Is running a business really for you?

Many people start their own business because they hope it will provide more income. Others seek greater flexibility to balance work with family life. However, the reality of running your own business can be a shock.

Working for yourself

To fund your new business, you might have to invest personal savings or use your possessions to guarantee money you borrow. Alternatively, you might borrow money from friends or family. You and they need to consider the full implications if the business were to fail and you couldn't afford to repay them. 

 Running a small business is unpredictable – starting one even more so. It can take years to become profitable, no matter how good your idea. At first, you might not be able to draw a wage, which might mean relying on someone else’s income (i.e spouse, parent, etc). The longer this goes on, the more likely it could place strain on the relationship.You must be prepared to accept a lower wage or even none when establishing your business. You might be fine with that – but what about others who will be affected?

You’ll probably have to forgo perks, pension, holidays, overtime and even sick pay. Many small-business owners will tell you they could earn more money and have an easier life if they worked for someone else.

Being your own boss 

You must be prepared to work long hours. The daily demands of running your own business can overtake your life, as the lines between home and work become blurred.

You might have to give up your evenings and weekends. Many business owners use such times to catch up on admin tasks – some of which can be dull and draining. You might have to do this while the kids are making a racket or you’re being pressured to take care of domestic chores.

And don’t expect time off. Many people who work for themselves can’t take four weeks' holiday each year. You might have to give up social activities you enjoy, for a time, at least. Friends and family might not get to see you as much as you or they would like.

It’s easy to get carried away with the attractive aspects of starting a business, but the reality is you’ll probably have to be your own receptionist, admin assistant, delivery person, cleaner and caretaker, too, initially, at least.

The responsibility of running your own business

Running your own business will inevitably involve greater responsibility. You’ll have to make many important decisions, which creates pressure, especially when your livelihood and possibly that of your employees is at stake. You might also have a family to support – what if things go wrong?

You might not always be able to seek advice, which can leave you feeling isolated. Family and friends can be a great source of support – and being able to share your trials, tribulations and triumphs is important. Of course there are free professional sources of support available, so be sure to use them.

Starting your own business remains one of the most exciting decisions you can make. The rewards – financial and otherwise – can be great, as many millions of people in the UK have found out. But there are implications you need to consider carefully.

Running your own business can be a roller coaster. There’ll be days when you wonder why you did it – and others when you wouldn't have it any other way.

http://www.startupdonut.co.uk/startup/start-up-business-ideas/is-running-a-business-really-for-you-

Q&A: Setting up a home-based business

Starting your business from your home can be one of the most effective ways to keep your overheads down. Emma Jones of Enterprise Nation and StartUp Britain answers some questions about how to get it right.

Is starting a business from home still popular?

It’s the most popular option. More than 60% of people who start a business are now doing so from home. From fashion design, IT and catering through pet care and arts/crafts to accountancy and legal services – you name it – it’s being run as a business from someone’s home.

What are the key advantages of operating from home?

It’s low cost and therefore less risky, because there aren’t any expensive premises overheads. You can also claim for a percentage of your domestic bills, for lighting, heating, telephone calls, etc. A home office means no commute, so you save money and time. Cutting out a daily commute of 60 minutes each way frees up one whole extra day each week. That day can be spent earning money or with family/friends or enjoying leisure time.

Can a home-based business employ people?

Absolutely. The same employment rules apply and interestingly, because of such regulations, some home-based businesses are outsourcing and sub-contracting, rather than taking on staff. If you have people working in your home premises, you must carry out a proper health and safety risk assessment and be sure to find out about employment law.

But can’t the lines between work and home become blurred?

Possibly, if you don’t remain disciplined. People need to think about how the business will affect their home life – and vice versa. I recommend creating a dedicated work area, possibly a spare room, garden shed, attic or space under the stairs. This way, when you’re in that space everyone knows you’re working. And you can close the door at the end of the day and leave work behind.

Running a home-based business isn’t an easier option?

Not necessarily, no. When you’re starting out, you’ll need to put in the hours if you’re to make sales, keep customers happy and stay on top of your admin. Plus, there will be domestic responsibilities to take care of. Basing your business on something you enjoy helps. That way it doesn’t feel like work so much.

What other legislation applies to home-based businesses?

