Run a home-based business
Overview
This standard is for entrepreneurs who run a home-based business. You can work from home while you build a business before moving to separate premises or work from home long term to suit your finances or lifestyle. There are many challenges to running a home-based business, including getting permissions, insurance, paying business rates and complying with relevant laws and regulations. Running a home-based business involves working in a way that best fits in with the needs of your business and your private life, projecting the level of professionalism that is needed for your business and managing the expectations of your family, friends and customers. You may need to pay the business rates on the part of your property that you use for your business.
You might need to do this if you are:
setting up a new business or social enterprise;
running a business or social enterprise from home or remotely;
moving from your existing businesses premises to work from home.
Performance criteria
You must be able to:
- identify the business rates you need to pay on the part of your home used for your business
- research and identify the relevant permissions you require for running your business from home or remotely
- identify whether you need licences to run your business from home or remotely
- buy suitable business insurance to cover the work that you carry out at home
- identify the working hours that best suit you and your business
- include your business costs in your annual self-assessment tax return
- maintain records of eligible expenses for claiming, such as council tax, heating, lighting, phone calls and broadband
- identify whether you need to pay Capital Gains Tax on the part of your property you use for business when you sell it
- minimise interruptions and disruptions to your business activities
- maintain work and personal life balance
- choose places to meet your customers, colleagues and stakeholders
- ensure the facilities and equipment comply with relevant laws and regulations
- seek advice about running your business from home when you need it
- display any required signage related to your business
- join networking groups
- comply with the legal requirements relating to running your business from home or remotely
Knowledge and Understanding
You need to know and understand:
Yourself
1. your working hours and patterns of activities
2. how to stay focused and motivated while working from home or remotely
3. how to balance your work and personal life when working from home or remotely
Business focus
4. the professional image of your business and how to maintain it when working from home or remotely
5. the business insurance and permissions you require for running your business
6. the business rates you need to pay and how to get a rateable value as part of your home
7. the factors that may affect your business operating from home or remotely
8. how to avoid interruptions and disruptions
9. the sources of information for running your business from home and remotely.
10. the benefits of your business being remote or home-based as opposed to office based
11. the message facilities and phone call options outside your working hours
12. the storage, filing, workstations and other equipment you need for running your business from home or remotely
13. the technologies you need for working from home or remotely
14. the ways to protect and secure your work areas, computer systems and equipment
15. the suitable places for meetings your customers, colleagues and stakeholders
16. the collection points and deliveries for your business, if relevant
17. the benefits of networking when running a business from home or remotely
Law and regulations
18. the legal requirements relating to running your business from home or remotely
19. the signs that need to be displayed to comply with relevant laws and regulations