A guide to setting up a home-based business

The current global climate has changed the way many people think about home-based businesses. The pandemic and the necessity of the situation it has left us with has been the push many people need to make the move. Here’s what to consider if you’re ready to make the move to a home-based business…

Work on your business plan

Even if you are starting your business with no external financial funding or support, it’s still important to plot your business and the milestones you want to achieve, as it will help you focus over the first few years. Here’s what you’ll need to include:

• Overview – a summary of the business idea, the ideal customer, how you’ll drum up sales (or whatever metric is most important to your business) and what milestones you want to hit.
• Analysis – of your target audience, your competitors, the current market and any gaps you want to fill.
• Operations – who and what is involved in running the business and any costs, such as shipping/storage or equipment you’ve invested in.
• Financials – this is where you can delve into more detailed projections for when you begin trading. You might also write about current financial position if this document will be seen by potential investors – and this gives you an opportunity to start good money habits now when laying out the facts.
• Branding – set out any creative ideas on branding and marketing you have, as you’ll have to wear a lot of hats when starting out and promoting your new venture.

Even if no one other than you is going to read this document it’s crucial for you to understand your business inside and out at this early stage.

Set up your space

Since you’ll be home-based, you need to set up a suitable area to work from regardless of the nature of what you’ll be doing

If you’re lucky enough to have an office or spare room to work from then set up a desk and comfy chair – you’ll be spending a lot of time in this room so decorate in a way that makes you feel motivated, with comfort in mind. Also make sure you have effective filing and storage for any potential paperwork needed for your start in trading.

But not all businesses are office based, and there are other options to explore that can still work at home. You might be able to create affordable working space in your grounds for less than you realise. So for example, you could create a space for a workshop for cars construction or machinery repairs using a roof cover over two former shipping containers.

Whether it’s inside or out – practical or office based – get your space sorted and then you can register your business address and alert both government and financial authorities of your new venture.

Be sure to be insured

It’s a must to ensure that your business is insured against any potential claims. Every application will be tailored for your exact business and products and services, but it’s important to cover yourself and your clientele with effective cover for you, any visitors, your workforce (if you have any) plus the stock you might hold.