Is it better to have a studio outside the home to be successful in this business?

[suet]

I think you can set the studio at home at the very beginning because it is very expensive for renting, equipments setup etc. and it would be time to set outside home when your business do well and develop for a period of time. You know, you cant forced business outcomes. Don’t take risk

 

[behanana]

One of the things that needs to be taken into consideration here is when you set your business plan, as anyone looking to start a legit business should, your business is/should pay rent for the space reguardless of where it is located. Granted, you may not charge your business the same rental rate for a room in your house as a location outside your house, but there should be a line on your balance sheet with a number dedicated to studio/office rental. This does 2 things, one it pays you for the space your business is taking up inside your house, and two if you grow to a point where you need to move out of you house there is already a portion of your income dedicated to rental so you don't have to make dramatic changes to your pricing to compensate for new space.
As KMH said too, having a studio greatly increases overhead expenses so although you might have a higher income on paper, your actuall net income will most likely be lower. This is all given the fact that you are structuring a business with a plan, taking into consideration all the expenses that go along with it. If you are just doing under the table type of work, the added overhead of having a studio may never actually be felt because you probably aren't following the numbers that closely, just looking at what each job brings in on it's own.