Entrepreneurs: How to Run a Business from Home Successfully



The number of people working from home is on the increase. Whether you’re planning your business and are all geared up to make your next move, or just want to earn extra cash alongside your day job, here are a few tips to help you crack on with starting up on your own, from raising funds to understanding some of the legal issues you’ll face.


Finding the Funds


If you’re planning on running a business from home, you’re most likely going to need some sort of capital in order to grow and develop. Perhaps you want to build an independent office area to separate you from family interruptions or just to invest in new equipment. Understandably, you might cringe at the thought of trying to borrow money. The process may appear too complex, costly and the thought of approaching a bank manager might make you recoil in horror.


Thankfully, a number of organisations are on hand to help, namely the business loan company Everline.com; one of the leading online providers at the moment. Their business funding guide lays all the information out clearly and concisely – and best of all, it’s free. Sites such as Everline make it easy to understand all the various elements involved.


Tell the Tax Man


Don’t, whatever you do, forget to inform HM Revenue & Customs that you’ve started a business. And you must do so within three months of the launch so you’re all set to pay the right National Insurance contributions and ready for self-assessment.


Get Yourself Organised


The revenue can fine you £3,000 if they find out you aren’t keeping a sufficient level of records. Scary, huh? So you might want to invest in a filing cabinet to protect you if there’s a revenue inquiry. It doesn’t matter whether you’re running a cupcake business or just selling stuff on eBay, it’s vital to keep a record of payments you receive. It doesn’t mean you need to set up a separate bank account as HMRC will check your personal bank account if need be.


Business Expenses


Do you know what you can claim as legitimate business expenses? Once you do, this will keep the tax bill as low as possible. While some costs may be directly related to your business, such as a separate phone line or broadband, others will have a dual purpose. These include things like:


Mortgage interest (not not capital repayment) or rent if you’re a tenant)


-- Running cost such as heat, light, and water and TV license


-- Repairs to your home or adding a desk and bookcase to an existing room


-- Council tax


-- Car or van


To avoid being liable for capital gains tax, it’s best to share out your costs as honestly and as sensibly as you can instead of claiming 100% for business use. Decide how many rooms you have in your home and ascertain how many of those rooms you use for business and estimate how much time you actually use these rooms for business.


For example, if you’re a self-employed writer or graphic designer, you might spend the vast majority of your work at home, if you’re a plumber or electrician, you might spend an hour or two a week writing up your books at home.


Are You Insured?


Make sure you check your office equipment is covered. If you have stock, business cash and tools stored at home, you’ll need a commercial insurance policy. And if you have clients or employees visiting you at home, you need to add public liability cover to your policy in case any of them have an accident at your home. This also applies if you're working in other people’s homes as a decorator, for instance. An insurance policy can cost as little as £5 a month.


Take Some Time Out


Sure, you’re working from home. But that doesn’t mean you have to be on call 24/7. Get the right balance of work time and playtime – after all, everyone needs a break in the day at some point.


Stay Connected


Let’s face it.  Working from home can get lonely. There’s no one to have a quick natter with over a cuppa and as for lunchtime trips to the pub with colleagues, that’s also a no-go. So it’s important to make phone calls rather than communicating via email all the time. Try and push yourself to go to industry events and network once in a while too. Family and friends can provide moral support and might have some helpful tips or contacts. And make sure you tell them the hours you keep so they don’t turn up unexpectedly on your working day.






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