Majority of microbusinesses opt to work from home

More than eight of every ten microbusinesses in the UK operate from a home setting, new research from Lloyds Bank Insurance has revealed.


The Big Issues for Small Businesses report found that 53% of all microbusinesses are based at home while many of the top ten working locations are also found there.


The living room, dining room and kitchen all featured as popular places to carry out business in, with around 2.7 million self-employed people working from home in the UK.


Some 82% of microbusiness owners had also made significant alterations to their property in order to make it work ready, at an average cost of £1,392.


Converting a room into an office was the most popular adjustment as this provides a base from which a company can be run.


Being able to work from home was listed as the main reason for 49% of microbusiness owners and sole traders deciding to go it alone.


Working from home provides greater flexibility, can made better financial sense, and can boost productivity.


However, it can also have some negative effects with 37% of bosses admitting to working more than they would like and households also becoming messier.


Domestic disruption must also be accounted for, as nearly one in five admitted concerns about a family member deleting important documents or destroying papers.


Damaging technological devices was also an issue, showcasing the need for appropriate insurance to help keep business running costs down.


Running a business from home can invalidate home insurance too, so it’s important for microbusiness owners who work from home to ensure they are covered.


Managing finances for small businesses is essential as large amounts of additional money is not always available should something go wrong. Where cash flow problems are evident, business restructuring options should be considered as this could provide a solution to the issue.


By Phil Smith


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