Starting a New business
The benefits of starting a business from home.
Considering recent economic developments, Recoup Business Support Centre would suggest that any entrepreneur looking at starting up a micro business should look at using their home initially.
This will help reduce costs with the current energy & fuel crisis starting a business from home means the costs will be lower, travel expenses are avoided making a massive saving with current prices.
Is a home-based business right for you?
The advantages are that you:
- don't have to spend a lot of money on office rent
- save time and money by cutting your commute
- can be flexible around the hours you work
- reduce your energy costs from commercial to domestic
The disadvantages are:
- there may be domestic distractions and interruptions
- a lack of contact with clients and other entrepreneurs unless you do networking
- you might end up working long hours
- your mortgage, home insurance and tax situation may be affected
- If you're feeling isolated from other people, Recoup Business Support Centre can provide you with details of networking events with other businesses owners.
Popular home business ideas
If you don’t have a specific business idea but are considering working for yourself, consider opportunities in your local area for services such as childcare, dog walking and alteration services.
Other common home-based businesses include:
- consultants
- website designers
- creative arts and craft makers
- publishers
- caterers
- virtual assistants who provide professional assistance to clients from a home office
Stay employed as you build the business
Another benefit from working from home could be starting up whilst still in employment. By using the evenings and weekends to build your business. This means you won’t need to take the plunge and have money still coming in while your business develops.
Your business plan
If you then have a business idea, it’s time for you to create a written business plan. Preparing a business plan thoroughly will put you in a strong position and will help your business develop quicker.
Start-up costs and your work environment
The main issue for anyone starting a business from home will be the equipment needed. Developing your customer base can be a major issue, so investing in a good computer with relevant software may well be a priority for you. Start-up costs should be within your business plan.
Your work environment
It's important to create a dedicated workspace as it allows you to work without distraction and walk away at the end of the working day. You might consider marking the area you use for work a spare room away from the hustle and bustle of family life.
Record keeping
Keeping good records will keep you on the right track when it comes to invoices, tax returns become easier and quicker. If you are using part of your home for business, it is important to keep hold of your utility bills to track the amount spent on your business.
Outsourcing
You may want to consider outsourcing some of your tasks, like company credit checks to other small business as a way of increasing your professional network. You can grow your business without increasing headcount or expanding your premises, by outsourcing, for example:
- accounts
- administration
- telemarketing - for generating leads
- PR
- design and copywriting
Meeting spaces
When your business starts to grow, and you decide to work full time on the business you may also need to look for a suitable premises for your business needs. Or you could consider renting a managed workspace and meeting facility like those offered by Recoup Business Support
