Start a business from home
Guidance and practical tips on starting a home-based business and local 91香蕉黄色视频 to help establish your home business
If you are thinking of starting your own business you should consider the possibility of starting up from home.
Home-based businesses are a popular option for many types of smaller business. Benefits include:
- lower costs
- lack of travel expenses
- better work/life balance
- flexible working hours
- a working environment that you have chosen/designed
Advances in technology mean that many kinds of business can be run from a home base.
This guide outlines the advantages and disadvantages of starting a business from home and provides information on start-up costs and financing a home-based business.
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Access free start-up business 91香蕉黄色视频 from your local council. If you have a great idea but you're not sure how to turn it into a business, or you have already started out in business and require mentorship on your next steps, Go Succeed Start experts will help you to create a business plan, seek funding and put all the foundations in place to get your business up and running.
or call 0800 027 0639 to register for this free advice and guidance.
Advantages and disadvantages of starting a business from home
An overview of the benefits and drawbacks of deciding to start your own business as a home-based enterprise
Becoming a home-based business owner is an option if you don't actually need to run your business from rented or owned business premises.
It's a common choice for people who just need a small office, or who spend most of their time working on premises owned by their clients.
However, working from home may not be an option if it significantly changes the use of your home, or affects your local area, for example if you have lots of visitors. If you rent your home, your licence or lease may include restrictions on using it for business purposes.
Advantages of starting a business from home
Some of the main advantages of a home-based business are:
- lower costs - you do not have a sizeable expenditure on office rental or office purchase
- time efficiency - you can save time and money by cutting your commute
- flexible schedule - you can be flexible around the hours you work
- fewer workplace distractions - you can avoid the distractions and noise of the workplace
- reduced financial risks - you are taking less of a risk with your new business as less start-up money is required
- tax savings - working from home can help you save money on tax
Your business will be able to claim tax relief on domestic bills for the areas of the house used for your business. If your business is VAT registered, you may be able to claim back VAT on articles you buy for business use.
Disadvantages of starting a business from home
The disadvantages of a home-based business can be:
- blurring work-life boundaries- it may prove difficult to keep work and home-life separate, and there may be domestic distractions and interruptions
- limited interaction - a lack of contact with other people and businesses
- long hours - you might end up working long hours
- isolation - you may feel a sense of isolation if you are working alone at home with few social interactions on a day-to-day basis
- impact on home finances - your mortgage, home insurance and tax situation may be affected. See how to use your home as a workplace
Addressing the disadvantages
It is important to keep your home and work life separate, especially if you have a family. There are simple steps you can take to make this separation - see workspace for a home-based business.
If you are feeling isolated from other people, our events finder can help you find information on local networking events in your area - .
You can also get involved in online networking - see Northern Ireland business networks and social media best practice for business.
Popular home-based business ideas
How to find the right home business idea which can work for you and inspire your entrepreneurial dreams
If you don't have a home business idea yet, ask yourself some questions:
- Is there a gap in the market? Have you tried to buy something that you just can't find? In this case, others may be looking for that product too.
- What is my passion/skill/hobby? Can you find a way of making a living from it?
- Can I do something better? Have you seen someone offer a product or service that you think you can offer better yourself?
Popular business ideas that you can start from home
Consider opportunities in your local area for services such as:
- childcare
- tutoring
- translation services
- editorial services
- dog walking
- alteration services
Other popular home-based business ideas include:
- accountants
- arts and craft makers
- bed and breakfast facilities
- business coaching
- caterers
- consultants
- creating an online shop
- pet grooming
- public relations services
- publishers
- virtual assistants who provide professional assistance to clients from a home office
- website designers
- writing/blogging
Working 'five to nine'
You may want to consider starting a business whilst in full or part-time employment, using the evenings and weekends to build your business - see start a part-time business.
Watch a short video that will help you develop your business idea.
