With the worry of economic instability as a result of Brexit negotiation fears looming, it is safe to say that more of us are looking for ways to support ourselves during a trying time. While it is yet unclear to whether unemployment figures will rise or fall, we believe it is important that the UK population is better prepared on how to be more self-sufficient and know how to be successfully self-employed.
Working for yourself can not only save you from dealing with financial problems in the event of an economy crash and job loss (thus ensuring that you do not have to rely on a payday loan lender, for example), but it can also be very rewarding too. Here are some of our top tips when it comes to starting up your very own business from the comfort of your own home.
There are three main ways in which you can set up your small business from home:
- Sole trader- your business is owned and run by you alone
- Partnership- Similar to a sole trader except for the fact that two or more people run the business
- Limited company- This is where your personal assets are protected should your company fall into financial hardship. It also means that you will be required to offer up your file accounts and annual returns to the Companies House and also pay corporation tax.
Finding ways to fund your business venture is one of the trickiest steps. Some small businesses use their savings to get their business started, which is not a viable option for everyone particularly if you do not have savings to begin with. It is also worthwhile to remember that it is becoming increasingly harder to get funding from banks. Aside from this you could also explore the following options:
- Business grants
- Business angel support
- Family and friend investments
If you are starting up as a limited company it is essential that you have a business bank account. This will mean that you will be required to show a business plan prior to this and also compare business accounts to ensure that you are getting the best deal in terms of account transaction fees and interest rates.
Keeping up to date, accurate and very detailed records are essential for any business. You can either keep your own books or employ a bookkeeper or an accountant to do this for you. It may also be worthwhile to invest in both digital and physical copies of all your paperwork too, just to be on the safe side.
Regardless of whether you will be working from home or on business premises, you will need to make sure that you protect the things you need to make your business. If you are looking to employ staff you will need to take out employer’s liability insurance and get public liability cover if you have clients or customers entering your home for business purposes.