How to Run a Business from Home
The number of people working from home has grown substantially over the last few years. And with more individuals choosing to set up their own businesses from home, it’s important to know the ins and outs of how to properly set up your home business, as well as how to run it efficiently – providing you with the best chance at success.
In this blog, we’ll be exploring some of the key considerations that you’ll have to think about before setting up your home business, as well as a few top tips to help you operate smoothly and efficiently.
Do I Need Permission to Run a Business from My Home?
Consider who you’ll need to get permission from to start a business out of your house. If you’re renting the property, make sure you know whether or not you’re allowed to operate a business there – this may be prohibited in your tenancy agreement. Even if it isn’t mentioned in your lease, seek permission from your landlord.
If you have a mortgage on your property, you’ll need the lender’s permission. If you’re planning to run a business from your home and it won’t cause any disruption or be noticeable to your neighbours, there’s little chance that planning permission will be required. And if, for example, your business is mostly managed by yourself from your computer in your home office and no one else is involved, this shouldn’t cause any problems.
You may need planning permission if you’ll require or cause any of the following:
- Significant structural alterations to the home
- A noticeable increase in the amount of people coming to your home (e.g. customers)
- A sign drawing attention to your business
- Storage of items related to your business on the outside of your home
- Any activities that wouldn’t normally be expected in a residential area
If you have any doubts about whether or not your business will need planning permission, you should contact your local council or planning office.
Will it Affect My Tax?
If part of your home is used exclusively for business, you will have to pay business rates on that portion of the property, such as if that part of your home is used as a shop and nothing else.
If you later sell the home, you may be required to pay Capital Gains Tax on this part of the property. For example, if your company’s premises make up 20% of the property, you will have to pay tax on 20% of the value gained from selling it. This is due to homeowners being entitled to Private Residence Relief from Capital Gains Tax when they sell their house (provided it is their primary residence).
What Insurance Will I Need?
If you operate a home-based business and want to protect your belongings or your home, it is probable that your house or contents insurance will not cover any of your company’s operations, especially if you keep a large amount of stock or have customers visiting.
If you have customers or members of the public visiting your home, you’ll need public liability insurance. If you have workers on the premises, you’ll also require employer’s liability insurance. And if you keep any equipment or goods for your business at home, you should get business contents coverage as well.
Tips for Successfully Running Your Business from Home
Understanding the above considerations before starting your business is imperative, but knowing how to successfully and efficiently run your business once you get going is equally important. Here are some top tips to ensure that you’re maximising productivity and achieving the best results:
Set Up a Dedicated Workspace
If you want to be able to focus on work and avoid distractions, it’s important to set up a dedicated workspace in your home. This doesn’t necessarily mean building an extension or converting a room – it could simply be setting up a desk in a quiet corner of your house.
It’s also important to make sure that this workspace is comfortable, as you’ll likely be spending a lot of time there. Make sure you have a good chair, enough space to move around, and good lighting. And if you can, try to get some natural light too.
Be Disciplined With Your Working Hours
When working from home, it can be all too easy to let work consume your entire day (and night). But it’s important to be disciplined with your working hours and take some time for yourself.
Make sure you set regular working hours and stick to them as best you can. This will help you to stay focused and avoid burnout. And try to take at least a couple of days off each week.
You should also make sure that you take regular breaks, as sitting at a desk all day can be tiring and counterproductive. Get up and move around every few hours, and make sure you get some fresh air every day.
Remain Organised and Focused
To be productive when working from home, you need to remain organised and focused. This means having a clear plan for what you need to achieve each day, and not letting yourself get side-tracked by other things.
One way to stay focused is to set yourself daily or weekly goals. This will give you something to work towards and help you to measure your progress. And try to break up large tasks into smaller, more manageable chunks.
You should also make sure that your workspace is tidy and organised. A cluttered desk can be distracting and make it harder to find things when you need them. So take some time each week to declutter and organise your space.
Utilise Storage Units for Your Stock or Equipment
If you operate a business from home, chances are you’ll need to store stock or equipment somewhere. And storage units can be a great solution for this.
Storage units are secure, affordable, and can be hired on a short or long-term basis. So if you need somewhere to store stock, equipment, or other business belongings, storage could be the perfect solution for you.
At Cubic Storage, we have a fantastic range of units that are ideal for home office use. No matter how much stock or equipment you have, we’re sure that we’ll be able to help.
There are many things to consider before starting a business from home. From tax and insurance to productivity and organisation, there’s a lot to think about. But if you’re well prepared and have a solid plan in place, you’ll be in a good position to make your home-based business a success.