Running a business from home- what you need to know

The pandemic has forced many people to work from home, but it has also increased the number of people starting a business from home. In the UK, it is estimated at around 2.9 million home-based businesses. Running a business from home can be a great way to save money, have flexible working hours, and reduce stress levels. However, knowing what you are getting into is essential before you start.

Legal requirements

Before starting a home-based business, you must ensure that you have all the necessary legal requirements in place. Firstly, you must check whether your local council allows you to run a business from home. Some councils may require you to apply for planning permission or a change of use to your property.

You need to register your business with HM Revenue & Customs (HMRC) and ensure that you pay the appropriate taxes. You may also need to register for Value Added Tax (VAT) if your business has an annual turnover of over £85,000.

Finally, you need to ensure that you have the appropriate insurance. Your standard home insurance policy may not cover your business activities, so you must speak to your insurance provider to determine what additional cover you need.

Home office

When running a business from home, it is crucial to have a dedicated workspace. This will help you stay focused and productive and make it easier to separate your work and personal life. Ideally, you should have a separate room you can use as an office, but if this is not possible, you should create a separate area within your home.

You should also invest in appropriate lighting and equipment and a comfortable and ergonomic office chair and desk. This will help you to avoid any physical strain or injuries arising from poor posture or inadequate equipment.

Time management

Working from home can be both a blessing and a curse regarding time management. On the one hand, you have more flexibility to work around your personal life and other commitments. On the other hand, it can be challenging to switch off and separate your work and personal life.

It is important to create a routine and stick to it to ensure that you make the most of your time and stay productive. This should include set working hours, breaks, and time off. You should also avoid distractions such as social media or household chores during work hours.

Marketing and promotion

Marketing and promotion are essential for any business, but working from home can be particularly challenging. You may have the same opportunities to network or advertise as you would if you were based in a traditional office.

However, there are still plenty of ways to market your business from home. This can include setting up a website, using social media, attending online networking events, and contacting potential customers or clients via email or phone.

Financial management

Running a business from home means you are responsible for all aspects of financial management, from invoicing and expenses to cash flow and taxes. Keeping accurate records and staying on top of your finances is essential to ensure your business stays profitable.

Consider using accounting software or hiring an accountant to help you manage your finances. This can save time and ensure you meet all your financial obligations.

Dealing with isolation

One of the biggest challenges of running a business from home is dealing with isolation. Working alone can be lonely and isolating, affecting your mental health and well-being.

Staying connected with others personally and professionally is vital to combat this. This can include attending networking events, joining online communities or forums related to your industry, or contacting other home-based business owners for support and advice.

It can also be helpful to take breaks throughout the day and engage in activities that help you feel connected, such as walking or meeting friends for lunch.

Balancing work and personal life

When you run a business from home, separating your work and personal life can be challenging. Setting clear boundaries and creating a schedule that allows you to switch off and spend time with family and friends is essential.

This can include setting a specific time to start and finish work each day, turning off your work phone or email outside of working hours, and scheduling time for hobbies and other activities you enjoy.

Dealing with distractions

Working from home can be full of distractions, whether it’s the TV, household chores, or family members. Setting boundaries, communicating with those around you about your work schedule, and minimising distractions are essential.

Creating a dedicated workspace and using tools such as noise-cancelling headphones or a white noise machine can also help to minimise distractions and improve your focus.

Maintaining professionalism

When running a business from home, it can be easy to fall into a more casual approach to work. However, it is vital to maintain a professional image and approach to your business.

This can include creating a professional email signature, setting up a separate business phone number, and ensuring that your website and marketing materials are of a high standard.

Staying up-to-date with regulations

As with any business, it is important to stay up-to-date with any changes to regulations or laws that may affect your business. This can include changes to tax regulations, health and safety requirements, or data protection laws.

It is important to stay informed and seek professional advice when necessary to ensure you meet all your legal obligations.

Conclusion

A home-based business from home can save money, have flexible working hours, reduce stress levels, and save money. It is important to ensure you have all legal requirements, have a dedicated workspace, manage your time effectively, and stay connected with others. Take your home-based business seriously to avoid any problems. These tips can create a successful home-based business that allows you to achieve goals while maintaining a healthy work-life balance.