to reinvent itself as a funky little boutique shopping area. We've got an art gallery, coffee shop, skate shop, studio for art & music lessons, upscale kids' clothing boutique, photography studio, craft reseller, yarn store, and an extremely popular ice cream shop...it's tough going because as you said, everyone seems to close up at 6 p.m.

It may work for Waynesville, "the antique capital of Ohio" but not here. Here, we need to encourage shopping on evenings and weekends, just have people hang out in town to shop and be seen.

I wouldn't mind staying open late; I'm a night person anyway. Doesn't have to be every day.

Oh well, something to think about.

[robsterman1]

Wait until the market stabilizes a bit before you go out and buy property. Mortgages are rather hard to get at the moment, unless you have gold-plated credit. A loft over the garage is a great alternative as well.

[Sundae]

Juni has to finish her degree first, so if she decides to go for it the market might be more stable by then.