Are you about to start a small business? Then there is a good chance you have already considered running it from your home. Before you do, there are a few things to think about. This guide will run down the pros and cons of working out of your house and give you a few key tips to doing so effectively.
The Advantages
The one that most appeals to those who punch a clock in an office every day is that you get to spend the day at home. This is, in many ways, the ultimate freedom for the self-employed person. Your hours can be every bit as flexible as you would like them to be.
Cost is another important factor when it comes to running a business at home. No rent to pay, no commuting costs and, if you are a parent, you can save money on childcare costs. Plus there's a number of tax benefits for those launching a home based business.
Thanks to the lower start-up costs, you can launch the company as a part time business and allow it to develop from there.
The Disadvantages
The first advantage could also be read as a disadvantage: spending all your time at home could lead to cabin fever pretty quickly. Running your business at home might also disturb your lifestyle and family privacy.
There's also your neighbours to consider. Running a company results in all kinds of comings and goings at your address that could lead to disturbances in your neighbourhood.
Being at home can sometimes make it difficult to get into the business-like frame of mind, making the establishment of daily timetables and disciplined working tough. There's a lot more distractions at home than there are in the office.
Tips on getting it right
The first thing to do is to assess the risks in your home. The Health and Safety act applies to a home business just as much as an office-space.
Will there be employees in your home every day? If so, you are legally required to take out employer's liability insurance.
Will you be taking meetings with clients, customers or business visitors not employed by the company at your address? Then public liability insurance will be essential.
Insurance will also be required for any business stock that you keep at home, plus a business interruption policy is worth picking up too.