To run certain businesses, you must seek a licence. Also, you’ll need planning permission if you want to make significant changes to your property. This could be opposed. You can also run into problems if you become a nuisance to your neighbours, for example, through strange smells, excessive delivery or customer vehicles. And whether yours is simply a small sole trader business, or even a part-time venture, you must inform HM Revenue & Customs or register with Companies House. All earnings must be declared, of course.

What about insurance?

You can add a business element to your home insurance – it doesn’t cost much extra. It’s better to be protected. You should also inform your mortgage provider or landlord, as some agreements prevent people from running a business from their home without first seeking permission.

Is there any need for additional security?

As long as you already have good quality locks on doors and windows, maybe an alarm, you should be fine. You might need to take additional steps, if, for example, you’re planning to hold valuable stock or handle cash.

Sounds like you enjoy running a home-based business...

I do. Every day is different and one of the most wonderful things about being your own boss is the feeling of being in control, yet you still don’t quite know what tomorrow will bring.

http://www.startupdonut.co.uk/startup/business-premises/q-a-setting-up-a-home-based-business 

10 golden rules of home business

Thinking of setting up a home-based business? Intended to help you succeed, here are 10 tips from one of the founders of StartUp Britain and home-based business expert Emma Jones

1. Base the business on something you enjoy – when your hobby/passion/skill becomes your full-time job, it never really feels like work.
   
2. Have a plan – prepare a basic business plan to set out your vision, describe your market and explain how you propose to reach out and sell to that market. Include sound financials and review the plan every six months or so.
3. Find dedicated space – create space in your house that is your workspace. When in that space, family and friends should know you’re in business mode, plus, you can walk away at the end of the working day. Invest in a good desk and chair, because you’ll be spending quite a bit of time at and in them.
4. Create a professional front door – when customers come calling, be sure they’re met with a professional welcome. This applies from the way you answer calls, to your website, company stationery and even the places in which you choose to meet clients.
5. Make the most of social media – the home-business community has warmly embraced tools such as Facebook, Twitter and LinkedIn. They are free to use and act as business development channel and a virtual water cooler for the moments when you miss the banter of an out-of-home office.
6. Become an expert – set yourself up as an expert in your field by blogging/tweeting about the subject, writing a report, publishing a book or hosting an event. Being an expert gives credibility and with that, comes customers.
7. Never stop learning – part of becoming an expert is continually picking up intelligence from those around you. Keep an eye on what others in your industry are doing, read about successful entrepreneurs and tune in to trendspotters so you can prepare for new market opportunities.
8. Get out of the house – attend networking events, work from the local café, sign up to a personal development course. It’s good to get out of the home office, but be sure you can still be contacted and respond via your mobile/laptop/webmail, etc. This is your “road warrior kit”.
9. Do what you do best and outsource the rest – to grow the business, focus on the core product of the company and subcontract non-core tasks (e.g. admin, accounting, PR, fulfillment, e.t.c) to others.
10. Follow the golden triangle – to keep the business in balance, spend roughly a third of your time on each of three key things: customer care, business development and admin. That way, you’ll have a smooth-running business with happy customers and new income streams on the way.

http://www.startupdonut.co.uk/startup/business-premises/10-golden-rules-of-home-business

How to Start a Cupcake Business from Home

Are you interested in starting a Cupcake business from home? Do you need a sample cupcake business plan template? Do you have deep passion for making CUPCAKES? If you answered YES to any of the above questions, then I advice read every word on this page.

 

You see, everybody loves cupcakes; my humble self included. Why? The reason is because they are portable, they taste great and come in different shapes, sizes and flavor. Sometimes, I like to think of cupcakes as a work of art because of the different designs and impressions that can be created with a cupcake.

Well, the above are personal sentiments people share about cupcakes but the information that matter to you as entrepreneur is this: “Cupcakes are in great demand daily.” Cupcakes are used for different occasions (such as Christmas, Valentine’s Day, Easter, Thanksgiving Day, Halloween, etc), weddings, baby showers, anniversaries, birthdays, children’s parties and may be served as dessert at home.

Have you ever thought about starting your own cupcake business and turning your passion for baking cakes into a money making venture? Then hop in here. Let’s teach you how.

 

Starting a Cupcake Business from Home – Sample Business Plan Template

 

1. Perfect your cake making skills

The first thing to do is to learn how to bake or if you already know how to bake, then you should perfect your baking skills. You can register for cake making classes or workshops with well known bakers around you. You can also learn through the internet or by reading books on how to make cupcakes but it is advisable that you register for practical training as this would help you learn and perfect your skills faster.

