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ESSENTIALS

Starting a business from home: The honest guide

Starting a business from home: The honest guide

Posted: Fri 12th Sep 2025

49 min read

So, you're thinking about starting a business from home? Good on you.

Whether you've been mulling it over for months or you've just had a lightbulb moment while staring into your coffee, there's never been a better time to make it happen. Seriously.

Running a business from home isn't just for tech start-ups or people with giant spare rooms and fancy kit. Some of the most successful businesses in the UK today began in the corner of a bedroom, at a kitchen table or between toddler naps.

Consider Fleur Colville, who started posting out vegan baking kits from her own kitchen during lockdown. Just her, a whisk and an idea. That side hustle became Mix & Rise – a fully-fledged business that now ships plant-based bakes across the UK. All from home.

This guide isn't full of fluff. It's a proper walkthrough for anyone who wants to know how to start a business from home in the UK – with a bit of personality, a few real examples and answers to the big questions people actually ask, like:

  • How do I figure out what business to start?

  • What do I need, legally and practically?

  • Can I really do this from my dining table?

You don't need to be a business expert or have loads of money to get going. But you do need a bit of direction – and that's what this guide is here for.

Contents

1. Is a home business right for you?

Let's get this bit straight: running a business from home is not always as cosy as it sounds.

Sure, there's no commute. You can wear comfy clothes and put the kettle on whenever you like. But it also means being your own boss, your own cleaner, your own IT support… and sometimes your own motivational speaker.

So before we dive into the nitty-gritty of how to get started, take a moment to think about whether it actually suits you. No judgement here – just honest reflection.

The good stuff

Let's not ignore the perks. Running a business from home can mean:

  • lower overheads – no need to rent a workspace

  • more flexibility – work around your life, not the other way round

  • extra time – ditch the commute and use that time to build something for yourself

  • freedom – make your own decisions, set your own goals, grow in your own way

People like Liv Conlon are proof of what's possible. She started staging properties from her family home as a teenager.

Fast forward a few years and she's running a million-pound company. She didn't wait for the perfect office or the perfect time – she just got started where she was.

But let's be real…

There are also some things you'll need to manage:

  • Space – if your home is already tight, where will the business live?

  • Distractions – kids, laundry, unexpected doorbells… it's not always peaceful.

  • Motivation – no manager means no-one to tell you to crack on when you're flagging.

  • Isolation – if you're a people-person, working alone all day can feel a bit quiet.

And let's not forget the blurry lines between work and home life. It's easy to fall into the trap of answering emails at 10pm or turning your living room into a storage unit. It takes discipline and boundaries – not just enthusiasm.

A quick self-check

Before you get stuck into the planning stage, ask yourself these questions:

  • Am I self-motivated, even when no-one's watching?

  • Can I carve out space (physical and mental) for this to work?

  • Do I have a support system, or know where to get one?

  • Am I prepared to start small and learn as I go?

If you're still nodding, then brilliant – you're in a good place to begin. If not, that's OK too. This guide isn't about selling you a dream. It's about helping you build something real, sustainable and right for you.

2. Finding the right business idea

Let's be honest – this is the part where a lot of people get stuck. You know you want to work for yourself, but then your brain starts doing somersaults.

  • Should I sell something?

  • Should I offer a service?

  • Should I turn that hobby into a business? Or is it just a hobby?

First thing's first: you don't need to have a world-changing, investor-wowing idea to start a business from home. Most people start small, scrappy and slightly unsure. The idea just needs to be doable and make sense for you.

Get inspiration from our guide to coming up with a good business idea.

Start with what you already have

Skills. Hobbies. Things people always ask you about. These are often the best starting points.

Maybe you're a dab hand at graphic design. Maybe you've got a cupboard full of handmade candles. Or perhaps you're the one mates turn to when their tech stops working. Whatever it is – that could be your business.

The trick is to find the overlap between what you're good at, what you enjoy and what people will actually pay for.

Ideas that work well from home (and don't cost the earth)

Here's a short list to get your wheels turning. These are businesses people across the UK have started from kitchens, spare bedrooms and garden sheds:

Service-based businesses

  • Virtual assistant or admin support

  • Freelance writing, editing or design

  • Social media management

  • Tutoring (online or local)

  • Coaching or consultancy (business, fitness, mindset – you name it)

These tend to have low overheads and rely more on time and skill than stock or equipment.

