Tuesday, 12 April 2016

Setting up and running a business from home

We collect money for literally thousands of companies, from dozens of different sectors. As we always say, Direct Debit suits businesses of all sizes and types. One of the fastest growing type of business is the micro business - that is less than 9 employees. We have seen a huge increase across the different sectors in micro business growth. Direct Debit with us takes away one of the biggest issues a very small business faces - cash flow problems by not getting paid on time.

Over 60% of people who start a business today start their company at homes, again across the whole business sector. The main advantage of startiung your company from home is the cost saving. Firstly, you don't have rent overheads, and you can claim a percentage of your domestic bills. You also have no commuting costs or time wasting.

You can employ people to work at home, all the normal rules of employment apply. However, the majority of home based businesses are outsourcing and sub-contracting, rather than taking on employed staff. You must remember though that if you have employees in your home you have to have all the correct health and safety policies and checks in place.

Running a business from home certainly has it's advantages, but there are downsides too. The lines between work and home life can become a bit fuzzy. You should absolutely have a dedicated area to do your work, that way when you are in your 'office' everyone in the house knows you are working.

You may find that your partner or other family members think you could take care of domestic responsibilities during the day, so make sure you deal with that expectation and talk about it. It may be that you can take care of dometic chores, but it may also be an unwanted distration.

Depending on the type of business you have you may need a license to operate and if you need to make significant changes to your house, planning permission. Also, think about your neighbours, will there be extra noise, smells, deliveries etc. that could upset them? You should also inform HMRC about what you are doing and or Companies House, don't forget that ALL earnings have to be declared.

Business insurance isn't generally that expensive to add to your home insurance, but you shold inform your mortgage company or landolord, as some agreements prohibit running your own business from home without prior consent.

The best thing about working from home is the flexibility you have in your working life, it puts you in control, just go into it with the right mindset and it will be the best decision you ever made...

No comments:

Post a Comment