Start-up costs and financing your home-based business
The most common costs to plan for when starting a business from home and options for financing your initial setup
If you are looking for some extra funds to start up a home-based business, there are various options to consider.
For more information, see:
- business financing options - an overview
- choose the right finance when starting up
- use your business plan to get funding
Initial costs for a home business
You will need to buy, lease or rent the equipment for your home office and any materials you need for the service you are supplying - see decide whether to lease or buy assets.
Finding and keeping in touch with customers is a major issue, so investing in a good computer with relevant software and a broadband connection will be a priority in most cases.
The most common costs to consider when starting out are:
- computer or laptop
- reliable broadband access
- mobile phone
- an ergonomic office desk& and chair
- business cards
- branding merchandising
- printed materials
- stock for products you supply
- packaging materials
Save on software costs
When you are factoring software packages into your start-up costs, take a look at the much cheaper or even free options - open-source software such as OpenOffice and Google Docs.
For more information, see computer software for business and IT for home-based businesses.
Read further information on managing business finance during the start-up phase.
Record keeping for a home-based business
Business records you need to keep for your home-based business and tips for getting your record-keeping right
It is vital to keep full and accurate records of your income and expenses from the start. Keeping records makes sound business sense and is a legal requirement. So it is important to get a proper system in place from the outset, and update the information regularly.
Advantages of good record-keeping for home businesses
Keeping good records helps you:
- complete your tax returns easier and quicker
- pay the right tax at the right time
- avoid paying unnecessary interest and penalties
You should keep invoices and receipts to show what you have bought or sold relating to your business.
If you are employing others, you must keep records of their wages and tax, and National Insurance you have deducted and paid to HM Revenue & Customs (HMRC).
Keeping bank statements and building society books is vital, especially if you don't have a separate business account. You should be able to show clearly what you have spent personally and what is spent on business. If you use cash, you will need till receipts and a record book to keep track of it all.
If you are using part of your home for business then you should keep copies of the utility bills so that you can work out the amount spent in relation to your business.
If you have an accountant you might want to get their advice on what system suits your business and on how to keep your records up to date.
Keeping records is important as you can be penalised for not taking reasonable care with records and tax returns. HMRC provide information about taking reasonable care and how to .
For further information on record-keeping see:
IT for home-based business start-ups
Getting your home business IT investment right to ensure an engaging and secure customer-facing online presence
The home business owner depends on technology - to find and keep customers and to keep in touch with suppliers, partners and contacts.
Email and the internet offer simple and effective methods of customer care and management, while information technology (IT) can help you with almost every aspect of your business.
For more information, see the benefits of email and the internet.
The benefits of a website for a home business
Websites have become a must-have marketing tool for most businesses. Websites are good for:
- attracting sales
- branding your product or service
- keeping in touch with customers through email updates
You might want to start by using an 'off the shelf' template site. These can come with in-built payment systems for selling online and search engine optimisation (SEO) for pushing your site higher up in online search result listings.
For more information see search engine optimisation.
If you are thinking of selling products online, remember that you can also do this through existing auction websites.
Online networking and social media for home businesses
You can use social media like Twitter and LinkedIn to keep in touch with other business owners. This will alert you to business development opportunities and help overcome any feelings of isolation you experience as a home business owner. For more information, read social media best practice for business and Northern Ireland business networks.
Working away from home
IT doesn't just allow you to build a professional office at home - it enables you to work on the move. Technology such as WiFi, USB dongles, smart phones and video conferencing apps means that you can work wherever you want - see mobile technology.
Cloud computing provides businesses with a way of managing data and software requirements over the internet - 'in the cloud'. This makes your business information accessible from any computer or mobile device with an internet connection and web browser. Cloud computing can provide a cost effective and flexible solution to your IT requirements - see cloud computing.
Workspace for a home-based business
Work equipment and workspace requirements, planning permission and questions to ask yourself
It is important to create a dedicated workspace. It allows you to work without distraction and close the door on work at the end of the day.