Product-based businesses

  • Handmade goods (think candles, jewellery, bath products)

  • Printed merchandise (T-shirts, mugs, stationery – often done via print-on-demand)

  • Custom food items (like cakes, jams, sauces – check food regulations!)

  • Subscription boxes or gift kits

Fleur Colville's story springs to mind again here – she took her love of baking and created vegan letterbox-friendly baking kits, all hand-packed from her home kitchen. A simple idea, delivered well.

Digital businesses

  • Online courses or workshops

  • Blogging, YouTube, podcasting (with affiliate income or sponsorships)

  • Digital downloads (planners, templates, stock photography)

  • Dropshipping (products sold online, fulfilled by third parties)

These can scale well but may take longer to build an audience. They often suit people who are tech-savvy or comfortable creating content.

A quick note on originality

It's easy to get caught up thinking your idea needs to be 100% original to work. Not true. Plenty of people sell candles, cakes or coaching services – but no-one else does it quite like you will.

It's your personal spin, your story, your way of connecting with customers that makes the difference.

 

VIDEO: Where to find business ideas

In this webinar, entrepreneur Grace Castillo discusses where to find business ideas and how to turn them into a real business:

 

Test it before you leap

Before you pour your savings or every spare hour into your new idea, give it a little test run:

  • Talk to people – friends, family, potential customers. Would they buy it? Use it? Pay for it?

  • Post a trial service or product on Facebook Marketplace, Etsy or Instagram.

  • Run a one-off workshop or create a simple landing page and see who signs up.

  • Search for it on Google – is there already a market for it? Who else is doing it?

Validation doesn't need to be fancy. Just enough to know you're not shouting into the void.

 

Woman in a cosy sweater using a calculator at a cluttered desk with photos, a laptop, and a coffee cup, in a bright room with plants. 

3. What do you need to start a business from home?

Right, so you've got your idea – or at least a solid hunch about what you want to do. Now comes the big question: what do I actually need to get started?

Truthfully? Probably a lot less than you think.

One of the biggest myths about starting a business is that you need loads of money, a full business plan and all the gear before you can even begin.

But most home-based businesses in the UK start with the bare essentials – a laptop, Wi-Fi and a bit of belief.

That said, it does help to have a few key things in place, so you're not constantly scrambling from one thing to the next.

The practical basics

What you need will depend on what you're offering, but let's cover the foundations.

A decent laptop or desktop

Nothing fancy, just reliable. If it can handle video calls, documents and maybe a bit of design software, you're golden.

Solid broadband

If your connection drops every time someone streams Netflix in the next room, it might be worth upgrading. Especially if you'll be running meetings, managing an online shop or working with big files.

A dedicated workspace

No, it doesn't have to be a home office. A tidy corner, a fold-up desk, even the kitchen table can work – but ideally somewhere you can step away from when the day's done.

A phone number and email address just for the business

This helps with boundaries, professionalism and not missing important messages in a sea of WhatsApp chaos.

Any industry-specific tools or software

  • For a freelance designer: Adobe or Canva

  • For a product seller: an Etsy or Shopify account

  • For a virtual assistant: calendar and email tools

  • For everyone: something to help with invoicing (such as accounting software or good old spreadsheets)

You really don't need to buy everything at once. Start lean. Upgrade as you grow.

A simple business plan (honestly, keep it short)

Forget the Dragons' Den-style 40-pager. You just need a one-page plan that answers these questions:

  • What am I selling (and how much will I charge)?

  • Who am I selling it to?

  • How will they find me (marketing)?

  • What do I need to start (equipment, money, time)?

  • What are my goals for the next three to six months?

That's it. This gives you something to steer by, rather than winging it every week.

Basic budgeting

Let's talk money. One of the smartest things you can do early on is to figure out what this is going to cost you – and how much you realistically need to earn.

Here's a simple way to break it down:

Start-up costs

  • Tools and software

  • Branding (logo, domain name, website – optional but helpful)

  • Stock or supplies (if you're selling physical products)

Ongoing costs

  • Subscriptions (for example, Canva, website hosting)

  • Delivery/postage (if this applies)

  • Marketing (ads, printing and so on)

A business like Hungry Squirrel (founded by Susan Yule) is a perfect example. She started with just a domestic food processor and a bag of nuts, making small batches of nut butter in her kitchen.

