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Working from home – the best way to start your business

Working from home – the best way to start your business

by | 24 Apr, 2023 | Getting Started

Introduction

Working from home can be a low cost way to start your business as every small business will need somewhere to at least carry-out admin work, but it may also be a principal workspace, and as this is going to be the source of your livelihood, it’s important to have a comfortable and functional home office space in order to stay productive and focused.

In this post, we’ll walk you through the steps involved in setting up a home office in the UK, from choosing the right space to selecting equipment and staying healthy and productive.

Choosing a space

When setting up a home office, choosing the right space is the first step. Ideally, you’ll want a space that is quiet, comfortable, and free from distractions. Here are some tips for selecting the right space:

Consider the lighting:

Make sure the space has adequate lighting, whether it’s natural light from a window or artificial light from a lamp. Good lighting is essential for reducing eye strain and keeping you alert.

Look at your power outlets:

Make sure the space has plenty of power outlets for your equipment, especially if you’ll be using a lot of devices like a computer, printer, and phone charger. You’ll be surprised at just how many things you will need to plug in. In my office, I have:

    • PC
    • Two monitors
    • Speakers
    • Label printer
    • Laser printer/copier
    • Network switch
    • Powered USB hub
    • BT Home Hub disc
    • Desk lamp

    That is TEN 230Vac mains outlets, and I don’t even have the internet modem in there.

    Proximity to other areas of the home:

    Consider the proximity of the space to other areas of the home. Ideally, you’ll want to be able to shut the door and focus on your work without being interrupted by other members of your household. You will also probably, find yourself working either late at night or early in the morning, so you will not want to disturb your family.

    Selecting equipment

    Once you’ve chosen your space, it’s time to start thinking about the equipment you’ll need for your home office. Here are the essential pieces of equipment you’ll need:

    Desk:

    You’ll need a desk that is the right size for your space and provides enough surface area for your computer, paperwork, and other equipment. Look for a desk that is sturdy and comfortable to work at for long periods of time. Consider spending enough to buy quality here; an inferior desk will lead to frustration and errors. Consider how much time you will need to use it and consider an adjustable height desk for standing and sitting use.

    Chair:

    A good office chair is essential for your comfort and posture. Look for a chair that provides good back support and is adjustable to your height. Again, don’t skimp on this. My office chair is now about ten years old and still going well.

    Computer:

    A computer is the heart of any home office. Choose a computer that meets your needs and budget, whether it’s a laptop or desktop. Make sure it has the necessary software and storage capacity for your work.

    Think about multiple uses for your computer and speak to someone that actually understands the needs of a small business owner, not the person trying to sell it to you. For example, a good laptop with a docking station may serve you better than a desktop.

    Printer:

    While many offices are going paperless, there are still times when you’ll need to print out documents. Choose an affordable and reliable printer with the features you need, such as the ability to print in colour. I consider a printer to be essential as some things need a paper backup. For example, I keep paper copies of the following:

    • All invoices and bills
    • All POs, both placed and received
    • All legal paperwork
    • All bank statements
    • All VAT submissions
    • Trial balances
    • Stocktaking sheets
    • All calibration records for my equipment and calibration services provided to my customers.

    This may seem old-fashioned, especially when you think that I am a technophile, but I’d rather take no chances with some things.

    Setting up the space

    Now that you have your equipment, it’s time to set up your home office. Here are some tips for creating a comfortable and efficient workspace:

    Cable management:

    Given that I have AT LEAST ten mains powered items in my office, plus all the interconnecting cables, cable management is key to efficiency. Make sure all cables are labelled and organised and out of the way, to reduce clutter and make it easier to move around your workspace.

    Set up your computer:

    If you don’t understand computers, consider finding a local IT support service that will configure things for you properly.

    I have built many computers and work in a technical space, but when I installed my first server, I paid an IT specialist to set ip up and configure it for me. Total cost was about £350 (tax deductible) but I had a network that just worked. My printers were accessible from everywhere and I had an off-site backup system configured so I could recover everything with a maximum loss of one day of data. In my view, it was money well spent and, even if you use Dropbox, or OneDrive etc. Getting it configured is the most difficult part.

    Arrange your workspace:

    Think about where the sun is at different times of the day. Place your monitor(s) etc. so that you can work properly whatever the weather. Install blinds if needed for working (they become tax deductible in most cases). If you use Zoom/Teams type of calling, consider what will be on view from your web camera.