 

2. Learn how to decorate cupcakes

The Centre point and beauty of cupcake making is in the decorations. The decorations are what make cupcakes look so yummy and attractive. To be successful in your cupcakes making business, you have to know how to decorate. You must also be creative and versatile with your decorations.

You are most likely going to learn how to decorate when you register for cake baking classes but if you are not, then you should also register for decorating classes. You should also surf the internet regularly to learn new trending and interesting designs.

3. Develop your recipe

Cupcakes have to look great and taste great to attract customers. If your cupcakes taste great, then there’s a huge probability that a customer would return and even bring along more friends and recommend you to others. So strive to develop a unique recipe that your customers would love.

You may also consider making unique combinations and varieties like a strawberry cupcake with vanilla frosting. When you start out, you can keep trying out different flavors until you are able to figure out the bestsellers and then focus on them.

4. Choose a creative cupcake business name

What will you call your cupcake making business? Well, that’s left for you to decide. However, whatever name you choose, you should make sure it’s catchy, memorable and brand-able. You can scout the internet for creative cupcake business name ideas.

5. Carve a niche for yourself

Now that you have to determine what kind of cupcakes you want to be making and who your target customers would be. Would you like to focus on making cakes for parties like children’s parties or do you want to bake cakes for supply to restaurants and supermarkets who would then resell them to their customers? It is important to decide your business strategy before you start.

6. Check out your competitors

Of course, you are not the pioneer of cupcake making business. There were others before you. But how do you beat them? How do you make your business stand out from theirs and possibly woo some of their customers to your side?

Well, the only way you can do this by conducting feasibility research, studying your competitors and doing a SWOT analysis on them. Buy some of their cupcakes and have a taste. What makes it better than yours? What is missing in your own recipe? This would help you develop your own cakes into a much better version of theirs.

However, if there is nothing distinct about their cupcake taste; then you can beat them through tactical marketing and strategic customer service delivery. You should also study their prices as a guide for you to determine your own prices too.

7. Purchase the necessary equipment

Oh, I almost forgot! You definitely won’t be baking and decorating fabulous cupcakes with your bare hands. You would need the right tools and equipment. Examples of such equipment you need include:

• Cupcake pans
• Oven
• Muffin cups
• Mixer
• Cupcake liners
• Cupcake display stand
• Cupcake wrappers
• Cupcake boxes and trays.

You must also make sure you have the necessary packaging materials to transport your cupcakes from place to place. You should also invest in boxes and bags that have your business name and contact information on them as another way of advertising your business.

8. Give out free samples

One way to create the necessary publicity for your cupcake business is to bake free samples and give them out. If a friend is throwing a party, you can bake your cakes and give them out as your own contribution to the party.

You should also make sure your cupcakes are labeled with your name and contact information on them so that when people taste them and they like them, they would know how to contact you. This is called “Product Branding.”

 

9. How much would you sell your cupcakes?

Another important step to take is to decide on an appropriate price for your cakes. Your cupcakes should be properly priced to bring you profit, as well as help you stay ahead of your competitors. Do not forget to consider all overhead costs, logistics and expenses when determining your prices.

10. Take your business online

In today’s business world, it is impossible to rule out the power of the internet. One way to get your business out there faster, and reach out to more customers is through the internet. You can open an online store for selling your cupcakes. You may take orders through your website and have them delivered to your customers. You may also ask your customers to write reviews on your website as a way of attracting more customers.

11. Continue to promote your business

When you have finally launched your business, do not just relax. Continue to promote and advertise your business. Take pictures of your cupcakes and put them on social networking sites like Facebook, Instagram and Twitter, as a way of attracting more customers. You should also offer special promotions from time to time like buy one, get one free and discounts.

12. Don’t forget your Cupcake business plan

Yeah, your business plan is the pilot of your business. What are your goals ? How much are you looking at generating in the next 5 months? How do you plan to outperform your competitors? How long will it take you to breakeven and how many cupcakes do you need to sell a day to cover your expenses and turn in a profit? What are your expansion plans? What is your marketing strategy?

Writing a solid business plan gives you a sense of direction so you should not forget to draft out a business plan that would contain all your goals and vision for your business.