No big loans. No commercial kitchen. Just a great product and a bit of elbow grease. That's how simple it can be at the beginning.

If you're short on funds, don't panic. There's plenty of support out there – from Start Up Loans to local enterprise grants and even crowdfunding. We'll touch more on funding options later in the guide.

Support – you don't have to do it alone

Even though you're running a solo business, you don't have to figure everything out by yourself. Help is available from:

  • Enterprise Nation (of course!) – free webinars, networking and lots of business resources

  • the British Library's Business & IP Centre – free advice and research tools

  • your local council or enterprise hub – they often offer grants and mentoring

  • online communities – Facebook groups, Slack channels, even TikTok if that's your thing

Also, don't underestimate the power of a business buddy – someone else who's also building something from scratch. You'll both have moments when you need to vent, celebrate a tiny win or ask, "Is this normal?".

4. Legal steps to set up a home-based business in the UK

We know – the legal stuff isn't the most thrilling part of starting a business. But here's the thing: sorting it early saves you a lot of hassle later. And once it's done, it's done. No looming admin cloud hanging over your head.

If you're running your business from home, there are a few boxes to tick to make sure you're staying on the right side of the law – and sleeping soundly at night.

Choose your business structure

This bit sounds more complicated than it is. You've basically got two main options when you're starting out:

Sole trader

This is the simplest route. You and the business are legally the same thing, so any profits you make are yours – but so are any debts or losses.

  • It's the easiest structure to set up.

  • There's a lot less admin.

  • But you are personally responsible for any losses.

This is how most home-based businesses begin – especially if it's just you running the show.

Limited company

This is a separate legal entity from you. It offers more protection if things go wrong, but comes with more paperwork and responsibilities.

  • You're not personally liable for business debts.

  • It can look more professional.

  • However, there's more admin, you'll need to produce annual reports and you'll have to keep business and personal finances separate.

Still not sure? Don't overthink it. You can read our guide to registering a small business to help you make a decision.

Just know that many people start as sole traders and switch to a limited company later if and when it makes sense. You can register either structure online through GOV.UK.

Register with HMRC

If you go the sole trader route, you'll need to let HMRC know you're self-employed. This tells them you'll be doing a Self Assessment tax return each year – nothing scary, just a breakdown of your income and expenses.

Key things to remember

  • Register as self-employed by 5 October in your business's second tax year.

  • Keep track of your income, expenses and receipts.

  • Put money aside for tax (rough guide: 20% to 30% of your profits).

Using an app like Sage, Xero, FreeAgent or QuickBooks, or even a spreadsheet, can make this much less painful.

Check if you need permission to work from home

This is one of those things many people overlook. For most home-based businesses, you won't need planning permission – but it depends on what you're doing.

Ask yourself these questions:

  • Will my business cause extra traffic or noise?

  • Am I making physical changes to my home (like converting a garage)?

  • Will clients or customers be visiting the house regularly?

  • Am I renting my home, and is there anything in my tenancy agreement that restricts it?

If you're not sure, it's worth checking with your local council or landlord just to be safe. No-one wants a nasty letter through the door after they've just got going.

Understand licensing and regulations

Depending on what you're doing, you might need extra permissions. Don't worry – it's not as daunting as it sounds.

Here are some examples:

  • Selling food from home – may need a food hygiene inspection and registration with your local council

  • Offering childcare – may need to be registered with Ofsted

  • Beauty therapy, tattooing, massage – may need a licence from your local council

  • Playing music in a workspace – may need a PRS licence (if music is played to customers or employees)

  • Selling goods online – there may be consumer protection rules to keep to, and you might need to create a return policy

If you're unsure what applies to you, this licence finder tool from GOV.UK is a good starting point.

Get insured

It's tempting to skip this early on – but if something goes wrong, you'll wish you hadn't.

The type of insurance you need depends on your business, but here are the most common:

  • Public liability insurance – covers you if someone is injured or their property is damaged as a result of your business

  • Professional indemnity insurance – if you give advice or services and something goes wrong

  • Product liability insurance – if you sell physical products

  • Home business insurance – especially if your home contents insurance doesn't cover business equipment

Most major insurers offer home business cover – and it's often cheaper than you'd expect. Read our blog on home business insurance for more detail on what you need.

Keep personal and business finances separate

This one's more of a strong recommendation than a legal must, but it'll make your life so much easier.

