Market Research

Market research is a key part of your preparation. You need to be confident that there will be enough demand for whatever product, service, or skills you hope to sell. It's also advisable to have some customers or potential customers in your sights when starting out, and to be prepared to find the next wave.

Financial Considerations

It would be foolish to contemplate starting a business at home without the finances to tide you over the early stages as you get yourself established. These could be savings, or a loan, or an overdraft facility. When working out your financial needs for the first year, take into account not just your usual bills but also items that you may not have had to purchase before, such as special insurance, licences, maintenance and repair of equipment, and so on. You also need to take into account the fact that your heating, lighting, and phone bills are likely to be higher if you will be at home all day.

How Much Will You Earn?

Once you've worked out your various commitments, you'll be able to work out how much you need to earn. Pricing your product or service may be a difficult task and you'll need to take into account what the competition, if any, are charging or what the target market for your goods or services is prepared to pay. You also need to take account of the fact that there may be periods when you have no work, can't work, or want to go on holiday (although you may have to go without holidays until you're safely established).

Tax Implications

Last but not least, inform your local tax office. Both tax and National Insurance are now dealt with by HM Revenue & Customs, so you only need to register your self-employment once.