    Minimise disruption

    • Consider using a mail PO Box if you are likely to receive a lot of incoming mail, or a drop off/collection point for packages.
    • Find a way of signalling to family and friends that you are working. My 84 year old mother lives three houses from me, so she knows when she can and cannot just turn-up, even for a few minutes… those few minutes often roll into longer, plus the time it takes to get back into the swing of whatever you were doing when the doorbell rang.
    • Consider getting a video doorbell that you can answer from your desk.
    • Schedule deliveries/collections for outside of your main desk-time.

    Staying productive and healthy

    Finally, staying productive and healthy is important when working from home. Here are some tips for maintaining a healthy work-life balance:

    Take breaks:

    Studies show that taking regular breaks throughout the day to stretch, move around, rest your eyes, and think of something restful actually increases productivity and the quality of work produced.

    Use a timer to remind you to take breaks. Of course, we are surrounded by timer options on our phones, tablets, and computers, but I like novelties and find that this timer is great fun to use and makes me take the breaks I need. Just roll it to the time needed and watch it do its stuff:

    working from home - efficiency timer

    Set boundaries:

    Set clear boundaries between work and personal time. Make sure you have designated work hours and stick to them, and avoid working in bed or in other areas of the home where you relax. I try to turn everything off for dinner and to avoid going back to it after dinner, but find a system that works for you… Maybe set a time to walk the dog and call it the end of the day.

    Stay connected:

    Stay connected with your family and friends to avoid feeling isolated. If possible, use Zoom/Teams type of video conferencing rather than just pinging emails to stay in touch… it’s also better for sales relationships.

    Manage stress:

    Working for yourself is stressful, and stress is cumulative. If you don’t take this into account when planning your business, you will become swamped… being swamped is a classic way to get into making mistakes or forgetting to follow up on things, and that will damage the reputation of you and your new business.

    There are many ways to manage stress, but nothing beats avoiding it in the first place. Plan your time or schedule by task… whatever works best for you.

    FAQs

    Is working from home effective?

    Working from home when trying to build a business can be effective; however, it is not ideal.

    Unlike working for another business, where hours and roles are clearly defined, starting and running a business takes a lot more time and requires a lot more flexibility.

    Where possible I would always advocate getting out of the min house where practicable.

    How much space do I need for working from home?

    The amount of space you’ll need for a home office depends on your needs and the equipment you’ll be using. Generally, you’ll need enough space for a desk, chair, computer, and any other equipment like a printer or scanner.

    Aim for a space that is quiet, comfortable, and free from distractions, and if using video conferencing, try to allow for space behind you so you appear to be in a larger space than in reality.

    Do I need a separate room for my home office?

    The stock answer will be ‘not necessarily, but I disagree. This is going to be your business, not a hobby. You need to treat your office as a place of work, and this can, realistically, only be done in a separate room. Even the smallest of spaces is better than a shared space.

    Can I deduct my home office expenses from my taxes?

    The short answer is ‘Yes’.

    I have a room that is 100% dedicated to my business between 08:00 and 18:00, Monday to Friday. Because of this, I can charge my business rental equivalent to a similar commercial space, which is significantly more than the HMRC working-from-home allowance.

    There are things that have to be put in place and in writing; this is where a specialised small business accountant can help.

    My space is legitimately reserved for my business during my office hours. Within it I have equipment that is wholly for use by my business.

    A board meeting (I am the only board member) minuted that the business would rent the office from me at a commercial equivalent to something local to me. I include the use of broadband internet, which was installed for the business and a contribution to lights, heat and water.

    Conclusion

    In my experience, many people creep into an office space and it ends up being far from ideal. Stress becomes the norm, and friction with the rest of the family causes even more stress. Admin is a critical part of keeping your new business on track and you can’t do this on the kitchen table.

    If you really have no alternative, find a way of working that allows you to pack and unpack everything quickly and easily, and agree a schedule for using the shared space… and stick to it.

    Most people are now okay with hearing the odd family background noise in calls, because CoVID led to a home-working explosion, so don’t over-stress if you are stuck with the occasional dog barking when calling a client; however, if you can avoid it, I suggest that you do.

    Further reading

    This is part of our series of articles about Getting Started – see more here

    Starting a Business – Part 3 – core skills

    Starting a Business – Part 3 – core skills

    by | 23 Nov, 2022 | Getting Started

    Introduction

    If this is your first business, you’re in for exciting times, stressful times, and a learning curve.

    Regardless of what you will be doing as a business, there will be skills that you will need in order to stay on track. The trick is knowing which.

    Following on from our 2nd part in the Getting Started series we’ll be looking at the core skills… what you need and what you don’t.

    Core skills - hairdressing

    Which core skills do you need?

    In my experience, small business owners are generally resourceful and driven, and because the business is their baby, they get involved in everything. This is a mistake that I fell into.