Open a separate bank account just for your business. It helps you:

  • stay organised

  • track income and expenses easily

  • avoid mixing up personal and business spending

  • look more professional when dealing with clients or suppliers

Some banks now offer free business banking for start-ups and new businesses – check out Starling, Monzo Business or Tide, or traditional options like NatWest and Lloyds.

A real-life reminder

Remember Susan Yule of Hungry Squirrel? She started out with a simple nut butter recipe and a domestic food processor. But she still registered with the local council and sorted her food hygiene rating early on.

It gave her confidence – and credibility – as she scaled up. Starting small doesn't mean skipping the important stuff.

 

VIDEO: Top legal tips for entrepreneurs

In this webinar, small business lawyer Patricia Wing shares insight into sorting out your business structure, staying compliant, protecting your intellectual property (IP) and more:

 

5. Setting up your home workspace

Let's talk space – not the Pinterest kind with industrial shelving and reclaimed wood desks, but the real-life kind.

Maybe it's a corner of the dining table, a spare bedroom you've barely touched since 2018 or even a laptop on the sofa when the kids are in bed.

Whatever your set-up looks like, the point is this: you don't need a perfect home office to start a business from home. However, you do need a space that helps you focus, stay organised and feel like you're "at work" (even if you're still in your slippers).

Why space matters more than you think

When you run a business from home, the lines between work and home can blur fast. One minute you're replying to emails, the next you're doing laundry or answering the door to a delivery you forgot you ordered.

Having a dedicated space – even if it's just a foldaway desk in the corner – tells your brain that it's work time. It helps you switch on at the start of the day… and crucially, switch off at the end.

Making the most of what you've got

You don't need to knock down walls or convert your loft (unless you want to). Instead, think about what's going to help you do your best work, based on your set-up and the type of business you're running.

Ask yourself these questions:

  • Do I need peace and quiet (for example, for calls or creating content)?

  • Do I need space to store physical products or materials?

  • Will I ever have clients or collaborators visiting?

  • Can I work from a laptop or do I need more kit?

Even something as simple as a desk near natural light, a comfortable chair and a decent plug socket situation can make a world of difference.

A real-life reminder

Liv Conlon, who we mentioned earlier, built her first property staging empire out of her family home.

No swanky showroom, no big team – just clever use of space and a can-do mindset. And it worked. Why? Because the space she had was functional. That's all you need at this stage.

A few workspace tips that make life easier

Get comfy – but not too comfy

A proper chair is worth investing in. Your back will thank you. A beanbag might feel fun on day one, but by day three you might be Googling "chiropractors near me".

Keep it clutter-free

It's harder to focus if your work area doubles as the family dumping ground. Even a few baskets or folders can help you separate business stuff from household chaos.

Think about power, lighting and Wi-Fi

Make sure you've got reliable plugs, decent light (natural if possible) and a solid internet connection. If your Wi-Fi's patchy, consider a booster.

Have a system for storing business supplies

If you're selling physical products or dealing with a lot of paper, try to avoid the "just pile it on the table" method. Shelving, boxes or a labelled cupboard can keep things tidy (and stop you losing receipts).

Create boundaries – even with a curtain or sign

Especially if you've got kids, flatmates or a partner who "just wants to chat". A visual signal like a closed door or a sign that says "at work" helps set expectations – for others and for you.

Don't forget about your digital workspace

Your physical space matters, but your digital set-up is just as important. Keep your files organised, back up your work (seriously, do it) and use tools that help you stay focused.

Here are a few that small home-based businesses often rely on:

  • Trello/Notion/Asana – for keeping track of tasks and ideas

  • Google Workspace or Microsoft 365 – for email, documents and spreadsheets

  • Canva – for making everything look polished, even if you're not a designer

  • Zoom/Teams/Google Meet – for client calls, workshops or catch-ups

  • FreeAgent/QuickBooks/Xero – for keeping your finances in order

A quick note on mindset

It might take a while to get used to working from home – especially if you're used to buzzing offices or busy routines. That's normal.

Try setting start and end times for your workday. Take real lunch breaks. Stand up and stretch. Celebrate tiny wins. This is your space now – and it'll evolve as you do.

6. Branding and building your online presence

Honestly? "Branding" can sound like one of those fluffy buzzwords that marketing agencies throw around. But really, it just describes how people see and feel about your business.