 

13. Expand your business

It is your duty as an entrepreneur to look for ways to grow your business. Consider expansion options like opening your own cupcakes restaurant and expanding to different areas and states.

http://www.mytopbusinessideas.com/starting-cupcake-shop-home/

So you want to start a food business?

Do you dream of starting your own food and drink business? All you need is a good idea

 

                       

Hands up if you’ve ever thought, “I’d love to set up an artisanal pickle-making operation, with an organic smoothie bar on one side; and on the other, a row of rehabilitated ex-prisoners making sustainable baby food from local ingredients…” and then gently drifted off into a daydream?

As someone who’s obsessed with food as well as all things entrepreneurial, I’m always cooking up original (ahem, sometimes too original) food and drink-related business ideas, as I’m sure many of you have – especially after watching an episode of The Apprentice or the Dragons’ Den.

Give up the rat race

I hear about more and more people leaving high-flying careers in finance, law and other prestigious and well-paid sectors to set up in the food and drink industry. Freedom from the boss or office politics, working the hours that suit, having an opportunity to express one’s creative abilities and genuinely wanting to provide a service where there’s a gap in the market are all deciding factors.

Of the very many food and drink businesses that I’ve heard about in recent months, it’s the unique and innovative housebites,designmynight  and My Secret Kitchen that immediately caught my attention, and got me excited and curious.

Housebites   

The aim of this new web business is to revolutionise the takeaway market. You order just like a normal home delivery, and chefs in your local area cook the food and deliver it to your door. Exciting yet simple – why has nobody thought of it before?

The chefs are carefully vetted, and are either experienced, enthusiastic home cooks or people who’ve worked in top restaurant kitchens. For instance, in my area, on the day that I checked, I could order beetroot carpaccio with goat’s cheese and pomegranate dressing, or Persian saffron ice cream. Not your standard takeaway then.

Housebites’ CEO Simon Prockter and his co-founders were behind successful websites like Bebo and SpeedDater. What inspired them to come up with this ambitious idea? “A very bad experience from a market leading company,” says Prockter. “My order was delivered by a motorcycle courier with the helmet still on, who clearly had no part in the process and was walking away before I’d barely opened the door. The food itself was ok, although was clearly re-heated.”

“It set me thinking about many of the problems with takeaway”, continues Prockter. “You don’t really know who’s cooking your food or how good they are… You rarely… have a say in how the menu could be improved. And service is questionable if something goes wrong. After a long weekend of looking into the solutions to these problems, housebites was born.”

Housebites has only just launched in London. More areas are added every week, and the business will go nationwide in early 2012. If you’re a great cook, you can apply to be a chef. 

Designmynight

Set up at the end of 2010, this is London’s first price comparison website for pubs, bars and clubs. Designmynight gives you the insider track on new and established drinking venues – with a particular emphasis on budget-friendly places – including special offers, happy hours and guest lists. A free concierge service can provide personalised help with organising that extra-special night out.

Easy to navigate and kept continuously up to date, it’s no wonder the site has been enthusiastically received by customers. Co-founder Nick Telson explains, “Getting emails from our users has been the best part… It is this positive feedback that makes the job worthwhile.”

As for the future, he says, “There are a lot of plans afoot… Once we have perfected the model, we aim to take the site nationally and internationally… We are also launching designmynight deals in November… No… fish pedicures, waxing and teeth whitening; only deals on restaurants, bars, clubs… etc.”

My Secret Kitchen

Established in 2007, this award-winning business is “the UK’s first nationwide food tasting company”. It sells its own range of condiments, dips, sauces and baking ingredients through tasting events (and also its website). The wide selection includes imaginative products like beer bread mixes, artichoke pesto, oak-smoked rapeseed oil and Great Taste Award-winning balsamic reduction.

You can host tastings in your own home by inviting your friends along, providing a few drinks and getting a party atmosphere going, while their trained consultants prepare all the food and share several recipe ideas for each of the products. If you enjoy being a host, you could even go a step further and become a consultant. It’s the culinary equivalent of a tupperware party, a ‘try before you buy’ idea with a twist.

Co-founder Phil Moran says: “People in the UK are linking good food with good health, and {an interest in} food provenance is creating more and more home fruit and vegetable growers, and the downturn in the economic climate has meant ‘dining in’ is the new ‘dining out’. With all this in mind, it is a great time to be involved in the food and drink industry, particularly with artisan, unique products.”

