Should I work from home?
Many people who become self-employed run their businesses from home. Working from home is generally cheaper - no travelling costs, no rent, minimum overheads and can be the answer for those first starting out. If you are seriously considering this, there are several important issues to work through first.
The most important of these is why you are doing this - better working environment, cheaper operation or even that you are starting a family and facing a major life re-styling. Whatever your reason, think carefully about what you expect to get out of it.
Working at home generally does mean a better working environment but an office in the lounge makes it hard to say goodnight at the end of the working day. Likewise receiving calls on your private line means that people will feel free to call in the evenings and weekends. Work and home life can never be separated totally and this is even more exaggerated for those who work at home. When you share a home with your business it is vital to take into account those you live with and find a balance between work and play that everyone is happy with.
Working at home can also be quite a lonely experience so whilst for some it is fine, it is not for everyone. Consider whether you are the right sort of person to cope. Isolation and loneliness is very much an individual issue but something to bear in mind when starting out. Home can be a very lonely place so if you need the constant human contact, factor it into your working day.
Self motivation can be another big problem. It is crucial but also very easy to let slip particularly as the business becomes more established and perhaps the initial enthusiasm wanes a little. Self discipline, motivation and good organisation are key to running a successful business and will help you cope with the pressure of self-employment.
Remember if you need support contact one of the small business organisations for advice and take advantage of networking opportunities.
Do you have any useful tips for working from home?
- Keep your work and home life separate if at all possible - if you do not have any actual room to use specifically for work, earmark a filing cabinet where you can lock important paperwork out of sight.
- If you use a computer for your business and it is shared by family members, try to keep files and folders separately. Be sure to back up all files on a regular basis and ensure you have a virus scanner on your computer. If you are using a shared computer, it might be worth the expenditure to purchase a computer solely for your business use.
- Paying for the installation of a separate telephone line for work calls makes business sense, especially if you are able to claim back tax. If you spend regular amounts of time on the internet, you will need a second line (or broadband) so that people can still reach you. Equally, a separate line for the fax may well be a good investment. An answering machine or a divert facility is essential especially if you are regularly away from your desk.
- Double check with both your home insurance broker and with your mortgage lender to make sure you are covered for working at home. If you have a lease, you will need to call your landlord or check your lease as some have restrictions on running a business from home. Make sure that you have adequate insurance cover for any expensive equipment. Also check what would happen in the event of fire or flood, or if a visitor or a member of staff had an accident.
- You may have to tighten up security when you are working from home. Security is an issue in two ways. On your computer you may inadvertently wipe your contacts list or it may be an issue of external protection for your whole office. Backing up the hard disk is an obvious security measure that many of us ignore, even more important with laptops which have a greater chance of being stolen. Putting vital computer disks into lockable and fireproof boxes is a relatively cheap option; it also means that you have a record if your computer fails. As mentioned previously, check your household insurance policy. Insurers will put the onus on you not to be negligent and leave yourself open to disaster. This may mean providing extra security measures around the house.
- Take regular breaks and try to keep regular hours. You may find yourself working very intensively without the usual interruptions of office life so set up guidelines on when to start and stop work. An answering machine or messaging service can be used to deal with calls outside your normal working hours.
- Make it a priority to keep your accounts up to date and be strict with yourself about keeping track of expenses. Put all business receipts, invoices etc in a clearly marked filing system so that everything is to hand when you need to file your accounts or complete tax forms. Do not wait until tax time to try to remember what all the receipts were for.
- Look into buying Income Protection Insurance which pays out a monthly sum if an accident or serious illness leaves you unable to work.
Do I need planning permission to work from home?
There are no hard and fast rules and the key lies in discussion with your local planning office.
Working from home does not normally require planning permission provided:
- the main use of the house remains as a family home (usually not more than one room should be used for business)
- there are no persons employed who do not live at the property
- there is no nuisance caused to neighbouring properties by deliveries including:
- the dropping off of children in the case of child-minding
- callers, or
- because of the hours of work or the nature of the business
- there is no external advertising (including a nameplate) on the premises
- there are no trade vehicles parked on the premises
It should be stressed that it is important to have discussions with your local planning office right from the start. Whether you need planning permission is determined by whether it is a material change of use, whether you get permission is determined by levels of activity and the type of use.
Also check if you are thinking of converting a garage or outbuilding, if you are employing anybody or bringing visitors to the property.
Remember too, that if you intend to run a catering operation from home you must contact your local Environmental Health Department.
If you would like further information on working from home then you may find the following websites useful:
www.homeworkinguk.com
Offers advice on many home-working opportunities
www.freelancecentre.com
Advice for freelancers, consultants or self-employed entrepreneurs who run a one person business
www.ownbase.com
National business and social network open to anyone who works from home
www.newworkplace.com
Offers business ideas, articles and resources to help you start a business at home