Workspace priorities in the home
The area that you use for work should ideally be clearly marked as such. A spare room with a lockable door or an outbuilding are popular choices enabling home business owners to:
- deal with clients in a professional manner
- resist demands from other members of the household
- keep work equipment separate from home equipment and therefore protected
Allocating part of your house as a workplace can have tax and insurance implications - see tax considerations of working from home.
You can create a space to call your own by:
- using office equipment in a general area of the house and putting it away when not in use
- housing your workstation in a cupboard, wardrobe or under-stair space with lockable shutters or doors
Work equipment and workstation set-up
When setting up your work area:
- your chair and desk should be fully adjustable and suited for computer use
- your desk should be big enough for your computer, keyboard and monitor
- use storage to keep office free of clutter
- when sitting at your desk, keep your feet flat on the floor and your back straight - the top of your monitor should be at eye level
For more information see how to use your home as a workplace.
You must carry out a health and safety risk assessment on your workspace - see manage the risks in your business.
Home business and planning permission
If you are making substantial changes to your home to accommodate your business you should contact your local council to find out whether you will need .
Set up a virtual office
If you need to see clients for your business but you still want to run your business from home, a possible solution is using a virtual office. Watch the following short video to help you decide if a virtual office could work for your business.
Running your home-based business
How to keep your home business running smoothly with business development, customer care and administration
Managing your business properly will improve your chances of success and prepare you to grow your business.
Developing relationships from a home-based business
The more you communicate with customers, suppliers and other entrepreneurs, the more business opportunities you will identify. Consider the following:
- Developing relationships with suppliers and other businesses might enable you to bid for public procurement contracts - something that would be impossible on your own - see joint ventures and partnering and an overview of selling to government.
- Information technology (IT) is the key to many aspects of business development - see plan your IT.
- Stay in touch with fellow entrepreneurs through networking, speaking at events, contacting local journalists and entering awards and competitions. Our events finder can help you find information on local networking events in your area - .
- Get involved in online networking - see Northern Ireland business networks and social media best practice for business.
- Consider using customer contact, feedback and loyalty schemes to retain customers and increase your sales - see manage your customer care.
Cashflow for home businesses
Cashflow is the lifeblood of every business. You should do all you can to ensure that money owed is coming into the business. You can ensure prompt payment by issuing invoices on time and having a system in place to alert you to non-payment - see cashflow management and getting paid on time.
Support for home-based businesses
Support organisations, online resources and networking events can provide 91香蕉黄色视频 for home-based businesses
A wide range of help is available to you if you're starting a business from home. You can get help from a variety of local organisations, government agencies and online sources. Other forms of 91香蕉黄色视频 can be obtained from events such as networking meetings and business workshops.
Home business 91香蕉黄色视频 includes:
- Go Succeed Start experts in your local council will help you to create a business plan, seek funding and put all the foundations in place to get your business up and running - or call 0800 027 0639 to register for this free advice and guidance.
- The Northern Ireland Business Support Finder is a searchable database that can help you find publicly-funded and not-for-profit sources of assistance you may be eligible to apply for. Support may be available in a number of forms, including financial assistance and free or subsidised advice services - search for business 91香蕉黄色视频 and finance.
- Invest NI's regional office network offers training and advisory services to those starting up in business - see .
- Enterprise NI is a network of local enterprise agencies that offers key assistance to your business, whether you are already established or just starting up - .
- Mentoring can help you develop business skills. Building a relationship with a mentor can have a positive effect on your business, whether you are just starting up or are already established. A mentor can help you develop important business skills, 91香蕉黄色视频 you in making important decisions and put you in touch with useful business contacts - see the benefits of business mentoring.
- Northern Ireland Chamber of Commerce offers and may organise networking meetings for businesses of a similar size and in similar business sectors.
- Our Events Finder tool can help you to find a range of networking events and workshops in your local area - .
- Social media channels like Twitter and LinkedIn can alert you to business development opportunities and help you overcome any feelings of isolation you experience as a home business owner - see social media platforms.