A good idea

Inspiring words indeed. Speaking to friends, there seems to be no shortage of business ideas – from a telephone helpline that guides you through every stage of the cooking process, to a bespoke spice-blending service, someone, somewhere is thinking about it.

So, what is YOUR fantasy food and drink business idea? What delicious venture would you like to see become reality? And most importantly, are you brave enough to take the plunge? 

 

http://www.lovefood.com/journal/features/13215/so-you-want-to-start-a-food-business

Starting a Food Business

Get Your Product Idea Out of Kitchen and on to Your Consumer’s Plate

 

Reading about Foods and Beverages on this site might make you “hungry” for starting your own food business. (Note: I will use food to cover both edibles as well as beverages). Over series of articles I will highlight do’s and don’ts garnered from my 35 years of experience in retail consumer foods.

Starting any business in today’s environment is difficult and the food business has an advantage over others businesses; we all have to eat! We also have different tastes and desires in our diets which allows very “niche” based food products to succeed. Food is an idea many people pursue as a business. Besides the fact we love to eat, food is easy to prototype; you can do it in your kitchen inexpensively. You also have the enjoyment of sampling your friends and making them happy with the wonderful recipe you took from concept to plate.

 

 

 

The Fancy Food Show is run by the National Association to the Specialty Trade NASFT and occurs twice a year. It is an amazing array of the most fabulous specialty foods both domestic and imported. For anyone thinking of pursuing their passion in food, this show is a must see. Over a three day period you will have a firm foundation of what products are currently in distribution and new products not yet on the shelves. It is fun “visual” market research helping you decide if your food idea is a real opportunity providing a unique offering to the consumer or one of many “me too” items. If you see too much competition, then you know it is time to go back to the drawing board. That does not mean you give up, it tells you to consider a new idea.

Is passion enough to make a new product a success? No. That is where practical passion comes into play.

Most food entrepreneurs are high on passion and like most people new to business have a large degree of “I don't know what I don't know”. You probably think that all you need is a great tasting product to get on the shelf. Well, that sounds logical because most of us like great tasting food. In the food business great taste is akin to a car having brakes! When you buy a car you expect that it has brakes and you do not make your purchase decision based on this attribute of the car.

Great taste is an expectation on the consumer’s part. Technically you can say it is a selling feature but in reality it is an expectation the consumer has when they pick the product off of the shelf.

 

 

 

Newcomers to the Consumer Packaged Goods (CPG) do not realize that this is a distribution channel intensive business with many gate keepers along the way. Gatekeepers in the business are buyers, merchandisers, distributors and brokers that you have to deal with one step at a time to attain your goal of getting on the shelf. Additionally the business of food has a high degree of complexity that newcomers don’t’ know about, creating hurdles that slow you down or stop you in your tracks.

The competition, both large and small are becoming very Entrepreneurial... they are getting really good at coming up with ideas, determining if the idea is a profitable opportunity and then successfully executing great shelf strategy. In a recent article New Products that are successful in spite of the economy, I highlight the recent The IRI annual Pace Setter report that shows less than 20% of new products exceed $7.5 Million in sales annually within 18 months of their introduction.

The IRI report statistic makes it clear that that passion is needed but practical passion composed of great marketing, product positioning and shelf strategy is necessary to increase your chances of success in the consumer food arena. Each article to follow will present one or more principles to help you learn that you need to know a lot more than just creating great tasting food to have a chance of getting on the shelf.

http://foodbeverage.about.com/od/Specialty/a/Starting-A-Food-Business.htm

How to run a business from home

Whether you're planning an empire or just doing a bit of work from home, here are some things you need to know

 

Working from home is on the rise. Photograph: Alamy

 

The number of people working from home is on the rise: some may have set up entirely on their own, but others are looking for a way to earn extra money alongside their day job.

More than 3 million Britons have held a second job in the past six months and a further 1.5 million have launched their own business to supplement the income from their main job, according to research from Direct Line Home Business Insurance.

In the past 12 months alone, there has been a 34% increase in people setting up a business at home according to Freelancer.co.uk, a website for freelancers looking for more work or wanting specialist help. More than half of them have turned their bedrooms into their workplace, it says, with the kitchen the next most popular place to work and 9% even converting the garden shed into an office.

But whether it's your main business run from a dedicated office, or a side job you do at a desk under the stairs, there are some things you need to know to make it work.

