Here is part 1 of why to run your woodworking business from home.
- Low overhead costs:
Think about these costs if you decide to lease your shop.
- Rent – Plan on using a figure of $1.50/square foot at the low end of leasing a shop/showroom. If your space is 1,000 square feet that will cost you $1,500/month.
- Utilities – You are going to have to pay for the setup and installation of: Heat, AC, Internet, Telephone and Electricity. The deposits on these utilities will be well over a $1,000. Then add the monthly fees to each and even in a small shop this will add up to $500 plus per month
- Drive time and parking – Even if your shop is relatively close by plan on a round trip of at least 1/2 hour per day. Six times a week adds up to 3 hours. This could add a minimum of an additional $50 to $120/per month in fuel costs.
- Insurances – Most property owners will require having a general liability insurance policy. Figure in an additional monthly cost of $200/mo.
These are just 4 of several additional costs you’ll have if you decide to lease a shop space. Just looking at these numbers plan on spending up front $5,500, (1st, last and security deposit on your lease plus the deposits on your utilities). Then plan on spending an additional $2,300 monthly for your rent, utilities, fuel and insurance.
Think long and hard before leasing a shop space. Next up will be tax benefits.