Once you’ve decided to start a new business from home, there are a number of practical elements to consider before you can become fully operational. If you want to know how to successfully launch your start-up from home, here’s a checklist for you to run through to help you avoid any major issues.
Check you have permission to run a home business
Before you spend any money, you may need to check with some eplaces of authority that you have permission to do so:
- Landlord
There are some tenancy agreements that prevent tenants from running a home business. Be sure to check this thoroughly so as not to breach the terms of the contract.
- Mortgage provider
You won’t be limited by the mortgage provider, but it makes sense to inform them your short-term income may be affected.
- Local authority
If you are planning on making structural changes to the property to accommodate the business — like building an extension — you will need to seek permission.
Make a dedicated space to work
To fully focus on your work you need to create a space away from distractions at home. This area should include basics such as a desk, office chair, laptop and some storage space, if needed. If you need some financial help to get these items, you could consider taking out a loan. Bad credit payday loans in particular are helpful for anyone with high credit scores and can ensure your start-up is operational in no time at all. Before agreeing to take out a loan, be sure you can afford to repay without defaulting and that the lender is FCA accredited.
Finding the right insurance
A combined business and domestic insurance policy will provide cover for any loss or damage to work-related equipment or furniture, as home insurance is not sufficient.
Start-ups that feature more than a home office should secure a specific insurance policy that relates to their activities. For example, you might need insurance for storing stock and merchandise, or cover for keeping business cash on the premises.
Business rates
Payment of business rates are not always applicable. They will only have to be paid if:
- Customers and clients attend the property on a regular basis.
- Staff are employed to work on the premises.
- Part of the property is converted into a place of business.
If you are unsure, the Valuation Office Agency will be able to tell you if business rates must be paid.
Staff employment
You can employ staff to work in your home-based start-up but before doing so you must:
- Conduct a full health and safety assessment.
- Confirm if business rates must be paid for employees.
- Provide contract rights and satisfy current employment law requirements in full.
Claiming back costs
Claiming back some of the costs that come with running a business will prove invaluable in the short term. This includes things such as:
- Rent, mortgage and council tax
Homeowners can claim part of the interest, while renters can claim a proportion of rental costs. Some council tax costs can also be claimed.
- Lighting and heating
A proportion of the money spent on lighting and heating related to your business activities can be claimed back.
- Internet and telephone
Dedicated business lines for internet usage are claimable. If any personal mobiles, landlines or broadband lines are used, it is your responsibility to identify how much is business related before making a claim.