1. Tell the tax man

You need to let HM Revenue & Customs know that you've started a business within three months of starting so you are set up to pay the appropriate National Insurance contributions and ready for self-assessment. If you're working alone you'll need to register with HMRC as a sole trader. Details of what you need to do when you start working for yourself are on the HMRC website.

2. Get an accountant

It may sound like an unnecessary expense, but an accountant will be well-versed in knowing what costs you can expect to offset as business expenditure and may save you their fees several times over. If your business is being run from home you may be able to claim for some of the costs of running your property, for example part of your heating bills. You can find a local accountant via the ICAEW website, or ask friends for recommendations.

3. Invest in a filing cabinet

"The revenue can come in and check you are keeping a sufficient level of records, particularly for new businesses," says Tim Walford-Fitzgerald, senior tax manager at the chartered accountants HW Fisher. "This will protect you if there's a revenue inquiry. There's a penalty of up to £3,000 if you don't keep proper records." Even if you're just selling stuff on eBay or running fitness classes at home you need to keep a record of the payments you receive. You don't need to set up a separate bank account as HMRC will check your personal bank account if necessary.

4. Claim expenses

To keep the tax bill as low as possible you need to know what you can claim as legitimate business expenses. Some costs will be directly related to your business, such as a separate phone line or broadband. Others will have a dual purpose and split between personal and business use, such as:
• Mortgage interest (but not the capital repayment) or rent if you're a tenant
• Running costs such as heat, light and water and TV licence if it's an essential tool
• Repairs to your home or adding a desk and bookcase to an existing room
• Council tax
• Car or van – for a list of allowances for petrol and running costs go to the HMRC website

"Don't be greedy by claiming 100% for business use or you will be liable for capital gains tax on that portion when you sell your home. Make sure you apportion the costs fairly and reasonably," says Walford-Fitzgerald.

"One method is to work out how many rooms you have in your home, and identify how many of those rooms you use for business and calculate how much time you actually use these rooms for business," says Emily Coltman, chief accountant at FreeAgent, which provides an online accounting system for freelancers and small businesses.
"For example, if you're a freelance decorator you might spend an hour or two a week writing up your books at home, if you're a self-employed PR consultant or web designer, you may well do the vast majority of your work at home."

Alternatively, you can claim a flat rate for your expenses based on the number of hours worked – currently the rate is £10 a month if you use it for 25 to 50 hours a month rising to £26 for 101 or more hours.

5. Insurance

You don't need to tell your home insurer if you're simply doing office work such as using a computer or telephone and doing paperwork. Do check that your office equipment is covered. LV, for instance, covers you for up to £5,000 of computer and other equipment as standard. If you have stock, business cash and tools stored at home you will need a commercial insurance policy. And if you have clients or employees visiting you at home you need to add public liability cover to your policy in case any of them have an accident at your home. This also applies if you're working in other people's homes as a plasterer for instance. It costs about £5 a month, according to Direct Line.

6. Make time for yourself …

"Just because you're working from home, doesn't mean you have to be on call 24 hours a day. Designate working hours and break for lunch," says Bill Little of Freelancer.co.uk.

7. ... and other people

If you find it lonely working from home, make phone calls rather than only communicating by email and push yourself to go to industry events and network.

Tell family and friends. They can provide moral support and may have helpful tips or contacts. If you're selling goods, they may buy from you. And tell them the hours you keep so that they don't drop in and disrupt your working day.


http://www.theguardian.com/money/2013/oct/10/jobs-home-working-tips

Home based businesses Statistics

National data from the Home Business Survey¹ shows that in the UK, there are 2.8 million businesses operating full time from home, contributing £284 billion to the annual UK economy.  This is an increase of 300,000 businesses over the past 12 months.  In the 2009 Survey, 32% of respondents in the Home Business Survey started their business in the past 12 months, on account of redundancy, or people opting for a new career path that involves regaining control over their working life; 49% of respondents confirmed what they are enjoying most about being their own boss is ‘freedom to make my own decisions.’  Home businesses started before the recession have not had to dramatically change their strategy or practices. This ‘business as usual’ policy can be attributed to the fact that home businesses are operating on low overheads, making the most efficient use of technology, and often selling into niche markets.

The most frequently stated reasons for starting from home were lower start-up costs (57%), better work/life balance (52%) and being close to the family (33%).  There has been a 9% increase in those ‘Working 5 to 9’ – the term we apply for people holding down a day job and building a business at nights and weekends. This enables business owners to build confidence and cashflow before moving full time into running their business.

