11th Mar 2010

Business Link Guidance

RUNNING A BUSINESS FROM HOME

News from Business Link this week includes the following article...

Research conducted by Business Link shows that 44 per cent of all businesses in the South East are based from home.

Working from home used to be seen as the start-up or part-time option, but now more and more entrepreneurs and business owners are seeing how home premises can compete on an equal footing with counterparts in commercial premises – as long as technology and presentation are applied correctly.

Here is a round up of some of our best online resources for home-based entrepreneurs.

Health and safety

As a home-based business you are unlikely to have as many health and safety issues compared say to a works plant or a shop, but nevertheless, there are safety hazards in the home. To conduct a simple health and safety assessment, walk around your home and identify any possible hazards and then note actions or precautions that should be taken to remove the hazards or minimise the risk.

You are not expected to eliminate all risk, but you are required to protect people as far as 'reasonably practicable'. Read our guide to home working health and safety risk assessment.

Running costs

Home-based businesses already have a head start in the sustainability stakes when it comes to reducing commuting and other travel overheads. However, the rising cost of electricity and gas may have an impact on your profits as only a proportional amount of domestic bills may be claimed against working from home.

If your home business is technology intensive, these costs can escalate hugely if your equipment or heating is left on all day and then into the evening.

Three actions you could take include the following.

• Installing a wireless energy monitor to help you track and minimise wasted electricity.
• Would installing photovoltaic (PV) solar electricity panels on your home roof be an option? From April 2010 the government is offering substantial incentives including payback on electricity exported to the national grid. Find out more from the Energy Saving Trust about Clean Energy Cashback - Opens in a new window.
• Consider taking up a £400 cash incentive for homeowners to replace old boilers. The Boiler Scrappage Scheme incentivises the energy performance upgrade of heating and hot water systems. All homeowners who qualify will receive a £400 cash incentive towards the supply-and-fit of a brand new boiler when scrapping their old one – which must be the main boiler used to heat the home, and in working order. As a rule of thumb, the boiler must have been fitted before 1998 if gas fired and before 1975 if oil fired. Find out more on the Energy Saving Trust website - Opens in a new window.

Employees

If your business has too much work for you to cope with, or you find that administrative work is dragging you away from your first love – your business, then it may be appropriate to employ someone else. Consider these points.

• Trainee benefits – there are substantial incentives for offering work experience to graduate interns, or young apprentices. Investment in training a young person to take on some of your work can pay dividends, and can improve your eligibility for public sector contracts. For more information read our guide to creating opportunities for young people.
• Outsourcing – if the support you need is project based, or requires a professional to hit the ground running then hiring a freelancer is a popular option. Contractors do not need to be registered for PAYE, they pay their own national insurance contributions and they may be hired on short term time or delivery-based contracts. They can often be engaged to work remotely. For more information read our guide to taking on freelancers and outside contractors.   

For further advice read our guides on growing your home-based business and your options for taking on staff.

Presentation

Ensure the professional and efficient service you provide is reflected in the appearance of your logo, website and everything else you use to promote your business.

Make your website clean, clear and easy to use. If writing is not your forte, use a professional copywriter or ask a trusted person to check for typos and bad grammar which can undermine your offer.

Make sure your website provides clear contact options. If you do not wish to publish a telephone number, ensure that your email contact page is constructed in a secure and professional manner, and that you manage customer expectations regarding response time to enquiries by answerphone or email. If you do not wish to publish your home address then a PO Box can provide a safe, secure solution – and allow you to separate business from personal mail.

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