flevyblog

Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.
MANAGEMENT & LEADERSHIP STRATEGY, MARKETING, SALES OPERATIONS & SUPPLY CHAIN ORGANIZATION & CHANGE IT/MIS Other

A Guide to Running a Business from Home

Do you dream of never having to run the gauntlet of the morning commute to work? Would you like to enjoy the convenience of running a business from home? Thousands of people across the UK are already doing just that, and it won’t be difficult if you want to add your name to the list. There are many advantages to running a business from home, convenience being the most obvious one. Not having to commute, being your own boss, building your business around family life and reduced overheads are a few of the many other advantages.

Before you pop the champagne cork to celebrate your new startup, here are three things you need to bear in mind.

Paying Tax

There are two things in life you can’t avoid, and one of them is paying taxes. Before you start your new enterprise, you need to get set up and registered to pay tax. 

Your Company Structure

The structure of your business is something else you need to consider as it can have far-reaching ramifications. You have several options, but most businesses register as either a sole trader, a partnership, or a limited company.

  • Limited company – if you decide you want to register your business as a limited company it will have its own legal identity. It is possible to have a limited company that is run by one person, who acts as a shareholder and director. The benefit of a limited company is that there is limited liability. In other words, you only stand to lose what you put into the company.
  • Partnership – this is the simplest way for two or more people to run a business together. The responsibility for any business debts is shared.
  • Sole Trader – if you’re running your business on your own this is the simplest option for you. However, you need to be aware that you’ll be personally responsible for your business debts. 

Insurance

If you’re running a business from your home, you need to inform your insurance provider. You may have stock and equipment in your home that needs to be added to your policy. An upgrade from domestic to business insurance may be required. Public liability insurance may also be a requirement as it covers anyone who suffers an injury when they come to visit for business purposes. Other categories of insurance that might apply include professional indemnity, business interruption, employer’s liability, motor insurance, and home insurance. Visit acorninsure.co.uk if you want to know more about home insurance, that is essential regardless of whether you are running a business from home or not. Looking after your home, should anything go wrong, is as important as looking after the business itself.

Do You Need Permission to Run a Business from Your Home?

The quick and simple answer to this question is yes. There are various authorities you need to ask permission from. It does, however, depend on the type of property you live in, whether you own or rent it, and the type of business you plan to run.

For the first few months, possibly even years, running your home-based business is going to be hard work. Don’t forget to give yourself some time off because you’ll need it. You can make it easier by taking the above points into account before you start your next endeavor.

About Shane Avron

Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.



Complimentary Business Training Guides


Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]   The BPM Digital Transformation Toolkit is a compilation of 3 whitepapers teaching you how to leverage Business Process Management (BPM) to drive Digital Transformation within your organization. [Learn more]
We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]   We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function

  

  

  

  

  


The Flevy Business Blog (http://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most articles have been contributed for management consultants and industry executives with over 20 years of experience. If you would like to contribute an article, please email our editor David Tang at [email protected].

Flevy (http://flevy.com) is the marketplace for premium business documents, such as management frameworks, presentation templates, and financial models. Our documents are of the same caliber produced by top tier consulting firms, like McKinsey, Bain, Accenture, BCG, and Deloitte. Learn more about Flevy here.


Connect with Flevy:

   
  


About Flevy.com   /   Terms   /   Privacy Policy
© 2019. Flevy LLC. All Rights Reserved.