Technology remains a key enabler to starting and growing a business from home, with 81% of survey respondents stating that technology is critical to the success of their business and 74% using social networking sites to keep in touch with other businesses.

Home businesses are growing by outsourcing and subcontracting work, as opposed to taking on staff. 89% of home businesses expected to increase turnover in the next 12 months and plan to do so by using freelancers/outsourcing (45%), and making greater efficiency of existing resources (42%).  Only 4% said they would grow by hiring full time employees.  The sectors showing the most significant growth are business services (business consultancy, legal, accountancy, architecture/design, training, outsourced services) and consumer services (arts/crafts, domestic repairs/services, beauty/wellness, tutoring, caring).

The over 50’s are well represented when it comes to home business; 68% of Home Business Survey respondents are between the ages of 36 and 59, with the majority (36%) falling in the 45-59 age group. This is reflected in the 2009 Business Pulse that showed, of the almost quarter of respondents who were over the age of 55, more than double (30%) were running their business from home, compared with an out of-home location (17%).  Home business is bringing families together and we are seeing the emergence of multi-business homes where more than one business is run under a single roof. 18% of households responding to the Survey are home to at least one business and we expect this figure to continue to rise.

Supporting home business can have positive implications for local economies and the environment. Based on a study by Bradford University it is estimated that having BT employees working flexibly and from home has reduced commuting costs, saved 12m litres of fuel and reduced CO2 emissions by 97,000 tonnes.

When asked ‘what is the one thing you would like to see in your area that would help your business’, 43% responded with ‘events & networks for home business owners’ which is, in turn, driving the growth in home business hub facilities.  There is more that could be done when it comes to tailored business support. When starting out, home business go online to seek advice and support (27%) closely followed by turning to government bodies such as Business Link (25%) but 16% of respondents confirmed they don’t go anywhere for advice.

The majority of home businesses fund their start-up through personal savings (75%) with the next preferred option being friends & family (20%).

The number of people starting and growing a business from home is felt to have had a positive impact on the economy, the environment and society.

Table 1. Number of home based businesses across the UK, 2008

Source: Home Business Report 2009, Enterprise Nation

* These figures are estimates and are calculated from the regional datasets given for Small and Medium Enterprise Statistics for the UK and Regions 2008, published on Wednesday 14 October 2009. Source: Department for Business Innovation & Skills

The Top 100 Home Business Hotspots ranking is based on an analysis of 550,000 SoHos (Small Office Home Office) and shows the areas with the greatest concentration of home based businesses. In terms of the regions with the largest numbers of areas appearing in the Top 100 listing, the South East leads, followed by Yorkshire & The Humber.

When looking at what cities appear in the Top 100 Home Business Hotspots, Hereford is 65th, compared to Worcester 77, Shrewsbury 47, Gloucester 32 and Birmingham 3.

The Top 100 Home Business Hotspots are ranked by postcode and based on home business data from infoUK, September 2009.  This data offers a different snapshot to the national SME Statistics for the UK and Regions 2008 (Department for Business Innovation & Skills) as the Hotspots are based on analysis of 550,000 businesses, as compared with 4.8 million for the BIS data, this lists only the top 100 home business hotspots out of a total listing of 3,235 postcode areas.

Source: Home Business Report 2009, Enterprise Nation

The information available for showing the number of home based businesses within Herefordshire is limited. The only available source being the 2001 Census, which in 2010 is nine years out of date; but in absence of any other data this will give us an idea of what the level of home based working/businesses is in Herefordshire compared to elsewhere. The data used is the number of self-employed people working from home, taken here to be a proxy for home based businesses.

Table 2.  Working from home statistics

Source: 2001 Census, crown copyright

At the time of the 2001 Census, Herefordshire had 48% of self employed who worked from home, this was higher than all neighbouring authorities, the West Midlands region and England as a whole, with the exception of Powys which had 56%.  Powys does have a slightly higher proportion of 16-74 year olds who are self employed, 27% compared to Herefordshire’s 22%.

Comparatively, of those who work from home both Herefordshire and Powys have lower proportions who are employees (34% and 26% respectively) whilst Telford and Wrekin and the West Midlands region as a whole had much higher percentages (56% and 51% respectively).

Source: 2001 Census, Crown copyright

 

http://factsandfigures.herefordshire.gov.uk/1531.aspx