If your home doesn’t have room for an office or stock storage, it might not be the most suitable place to launch and operate a new business. You may also want to keep the exciting venture separate from your personal life, helping protect your mental health and finances.
Yet, you might be unsure about the best steps to take to get the new company off the ground. If so, read the following advice on how to start a business outside the home.
Hire a Storage Unit
In a perfect world, you would move into a commercial office space when starting a new business. However, it’s important to watch every penny you spend to ensure your company’s survival. Rather than running the business from your home, you always have the option to hire a self-storage solution.
For example, many new companies in various industries store stock, documents, tools, and other items in a unit. Visit holdstorage.co.uk to learn about its storage spaces, which include fully alarmed units and CCTV for 24-hour security and free move-in van hire.
Select the Right Business Structure
Before you make your first sale or sign a client, you must choose the best business structure for your company. If you’re eager to keep your personal finances separate from the business, you must avoid setting yourself up as a sole trader, as you will be personally liable for any compensation claims against the company.
Instead, register your business as a limited company at Companies House to protect your personal finances. This ensures the company is financially liable for any claims, safeguarding your income, savings, and assets.
Set Up a Business Bank Account
Keep your personal and professional finances separate by setting up a business bank account, helping avoid confusion and financial repercussions.
To open a business bank account in the UK, you’ll need:
- Proof of ID and address for all business partners and directors
- Your Company Registration Number (if you’ve set up a limited company)
- A Certificate of Incorporation
- Your Unique Taxpayer Reference (UTR)
- An Estimated Turnover Forecast
Apply for Small Business Rate Relief
UK companies operating in a single property have a legal right to apply for Small Business Rate Relief from their local council. If your revenue is below £12,000, your company is entitled to 100% relief, meaning you will not pay a penny in business rates.
If your business generates revenue between £12,001 and £15,000, you could be entitled to a smaller percentage of Small Business Rate Relief.
Learn About UK Staff Regulations
If you plan to hire one or more employees when starting a new business outside the home, you must learn about and adhere to various UK staffing regulations. For instance, you must register as an employer with HMRC to deduct Income Tax and National Insurance from your team members’ wages correctly.
Also, you must enrol your staff in a workplace pension scheme, contributing a minimum of 3% to their fund, and take out Employers’ Liability Insurance to provide your company with financial cover.