It's the tone of your emails, the look of your website, the way your packaging feels when someone opens it – it's your business's personality.

And here's the good news: you don't need to spend thousands or be a design expert to build a strong brand. You just need clarity, consistency and a bit of heart.

Start with the basics: who are you for?

Before you worry about colours and logos, figure out who you're actually trying to reach.

  • Who are your ideal customers?

  • What problems are they facing?

  • How do you want them to feel when they come across your brand?

Are you warm and helpful, like a trusted mate? Bold and confident? Calming and clean-cut? The more clearly you define this now, the easier everything else becomes – from your Instagram captions to your packaging choices.

Choose a business name that feels right (and is available)

Picking a name is weirdly hard. But it doesn't need to be perfect – just clear, memorable and easy to spell. Ideally, it:

  • reflects what you offer or the vibe of your brand

  • is available as a domain name (check 123Reg or Namecheap)

  • isn't already taken on key social platforms

  • doesn't mean anything rude in another language (yes, this happens)

Once you've chosen a name, it's a good idea to register the domain, even if you're not building your website just yet.

Same goes for social media handles – you can always post a "coming soon" message while you get sorted.

Build a simple, clear website

A website is your online home. Even if most of your business comes from word of mouth or social media, people will Google you.

Having a professional-looking site builds trust – even if it's just a one-pager to start with. You can use platforms like:

  • Squarespace – stylish templates and easy to use

  • Wix – super flexible, great for beginners

  • Shopify – ideal if you're selling products

  • WordPress – more customisable, a bit more technical

  • Carrd – fantastic for quick, lightweight landing pages

What your site should include:

  • Who you are and what you do

  • What problem you solve or product you offer

  • How to contact or buy from you

  • Testimonials or examples of your work (if you have them)

Don't worry about making it perfect. Websites evolve. Get a basic version live, then tweak it as you go. Our website-building checklist lays out all the things you need to think about.

Set up your socials (but don't overwhelm yourself)

It's tempting to sign up for every platform under the sun – Instagram, TikTok, LinkedIn, Pinterest, Facebook, X... but that's a quick way to burn out.

Instead:

  • pick one or two platforms where your ideal customers actually hang out

  • post consistently (even once a week is fine if it's regular)

  • focus on building trust, not just racking up likes

  • use your own voice – speak how you'd speak to a customer, not like a robot

Also, don't underestimate the power of showing your face. Whether it's you packaging orders, talking about your process or just sharing behind-the-scenes – it builds connection. People buy from people.

Get listed on Google (yes, even if you don't have a shop)

Even if you run everything online, a free Google Business Profile can help people find you more easily – especially if you offer local services.

Head to Google Business Profile and follow the steps to set it up. You can list:

  • your business name and category

  • website and contact details

  • business hours (even if you work flexibly)

  • photos, updates and reviews

It's quick, free and boosts your local search visibility.

Branding on a budget: what's worth spending money on?

If you're on a tight budget, here's what's nice to have vs. worth investing in:

  • Nice to have later

    • Custom packaging

    • Professional photoshoot

    • Fully branded website design

    • Expensive font licences

  • Worth investing in

A tool like Canva is brilliant for creating your own graphics, headers and even logos. Just make sure you use the same fonts, colours and tone across everything so it feels cohesive.

And remember…

Your brand doesn't need to look like Apple or sound like Innocent Smoothies on day one. It just needs to feel authentic to you and consistent enough that people recognise it.

Don't get stuck trying to make it perfect before you launch. You can (and will) refine it as your business grows.

7. Marketing your home business

Right – you've got the idea, you've sorted the legal bits, your website's live (or nearly there) and you've picked a name you don't hate. Now for the big one: how do you actually get customers?

This is the part that makes most people a bit wobbly. It's one thing to dream up your business – it's another to get it in front of people who'll pay for what you offer.

But here's the thing: marketing doesn't have to mean spending loads of money or pretending to be someone you're not.

In fact, the best marketing, especially when you're working from home, is honest, consistent and human. Let's break it down.

Start with who you already know

It might feel awkward, but your first few customers will almost always come from your own network. Friends, family, old colleagues, neighbours – people who trust you already.

Tell them what you're doing. Not in a salesy way. Just a quick message, post or email saying something like:

"Just a heads up – I've started offering [your service/product] from home. If you know anyone who might need it, I'd love it if you passed my name on."

