Being a self-employed person working from a home could be one of the most revered ways to work on your own terms. You can enjoy the best of work-life balance and the growth potential could be unlimited. However, you should be careful to not ignore the potential risks involved in the venture.
Running a home business is not a cakewalk as you would need to be a master manager to run operations from your residential place (which is a place of comfort for you till date!). You need to put in additional efforts to manoeuvre a professional set up from home. While it would save a lot of pounds in the initial set up cost when you decide to work from there still are some major considerations you must look at:
1. How to get funding for the business?
Being a self-employed individual, you need to have a very sound credit rating to be eligible for raising business loans. Based on your past and current income sources you become eligible for loans from conventional lenders. Nevertheless, if you are a first-time borrower, there still are a variety of ways to raise loans for self-employed. You need to find out what works the best for your home-based business model and career objectives.
You can consider using a secured homeowner loan and avail an affordable instalment loan against home equity. It is one of the most hassle-free ways to raise high ticket initial capital at the low-interest rate. You do not need to address your social circle for crowdfunding or loan guarantee this way. A lot of people love to work independently without sharing their financial position in the world and it is pretty normal to work with the pace you enjoy.
However, you must not begin your search for self-employed loans in the UK unless you are sure about the returns or future of your project. It is advisable to consider the backup plan before raising a secured loan.
2. Have a home office set up
To work seriously you must have a dedicated workspace set up at your home for your business. Although the kind of space would depend on the size of your home and nature of your work you need to ensure that you choose the place which is devoid of distractions. You must ensure that you do not use your bedroom for office work for carrying out your work. The workstation should always be set up in the exclusive work zone. Try to have a place where there are no distractions such as television, couch, loud noises or food. You need to commit yourself to your success.
3. Comply by legal route
Every state, county and city has its own laws and you must ensure that you comply with the required rules and check out tax formalities too. You must do some homework on this matter so that you do not end up paying additional fines and fees later on after setting up the business.
4. You might need to buy insurance
It is important to check if your home insurance covers a business from home too. Many policies do not cover commercial assets used for business activities. You may require buying a rider to safeguard your business assets in this case.
5. Have all debit and credit records audited
Use professional advice to have all the records audited. Pay your taxes on time. This is one of the best ways to build your business credibility in a short period. Always try to maintain updated records pertaining to all business activities and transactions.
Remember you yourself are the riding force behind success when you work from home.