My New Business
My New Business is a free online service that covers everything you need to plan, start and run a business. It has videos and tools, plus other learning resources - like tutorials and case studies. All of them are aimed at helping people like you get your business started.
It also includes checklists that cover everything from coming up with a strong business idea and developing it, to identifying and reaching your customers to turn that idea into a successful business - see My New Business.
Growth options for a home-based business
How to manage the growth of your home business by employing people, outsourcing and meeting spaces
When it comes to growing your business, one popular option is to focus on what you do best and outsource the rest.
Employing staff
If you are thinking of employing people, you need to determine their employment status, for example whether you will treat them as employees, contractors or sub-contractors, or simply 'volunteer' family and friends - see recruiting staff.
If you employ someone, you will have extra responsibilities relating to health and safety - for more information read what you need to do about health and safety.
Outsourcing
You can grow your business without increasing headcount or expanding your premises, by outsourcing, for example:
- accounts
- administration
- telemarketing - for generating leads
- PR
- design and copywriting
For more information see outsourcing.
Meeting spaces
As your business grows, you may find that your home is no longer suitable for all your business needs. Remember that you can rent managed workspace and meeting facilities for occasional use through business centres. These can be found in central locations in many towns across the United Kingdom.
For further information on business growth see:
- Assess your options for business growth
- Prepare a business plan for growth
- Grow your business successfully
Go Succeed Grow
If your business is already established and is now ready to expand, but you're not sure how to progress, Go Succeed Grow experts in your local council will provide tailored 91香蕉黄色视频 to help shorten the journey to business growth.
or call 0800 027 0639 to register for this free advice and guidance.
Seven tips for starting a business from home
Starting a business from home is a popular option for many businesses - here are some tips to help you get started
Starting a business from home is a popular option for many businesses. Generally, the costs will be lower, you can avoid travel expenses and you have the freedom and flexibility to work the hours you choose in an environment that you create yourself. These tips highlight things to consider when setting up your home business:
1. Start-up costs
You will need to buy, lease or rent the equipment for your home office and any materials you need for the service you are supplying. Common costs include a computer/laptop, broadband access, mobile phone, desk/chair, business cards and stock if you are supplying products.
2. Workspace
It is important to create a dedicated workspace. It allows you to work without distraction and close the door on work at the end of the day. It will also allow you to deal with clients in a professional manner, resist demands from other members of the household and keep work equipment separate from home equipment. You must also carry out a health and safety risk assessment to identify any possible hazards to yourself, workers, visitors and other members of your household.
3. Planning permission
If running your business from home means that the use of the building changes, or the activities that you undertake have an effect on the area where you live, you may need to apply for planning permission from your local council. For example, changes could include increased traffic near your property caused by your business operations or the need to make structural alterations to your home.
4. Tax considerations
Working from home can affect your tax situation. Your business will be able to claim tax relief on domestic bills for the areas of the house used for your business. If your business is VAT registered, you may be able to claim back VAT on articles you buy for business use. If you have set aside a room solely for working in, you'll have to work out if there's Capital Gains Tax to pay if you sell your house.
5. IT requirements
Many home business owners depend on technology to keep in touch with suppliers, partners and contacts. Access to email and the internet will 91香蕉黄色视频 you with these activities.
6. Record keeping
Keeping accurate records is important as you may incur penalties for not taking reasonable care with records and tax returns. Keep invoices and receipts to show what you have bought or sold relating to your business. If you are employing others, you must keep records of their wages, tax and National Insurance you have deducted and paid to HM Revenue & Customs (HMRC). Keeping bank statements and building society books is vital, especially if you don't have a separate business account.
7. Networking
Online networking allows you to build and maintain business relationships. You can use social media platforms like Twitter and LinkedIn to keep in touch with other business owners and identify new customers. This will alert you to business development opportunities and help overcome any feelings of isolation you may experience as a home business owner.