Some of the largest and most lucrative companies you know and love today started life in the founder’s home. Back in the ’70s, Steve Jobs created Apple in his parent’s garage and more recently, Ben Francis set up Gymshark from his room while studying, later moving into his parent’s garage too.
Like you now, there were things these businesses needed to take into consideration while building a brand before they invested in the offices the companies are run from today.
So, while you are working towards that million-pound empire, here’s what you need to know about running a business from home, while you are starting out and working from your dining room table.
Do you need permission?
It’s your home, so it might not have even crossed your mind that you may need permission. But, there is a chance you will. If you rent, it’s likely you’ll need to ask your landlord and if you own, you may need to speak to the mortgage provider. You may also need to speak to your local council, especially if your business will be receiving regular deliveries or customers.
Do you have the correct insurance?
It’s important to make sure you have the correct insurance. You may have home insurance, but this is unlikely going to cover your business too. Likewise, you don’t just want business insurance. You need to look specifically for home business insurance. This will provide: public liability cover, professional indemnity cover and business buildings cover. You may also want it to include some of the following: employers’ liability insurance, tool cover, business premises cover, business office/equipment cover, or business interruption cover.
Have you registered your business?
You’ll need to register your business with HMRC as well as Companies House if you intend to be a limited company.
- Once you are turning over £85,000 a year, you’ll need to register for VAT.
- If your work requires a room that is used solely for working, such as a treatment room, you may need to pay business rates.
Have you thought about health and safety?
This isn’t necessary for everyone to consider. If you are setting up as a freelance web designer, working on your computer from your spare room, this isn’t relevant to you. However, if your business involves preparing food or you intend for customers and clients to visit your home, then you will need to take this into consideration. Check out the HSE to find out more, if you think you need this.
Do you require extra space?
What do you need at home to run your business—will you need room for equipment, products, clients? Does that mean that you need more space? Then a storage unit may be an affordable way to find that space. Either have a clear-out at home and remove anything you don’t use on a daily basis, so everything you need for your job is in your house. Alternatively, you can use the storage unit for your business—to store your products, for example. Check out this storage guide to see what sizes are available.
Do you have the equipment you require?
This will vary from person to person depending on the type of business you intend to set up at home. But, most will require a computer, desk and chair as a minimum. Create a list so you have exactly what you need to get the job done properly. Beyond the things you need, is there anything you want? How can you make it an organized, enjoyable and motivating space to work in? This might include plants, prints for the wall, or lighting.
Don’t forget to keep receipts for the equipment, as you can claim expenses for items you intend to use for your business, including computers and printers.
Can you separate your work and living area?
You want to create an office that you can work in, but then shut the door and forget about until your working day starts again. It can be hard to have a work-life balance when both things happen in the same space. Sit on the sofa with your laptop and you could find you are still there at 9pm and even if you’re not and you do switch it off, you may just turn on the TV instead and not move from your spot. Set boundaries in terms of both your space and time.
Setting up your own business, working for yourself, and doing it from your own home is exciting—so, now you know what you need to consider, you can look forward to the new adventure you are about to embark on.
