Many small businesses start life from a garage or a spare room because it makes sense to keep overheads low until the business gets established.

Home-based businesses are a popular option for many types of smaller business. Generally the costs will be lower and you can avoid travel expenses. You also have the freedom and flexibility to work the hours you choose in an environment that you create yourself.

There are so many potential distractions when working from home that it is important to have a strict routine.

Ensure that you start and finish at a certain time and take a specific lunch hour break away from your work area.

It will be advantageous to have a designated room that you work in, so that you can physically leave it - and your work - behind at the end of your working day.

A standard home insurance policy will not normally provide cover for equipment you use for business. Some policies will let you extend your cover, others won’t, which means you will need to buy specific cover.

For a guide to running your business from home go to the GOV.UK website.

A comprehensive downloadable document, "Guide to Starting and Growing your Business from Home", is also available from GOV.UK.

Alternatively, follow the links below for more information of running a business from home on the smallbusiness.co.uk website:

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