If all your business actually needs is a small office space for one or two people then running your business from home may well be a good option, though if you need more space, or will need to make alterations, or run a business that may for any reason (say, noise or traffic) annoy your neighbours then you probably need to weigh up the costs and options more carefully. Before you go ahead you need to check with the mortgage lender or your landlord, as well as the insurance provider. You also need to check whether you will need to pay business rates and the local planning department if it may be necessary to make some structural changes. If your business will use hazardous chemicals or the operations may have some risk to workers then checking with the HSE (Heath and Safety Executive) will make sure you comply with rules for Health and Safety risk Assessment. This is a very simple process for an office-based business though you will need to know some information about setting up and using computer workstations appropriately. It is also essential that you segregate your business area from the rest of the home. You will need accountancy and legal services to help you with aspects of setting up your home business with important information about costs and allowances for your tax and evidence for claiming such allowances before you go ahead.
So what about money to set up your business?
Assuming you have already have had business advice on your business idea and undertaken at least preliminary assessment of the nature of your trading profile and possible future trajectory of sales over the first few months, you will need to think carefully about money. All new businesses need money to start up operations. Most businesses will need to buy at least some equipment, find office space or industrial unit, and pay for initial marketing. Don’t forget that you will need to furnish your office or unit and provide basic office supplies. Some companies will also need an assessment of costs of accounting services, payroll services, legal set up advice, and costs for shipping suppliers. It is worth shopping around at this stage to look at the range of costs for different supplies and different levels of service. Keep a note of all the information. As well as this all businesses need to factor in the money to cover your own needs until the business starts to receive income. It is also better to assume that some customers at least may well not pay on time and may cause cash flow problems unless the business has sufficient starting capital. When the money assessment has been made it will be possible to prepare a reasonable financial forecast for the business plan which can then be used to assess the business needs and help focus on a funding source whether this will be you own money, borrowings from family or friends, or will be requested from a bank or business investor.
Health and Safety for your Home Business
In our health and safety conscious culture it has become more and more important to be knowledgeable about the issues. Should you have an accident through whilst running the business in your home and need to claim on your insurance, then showing you know about health and safety risks and have done all you could to minimise them is a good idea. Legally you don’t need to have a written health and safety risk assessment unless you employ 5 people though a list showing you know about possible hazards and what you have done about them is a really good idea.
If you are running a home office using a computer you need to know about setting up your workstation to minimise eyestrain and repetitive strain injury, as well as possible electrical hazards (have you a surge protector fitted and checked your electrical equipment plugs and wires?) The home office if small may also have hazards for tripping and falling over boxes or cables on the floor and you may be a risk from back injury if you try to lift heavy loads incorrectly. You should also be aware of the quickest exit in case of fire. If you have a home workshop you may also need to show you are aware of risks with tool handling, and storage requirements for hazardous chemicals. Working on your own at home can also be stressful and lonely which is a major health and safety issue – and you should think about how to deal with this. (I know someone who plans a trip to the gym three times a week for health and socialising benefits). It’s worth just making a quick list of health and safety risks and noting what you can do to minimise them. If you have any doubt there is plenty of business advice available on these issues for the home business.