How excited are you to start a business right from your home office? Many people have gotten used to working from home and want to keep it that way for most of the week. Some people are so determined to keep working remotely that they’re exploring options like the gig economy or even starting their own home-based businesses.
The Office for National Statistics reported a surge in new company registrations in the second half of 2020. Many new home-based businesses popped up as people stayed home during the pandemic.
So, if you’re thinking about turning your passion or side hustle into a real business, now is a great time to do it. We鈥檝e created this guide to help you set up for success.
Step 1: Define Your Business
Turning a hobby into a business is a big leap. You need to start by clearly defining what your business will do. You need to be specific. What types of cakes will you sell? Will they be novelty portrait cakes? Do you have a unique cake that could be a game-changer? You need to fully understand what you鈥檙e selling and why people would want it.
Step 2: Develop a Business Plan
Once you know you have a solid business idea, it鈥檚 time to figure out how your business will operate. You’ll need to decide on the legal structure: sole trader, private limited company, or public limited company. Most people start as sole traders before potentially forming a limited company.
Regardless of the structure, you鈥檒l need a business plan. This keeps you focused and is essential if you need financial support. Your business plan should be detailed and include different aspects such as executive summary, scope of your business, business model etc. Your business plan not only maps out your road to success but should also be updated as your business evolves.
Step 3: Get Your Office Set Up
Working from home has its challenges. To succeed, you need a dedicated workspace. Minimize distractions by setting up a specific room for your business and getting the right equipment.
Step 4: Protect Your Business
Insurance is crucial when running a home-based business. Different types of insurance might be needed depending on your business such as product liability insurance, public liability insurance etc.
Step 5: Register Your Business
Before you kick off your business, you鈥檒l need to register it. Every new business must register with HM Revenue and Customs (HMRC). If you鈥檙e starting a limited company, you also need to register with Companies House.
Registering as a sole trader is quick and easy. You can apply online or by post with just your personal and business details. Setting up as a limited company involves registering through Companies House, providing information on directors and shareholders, and documents of formation.
Once registered, you鈥檙e ready to launch your business and start making your entrepreneurial dreams a reality.
