Whether you work in a home office or a commercial office is a crucial decision that will affect your productivity and your bottom line.

“Your environment really affects you mentality,” says Joshua Zuchter, a business and life coach in Toronto. “If you’re working in an environment that’s conducive to you, and that uplifts you, you’re going to be more productive, you’re going to offer people better service, you’re going to be happier throughout the day.”

Here are six questions to ask yourself when deciding whether to work from home or in a formal office setting:

1. Where am I most productive?
Ask yourself which type of location helps you get the most work done.

If you are considering working from home, you have to be able to handle solitude, says Rosemary Smyth, owner and business coach of Rosemary Smyth and Associates in Victoria, B.C. There won’t be any colleagues coming and going to say “hello” to.

Also, working from home could mean dealing with distractions, such as housework or even the TV, says Zuchter. Without the right mentality, you could end up becoming passive about business and not working efficiently because your office is in the same place as that in which you relax.

2. What do my clients expect?
Think about the potential office space and how your clients would react to it.

Consider whether you plan to hold client meetings at the office and whether your home office would be a professional atmosphere for that, says Zuchter.

3. What are my overhead costs?
Judge how much it would cost to run an office outside the home.

Think of everything you need to pay for in order to maintain an office, such as rent, electricity and water, says Zuchter. Then ask yourself whether the financial gains will outweigh the expenses. In other words: will you be productive enough to bring in the necessary income to make the office worthwhile?

4. Do I have space for a home office?
Think about your house and whether it would accommodate an adequate work environment.

You need to have a room or space that is adequately lit and affords freedom from interruptions, says Zuchter. A corner of a kitchen, a bedroom or dark and dingy basement will only cause problems.

Make sure you have enough space to keep everything in the office, says Smyth. You don’t want your files spread out all over the house.

5. Am I organized enough to work from home?
For a home office to work you need to have the right personality traits.

Consider your organizational skills, says Smyth. Are you tidy enough so that you’ll be able to find everything in your office when you need it?

IE