It works. And it's how a lot of brilliant businesses get off the ground.

Use social media – but use it wisely

You don't need to become an influencer overnight. But you do need to show up regularly, speak to your audience like a real person and make it easy for them to understand what you do.

A few tips:

  • Post behind-the-scenes stuff – packaging an order, making something, a peek at your workspace.

  • Answer common questions you get about your product or service.

  • Share reviews or nice messages (even if it's just from your best mate at first).

  • Don't just post to sell – post to connect.

  • Use your face when you can – people trust people.

Take Fleur from Mix & Rise – she didn't start with a huge following. But by showing herself baking, packing kits and chatting about vegan life, she built a loyal community who wanted to support her. That's the power of showing up as you.

Tap into free (or nearly free) marketing channels

You don't have to run ads or pay for fancy PR. Here are a few cost-effective ways to get seen:

Local Facebook groups

They might not be glamorous, but local groups are gold for getting your name out there – especially for services or physical products.

Just make sure to read the rules before posting, and avoid being spammy. Offer value. Answer questions. Be a helpful presence.

Start an email list

Even if it's just 10 people to begin with. Platforms like MailerLite or Mailchimp are free to start with.

Use it to:

  • let people know about new products or services

  • share helpful tips related to your niche

  • build trust so you're top of mind when they need what you offer

Write helpful content

Blog posts, how-to guides, checklists – content that answers your customers' questions is great for visibility on search engines like Google and positions you as someone who knows their stuff.

Example: If you're a freelance bookkeeper, you might write a blog like "Five things sole traders always forget at tax time." Short, helpful, shareable.

Collaborate

Partner with other small businesses – especially if you share an audience but don't compete.

  • Do a joint giveaway.

  • Offer bundled services.

  • Guest post on each other's blogs.

  • Shout each other out on Instagram.

These kinds of partnerships feel genuine and often lead to new customers organically.

Make it ridiculously easy for people to buy from you

Sometimes, it's not that people don't want what you're offering – it's that they're confused about how to get it.

So, wherever you're promoting yourself, make sure it's clear:

  • what you do

  • who it's for

  • how they can buy, book or enquire

  • what happens next

Whether it's a link in your Instagram bio, a simple checkout on your website or a pinned post on Facebook – clarity wins.

Don't worry about being "everywhere"

It's better to show up consistently in one or two places than to be stretched thin across five platforms you hate using.

Pick what suits you best – and where your customers hang out.

  • Product-based? Instagram and Pinterest might work well.

  • B2B or professional services? LinkedIn can be powerful.

  • Local services? Facebook and Google listings are your best mates.

  • Visual or creative work? TikTok and YouTube can help you grow fast – if you're up for it.

Remember: even once a week is still consistent.

Track what's working (and what's not)

You don't need spreadsheets and dashboards. But keep an eye on:

  • where your enquiries or sales are coming from

  • what posts get people engaging

  • which bits of your website people visit most

Over time, this helps you focus your energy on what actually brings in business – not just what looks nice.

A final word on confidence

Marketing yourself will probably feel awkward at first. That's normal. But people want to hear from passionate, small business owners doing something they believe in.

Don't wait until you feel "ready". Start sharing now – your voice, your offer, your story.

Because honestly, the right people are out there. You just need to show up so they can find you.

 

Woman in a green blouse writing in a notebook at a desk with a laptop and coffee mug, in a bright room with shelves in the background. 

8. Managing finances and scaling your business

Let's talk money. Not in a Dragons' Den pitch kind of way – just the real, everyday financial stuff that keeps your home business ticking over.

Because here's the truth: even if you're starting small, you are running a business. That means keeping an eye on cash flow, staying organised with expenses and thinking ahead as things start to grow.

You don't need a finance degree. You don't even need to be "good with numbers". You just need some simple systems and the confidence to ask for help when you need it.

Start with separating your finances

If you only take one thing from this section, let it be this: keep your business money separate from your personal money.

Open a dedicated business bank account, even if you're a sole trader. Most online banks make it easy – Starling, Monzo Business, Tide, Revolut – many have free accounts for start-ups and brilliant app features.

Why it matters:

  • You can track income and expenses clearly.

  • It makes doing your tax return way less stressful.

  • It helps you look more professional.

  • You'll avoid the "wait, was that coffee a business meeting or just Tuesday?" problem.