    Some context

    My business is selling machines and technical solutions to electronics factories; I’m a sales guy and an electronics technical guy… I’m not a bookkeeper or an administrator. I’m not a mechanical or electronics designer, nor am I a draughtsman. I’m not a software engineer, nor am I a materials scientist. All of these roles I can perform to different degrees and to a level that would satisfy the needs of my business, but they are not what my business is about and are not what I consider, with the benefit of hindsight, core skills.

    I tried to do everything for about 18 months but soon realised that everything not involved in selling was a distraction, so I began to outsource, and it was probably, the best business decision I have made in the last 19 years.

    If your new business is going to be an accountancy or bookkeeping provider clearly, you will not need to outsource your bookkeeping. Likewise, a web design business will not outsource its web-related stuff, and an IT business will plan, install and manage its own IT.

    Of course, you will need to learn about the financials, insurance, business law etc. but not all at once.

    If none of the above examples are what you are going to be doing, you will need these skills in your business and taking the time to learn, either on a course, YouTube, or trial and error, will be a distraction from your core business, so outsource it.

    Outsourcing examples

    Outsourcing means sub-contracting/subbing-out certain tasks in your business and is a great way to make the most of your time and money to get things done whilst you focus on your core business.

    Let’s say that you are starting a hairdressing business, to use a popular example. You will need:

        • business cards
        • hair product suppliers
        • consumables suppliers
        • email account
        • computer
        • social media and maybe a website
        • advertising
        • insurances
        • accounting
        • payroll (assuming LTD business and PAYE)

    How much of the above is really about hairdressing? I’d suggest finding, setting up an account and buying from the hair products and consumables suppliers. Everything else is a distraction from your core business and, remember, this is going to be your baby… you will want the best you can get for it, right?

    Let’s look at business cards

    Aside from the skills, do you have the required software tools to create a logo? Something that will be your primary ambassador in all domains needs to be done well.

    With my first logos, I spent several days trying to come up with a design whilst also learning about the program I was using AND the specifics that a printer needs to be able to print the cards and flyers for me (colour separations, resolution, colour formats, bleed areas, Pantone codes on coated and uncoated paper etc.). Absolutely nothing to do with selling electronics test equipment!

    I now use many logos across different ventures and I never design them myself. I will look at something like Fiverr. To give another example. The logo for this website cost £43 and I had three different versions that I could choose from, as many reworks as I needed until I was happy, and all the correct files for online, printing, email etc. A cost that is less than one hour of my time!

    Accounting and payroll

    My accounting gets a little complicated as I export and import and work in multi-currency; however, my total accounting bill, including bookkeeping, accounting, stock-control, year-end submissions, PAYE, and VAT is less than £2,000 per year and all done by fully qualified people. In real terms that is £38 per week. Coming back to a hairdresser, that is around one haircut per week (maybe two depending on your area), but I am managing a lot more than you will need as you don’t import and export haircuts!

    The concept is that you may be thinking that you are saving money by doing as much as you can yourself, but the truth is that it is false economics Outsourcing is a way to benefit from the core skills of other businesses at a minimum cost to your business.

    Come up with a brief for your business appearance (description, target customers/service, colours [maybe]) and spend a few hours on it. Run it by some friends and family and then outsource it to a professional. As this is being done in parallel, you then have time for something else… more hairdressing appointments or family.

    Do you need to advertise?

    Staying with the concept of starting a hairdressing business. Most hairdressers do not have enough friends, family, and acquaintances to support a full-time business.

    Some basic statistics

    On average, men have a haircut once every five weeks, and a men’s hairdresser will see between 12 and 20 clients per day or 60 to 100 per week.

    Given the time between haircuts, a hairdresser will need a regular and steady flow through their business of 500 different men for the average hairdressing appointment, which last 15 to 20 minutes. Clearly, there will be shorter and longer times, subject to the client and the service, but the average is a client-book that is consistently around 500 people!

    For women, in 2017 the average in the UK was 6.2 weeks between appointments, with a hairdresser averaging 12 clients per day or 60 per week. This translates to 372 clients on your book, consistently.

    The only way that these numbers can be achieved AND maintained is through advertising, but advertising is a skill in it’s own right, particularly modern adverting with social media. It’s very, very easy to lose a lot of money.

    The trick is to utilise the core skills of a specialist business, in the same way that they would, probably, use a hairdresser instead of cutting their own hair!

    I know of a local business that takes a modest monthly retainer (some ask for ridiculous money) and they will take care of all social media, including paid advertising for me. A hairdresser, as our example, would benefit from exposure on Instagram, Facebook, Twitter etc. but how many startups would think of using Pinterest? Using a specialist, in this case, could benefit our hairdresser greatly. It’s a core skill that is accessible through outsourcing.