Can You Run A Business From Home in the UK?

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Home-based businesses contribute £300 billion to the economy and over 2.9 million companies are being run from home. If you want to be your own boss and offer a product or service to others, you may want to start like many other entrepreneurs in the United Kingdom before expanding.

Starting a business from home isn’t as easy as brainstorming your ideas and starting to promote yourself.

If you want to run a business from home, we’ll help guide you through the process of getting started and share some tips to help you succeed.

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Can You Run A Business From Home in the UK?

Yes. You can run your business from the comfort of your home, but you need to do more than register your business. GOV.uk outlines that you need to do the following:

Permission

If you want to run your business from home, you may need permission from your landlord or mortgage provider. Landlords may not want their properties to be run as a business, but you may also need permission from:

  • Your local planning authority. If you need to alter your home, the planning authority will need to grant permission for major alterations.
  • Your local council. Businesses that have a lot of foot traffic or if you want to promote outside of your home, contact the local council to get permission. Companies should not disturb your neighbours, and you must meet health and safety laws.

If you offer online services, home-based services or engage in online retail, you should easily receive permission to operate your company.

Insurance

Home insurance is unlikely to cover your:

  • Equipment
  • Inventory
  • Customer injuries

Obtaining insurance for your business may or may not be required, so contact an authorised insurer to verify.

Business Rates

Read through the GOV.uk guide on business rates because you may or may not need to pay business rates. If you only use a small portion of your home for business or sell goods by post, there’s a good chance that business rates will not apply to you.

If you’re running a business that requires a licence, you will need to obtain one. For example, if you’re a loan and financial service provider, run a childminding company, run a pet shop and so on, you will need a license.

Pros and Cons of Running a Business From Home

Starting a business from home takes a lot of effort and commitment. You’re becoming an entrepreneur, but there are pros and cons that you need to consider, too. Pros include:

  • Startup costs are lower
  • Fewer daily expenses
  • You’re running the show
  • You can work on your business as much or as little as you want

Cons include:

  • Difficulty separating work and home life
  • Having to dedicate a portion of your living space to your business
  • Difficulty scaling if it involves hiring more staff or will require more space

If you want to run a successful business, the tips below will help.

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Top Tips for Running a Business from Home

Running a business from home has its perks and conveniences, but ultimately, it is still a business. To succeed, you need to establish procedures, workflows and management processes.

While every business is unique and will have its own set of challenges, these tips can help you keep things running smoothly.

Choose the Right Type of Business

Aspiring entrepreneurs can find countless business ideas from home, but not all will be viable or practical.

It’s important to remember that you will be actively running and growing your business every day. Choose something that you are passionate about and will keep you motivated to continue with your mission every day.

Of course, passion is only one piece of the puzzle. There may be several business-from-home ideas you are passionate about but are not practical for your space.

For example, if you want to offer a service delivered in person, such as childminding or beautician services, consider whether you have enough space for clients and the equipment you need to carry out the service. 

Even online services have their own challenges to consider. For example, if your area has poor broadband service, it may limit your ability to serve customers or clients.

Choosing the right type of business will be the key to success if you want to run a home-based business. 

Work with a Business Coach

Running a business, even when it’s home-based, is challenging. Having an outside perspective and guidance from an experienced mentor can make all the difference in your success.

A business coach can work alongside you to:

  • Understand and overcome challenges
  • Set and achieve goals using proven strategies
  • Hold you accountable 
  • Develop and implement new systems and procedures

External support may be helpful if you are having difficulty setting business goals, navigating challenges or staying competitive.

Every entrepreneur can benefit from coaching, regardless of their industry or where they run their business.

Consider Your Neighbours and the Potential Impact of Your Business

Certain types of businesses can be disruptive to neighbours. You may have clients coming and going throughout the day, or your operations may be noisy and messy.

Consider how much disturbance your home business may cause, if any, and how it might affect your neighbours.

Create a Schedule and Workflow - And Stick to It

Working from home offers many advantages, especially if you are running your own business. However, it’s easy to get distracted when working in a home environment.

Structure your work day to maximise productivity. 

  • Create a schedule for starting your work day and ending it.  
  • Have a dedicated space to focus on your work.
  • Invest in tools that will aid in productivity, such as project management tools.
  • Take regular breaks to stay productive.

A Home-Based Business Can Help You Achieve Financial Freedom

Launching and running a home-based business can help you achieve financial freedom and create your dream lifestyle.

While the vision starts with you, working with a business coach can help you achieve growth and improve profitability.

At ActionCOACH, we have helped thousands of business owners around the world improve their efficiency, increase their bottom lines, build better teams and ultimately, build their dream lifestyles. 

Contact us today and find your next steps in growing your home business or you can find more business advice in our learning centre.

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