Track your income and expenses – from day one

You don't need fancy accounting software at the start (though tools like Sage, FreeAgent, QuickBooks or Xero are great if you're into that). A simple spreadsheet works fine.

Each week, take 10 minutes to update:

  • what money came in (sales, bookings and so on)

  • what money went out (tools, postage, supplies and so on)

Over time, you'll spot patterns: which products sell best, when things slow down and where your money's going unnecessarily.

Understand what you really earn

It's easy to get excited by a £500 sale – until you realise £200 went on materials, £50 on postage, £20 on platform fees and you've still got tax to think about.

So always know:

  • your costs per sale

  • your margins (what's left after expenses)

  • your time – if a £10 sale takes you three hours to fulfil, something's off

This helps you price things properly and build a business that actually pays you – not just keeps you busy.

Put money aside for tax

If you're self-employed, the tax doesn't get taken out automatically – so you need to do it yourself. As a rule of thumb, try to set aside 20% to 30% of your profit for tax and National Insurance.

Open a separate savings account and move a bit of every sale straight into it. Come tax return time, you'll thank your past self.

Tip: HMRC's Self Assessment deadline is 31 January for the previous tax year. Get it done early and avoid the January panic.

Know when to bring in help

If numbers aren't your thing, that's totally fine. Hire an accountant – even for a one-off set-up call – and they can save you money, time and stress.

They can help you:

  • register for taxes correctly

  • understand what you can and can't claim as expenses

  • decide if/when to become a limited company

  • file your tax return properly

It's not a failure to outsource. It's just smart.

Scaling your home business – when and how

So let's say things are going well. Orders are coming in, you've got a steady stream of clients and your evenings are suddenly full of admin. How do you grow without burning out?

Raise your prices

If you're fully booked or struggling to keep up, it might be time. Don't be afraid to charge properly for your time, skill and value. You're not a bargain bin – you're running a business.

Streamline or automate

Use tools that do the heavy lifting for you:

  • Templates for emails, proposals and invoices

  • Scheduling apps like Calendly and Acuity

  • Automation tools like Zapier

  • E-commerce platforms that manage orders, shipping and payments

If you're still manually replying to every enquiry or sending hand-written invoices, there's room to simplify.

Outsource bits of the work

Start small. A virtual assistant to manage admin. A freelance designer to spruce up your packaging. A bookkeeper to sort your receipts.

You don't need to hire staff or rent an office – just ask "What's the task I dread most?" and find someone to take it off your plate.

Think bigger but build slowly

Not every home-based business needs to "scale up" into a warehouse or agency. Growth might look like:

  • expanding your product line

  • collaborating with other makers or professionals

  • moving to a commercial kitchen (like Susan Yule did with Hungry Squirrel)

  • launching digital products or courses alongside your core offer

The key is to grow intentionally – in a way that supports the life you want.

Don't lose sight of why you started

It's easy to get caught up chasing revenue targets and social media stats. But remember: you started this for you. For freedom, flexibility, purpose – whatever your reason was.

Growing a business doesn't mean working more hours or building something huge. It means building something that works for you – on your terms.

Last words

If you've made it this far, first off – well done. You've clearly got the spark, the curiosity and the drive to make something happen.

That already puts you ahead of most people who talk about starting a business from home but never quite take the leap.

We've covered a lot – from finding the right idea and sorting the legal stuff, to building a brand, reaching customers and managing your money.

And yes, there's still plenty to learn. That's the nature of business. But here's the thing most people don't realise:

You don't need to know everything before you begin. You just need to begin.

Start small. Keep it simple. Build a routine. Make a plan (but leave space for change). Whether you're selling hand-poured candles, offering bookkeeping services or launching an online course from your spare room, the most important step is the first one.

People like Fleur and Susan didn't start with teams, investment or a "perfect" set-up. They started at home, with what they had. The same goes for you.

You might not feel like a "proper" business owner just yet. That's fine. You'll grow into it.

With each customer, each sale, each piece of feedback – your confidence (and your business) will grow.

A few final reminders before you go:

  • You don't need permission to start.

  • Done is better than perfect.

  • The only way to figure it out is to start doing it.

  • You already have more skills than you think.

So whether you're reading this at the kitchen table, during a quiet moment before the school run or on a break from your current job, here's your sign: you've got this.

Whenever you're ready – the world is ready for what you've got to offer.

 

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