Things to consider when starting a business from home

Whether you’ve always fancied being your own boss or your side hustle is beginning to demand more of your attention, starting a business from home is exciting.

Turning that idea into a reality takes hard work and dedication, but the rewards can be attractive, especially if you're doing something you love and building it around your own space and routine.

If you’re tempted to begin building your empire from home, you’ll need a plan to get it up and running. Here’s a list to help get you started.

Have a business idea

You might already be doing it in your job or as a side venture, but you’ll need to start with an idea that can be turned into a money-making product or service.

When starting from home, it’s worth thinking about how your idea will fit into your space and lifestyle. Can it be managed remotely? Do you have room for any equipment or stock?

Do your research

You might love your idea but will your potential customers? Research what’s already out there, what competition you might have and whether you’ll be able to turn your concept into a healthy income.

It’s also useful to look at how others are running similar businesses from home, and how they reach their customers.

Put together your business plan

This lists your business objectives and how you’re going to achieve them. It will help you focus when you start out and help win any financial backing.

If you’re working from home, your plan should also consider how you’ll manage your time, workspace and day-to-day operations.

Check you have the right insurance

If your business involves having stock, check if it is covered by your home insurance.

Some home insurance policies may include cover for business-related items kept at home, such as tools, equipment or stock, depending on your policy and circumstances.

As every home business is different, it’s a good idea to review your cover to make sure it reflects how you’re using your space.

Make it official

With your plans in place, it’s time to sort the paperwork. You’ll need to register with HMRC for tax and if you’re setting up a limited company, you’ll have to tell Companies House.

Depending on what your business does, you may need licences and permits, especially if you’re operating from a residential property. You should also check what insurance your business needs.

Support for small businesses

There’s plenty of support for small businesses, including government-backed business support lines available throughout the UK.

The British Chambers of Commerce is another potential source of support, with local chambers bringing together businesses to build relationships and share best practice.

Even when you're working from home, you don’t have to do it alone. You may be able to get free support from private companies too. As an example, Google offers a mentoring service, training and tools to help you develop and market your business online.