If costs are rising, and your business is grappling from the effects of the current recession, there may be a way to alleviate your situation.
If the very existence of your income-source is being threatened by escalating business expenses and sales are slowing down, you may benefit from this smart business tip.
  Cut your costs by moving your business or office into your home.
Be a home-based business, ride out these challenging times, and come out of the recession stronger than ever.
  Becoming a home-based business allows you to reduce or even eliminate the cost of:

• Office or store rental.
  Instead of paying rent to someone else, get a tax deduction for having a home office space.
  
• Commuting.
  Save on gas and auto expenses by not having to travel or use a car going to your workplace.
  
• Business-related travel.
  Since your house is now your business place, some travel to and from your home becomes deductible.
  
• Food.
  When you're hungry, you don't need to eat-out.
  Coffee breaks and lunches are far less expensive at home.
  You also have the option of eating real and healthy foods.
  
• Insurance.
  Riders and endorsements on your homeowner's insurance policies may cost less.
  You may also deduct a portion of your current insurance as business expense.
  
• Personnel.
  Having moved your business at home, you can also have your staff work from their homes.
  Set up your business as a virtual company and realize savings on employee-related costs.
  
• Taxes.
  By using your home for business, you may deduct a portion of your homeowners' dues and real estate taxes.
  You may also deduct furniture converted to business use and a portion of the cost of entertaining business associates at home.
  

Many companies, after shifting to a home-based model, realized substantial cost savings.
They then passed these savings to their customers by lowering their prices while maintaining or even increasing profits.
  However, some things need consideration before making the big switch from renting a space to becoming home-based.
Get professional help to sort issues including zoning laws pertaining to the operation of your home-business.
Does your business license restrict you from conducting the business from a residence? Does your neighborhood allow the kind of business that you want to operate at home? Will you bring in too much traffic, or do you have enough parking spaces for your business associates?   But the things that need consideration are minor compared to the benefits of operating your business at home.
In fact, according to a survey, personal satisfaction from running a business at home is extremely high compared to those run at a separate location.
In the said survey, home-business operators reported to be happier, citing reasons for the high satisfaction ratings including more control over their time, more time with family, greater flexibility to balance home and work, a more relaxed environment, and more time to be involved with their local community or personal interests outside of work.