How to run a business from home

6. Keep on top of finances

Every penny counts when starting out and your initial cash flow may be unpredictable, so manage your budget carefully. 

If you aren’t a numbers person, consider paying an accountant to help with bookkeeping and tax returns.

Always keep a record of your incoming and outgoing revenue, and save all your receipts. 

Be aware that anyone who’s self-employed pays National Insurance contributions on profits over £6,475.

Kitchen table start-up tip: It’s wise to build a nest egg before starting a business, and remember to put money aside for tax bills such as VAT or corporation tax. 

If you’re a sole trader, have two bank accounts to keep business and personal spending separate – by law, a limited company must have its own business bank account.

7. Know your customers

If you’re planning to sell products from home, it’s especially crucial to understand exactly what your customer wants. 

Talk to people and listen to their feedback – everyone from your best friend to people attending your yoga class could be potential customers, so share your ideas and gather insight. 

Adapting an original idea may prove worthwhile in the long run.

Kitchen table start-up tip: Aim to provide a great, not just a good, customer experience. You’ll have a better chance at getting recommendations and repeat business.

8. Don't try to do everything yourself

Although you may set out intending to run your entire business on your own, not every entrepreneur has the necessary skills to be an IT specialist, finance expert and marketing guru. 

You may simply not have the time.

Sometimes it makes business sense to get additional help with admin tasks, so you can concentrate on craft-making or all-important networking. 

Rather than risking burnout, seek the services of a virtual assistant. 

The Society of Virtual Assistants allows you to search for suitable candidates.

Kitchen table start-up tip: If your home is tight on space, outsource your product storage and order fulfilment. You’ll also save time otherwise spent standing in post office or ParcelShop queues.

9. Find ways to socialise and network

Sitting by yourself at your kitchen table day in, day out can get lonely. 

But being a one-person business doesn’t mean you can’t have colleagues – of sorts. 

You may not be in a communal kitchen chatting about last night’s telly, but you can network and link up with like-minded entrepreneurs online.

Join networking groups and forums, and introduce yourself to others on LinkedIn. 

Once lockdown restrictions are eased, you’ll find local career events to attend in person on platforms such as Meetup.

Kitchen table start-up tip: You can find additional networking support via the British Chambers of Commerce, an organisation that helps connect businesses.

10. Understand it's a learning curve

Even the best-laid plans can go awry, so from the onset, accept that your journey to success may not follow exactly the same route you’ve described in your business plan. 

Situations outside your control may intervene – Covid-19 scuppered thousands of great plans – but also new opportunities may arise.

All business ventures have good days and bad, but if you stay motivated and learn as you go along, you’ve every chance of success. 

For more inspiration, see our Dragons’ Den success stories.

Kitchen table start-up tip: A mentor can provide crucial support in the initial stages of setting up a new business. When you apply successfully for a Start Up Loan, you get free mentoring for 12 months to help your business succeed.