Is it a business or work at home job

[DoolallyTap]

A while ago I started a thread about my micro business working from home and some commentators said I did not have a business, I had a work at home job!
If I am self employed, or a director of a Ltd company and I work from home selling from a website and earn a good income from it as self employed or take a salary and dividends and retain profit, what am I?

 

[Mark T Jones]

I believe the accepted term is 'lifestyle business' ie one which giivs it's owners a decent lifestyle but won't stand up without them

 

[fisicx]

If you are the business then it’s really just a job.

A plumber may have a limited company but without them the business would fail. Which makes it a job.

 

[Ozzy]

Are you not an entrepreneur?

Call yourself what you like; it doesn't really matter to me—said in a sincere way. If you're asking my definition, then if it is your sole source of income, and if you do not wish to expand and grow and are content, then I'd share @Mark T Jones definition as a 'lifestyle business'. Anything else is just semantics. Following the poll I did on here a while ago, most people tend to refer to themselves as a 'business owner'

 

[Joyous]

If I am self employed, or a director of a Ltd company and I work from home selling from a website and earn a good income from it as self employed or take a salary and dividends and retain profit, what am I?

Businesses come in all shapes and sizes and are run from every type of premises from a garages, kitchen tables or spare bedrooms to pupose built offices or factories.

You are in the business of selling from your website. The fact that it's run from home doesn't negate the fact that it's a business.

 

[UKSBD]

A while ago I started a thread about my micro business working from home and some commentators said I did not have a business, I had a work at home job!
If I am self employed, or a director of a Ltd company and I work from home selling from a website and earn a good income from it as self employed or take a salary and dividends and retain profit, what am I?

It's all about context.

The person may have a business, but when you read replies saying "it isn't really a business it's a job" the thread tends to be from a person asking "what their business is worth" or "where can I sell my business"

Yes, it may be a business, but when it comes to topics like that, it's more of just a job.

 

[Mark T Jones]

Are you not an entrepreneur?

Call yourself what you like; it doesn't really matter to me—said in a sincere way. If you're asking my definition, then if it is your sole source of income, and if you do not wish to expand and grow and are content, then I'd share @Mark T Jones definition as a 'lifestyle business'. Anything else is just semantics. Following the poll I did on here a while ago, most people tend to refer to themselves as a 'business owner'

You could sign up to an MLM and become a serial entrepreneur

But seriously does it matter?

It matters a lot if you are looking to sell or raise equity

It might matter if you are taking big steps like recruiting, tendering or taking on premises.

If (like me) your plan is to enjoy life on the back of your business, it's fine and dandy.

 

[annabelleme]

It is still a business, I believe. The difference between a "work-at-home job" and a "home-based business" can sometimes be blurred, but in my opinion, if you are self-employed, it is your business. My father had a business and worked from home - I don't think it is the same as a remote job.

A while ago I started a thread about my micro business working from home and some commentators said I did not have a business, I had a work at home job!
If I am self employed, or a director of a Ltd company and I work from home selling from a website and earn a good income from it as self employed or take a salary and dividends and retain profit, what am I?

 

[DontAsk]

It is still a business, I believe. The difference between a "work-at-home job" and a "home-based business" can sometimes be blurred, but in my opinion, if you are self-employed, it is your business. My father had a business and worked from home - I don't think it is the same as a remote job.

You are confusing the issue. No one is talking about WFH as a remote worker.

A job is something you do for reward, wherever you work.

A business is something that makes money for it's shareholders, wherever the business activities take place.

The classic UKBF definition is that a business that can only pay the sole director a wage, and makes no money otherwise is, little better than a job in financial terms. There are obviously other benefits such as flexibility and being your own boss.

A business that cannot function without the director as the one key employee is not a real business.

 

[fantheflames]

I'd describe you as a micro-business which can be the same level as a freelancer in many cases. But depending on the context, if you have your own products or services, then I'd see you as a business, not a job. A business can take many forms and a micro-business is certainly one of them. Nothing to be worried about, though! You can classify how you want.

 

[KeithGreen]

Interesting question, and I've come to the discussion a bit late. I have sold many businesses which are one-person owned and operated, and could be regarded as just a job. But they are often limited companies, usually VAT registered, sometimes regulated, and come with little job security, and may not be that easy to exit.

When it comes to selling your business, if it can be transferred to someone then it is probably saleable. Bill the Plumber as a one-man-and-a-van operation is probably not saleable. But if Bill has a few dozen service contracts then he may have something to sell as an ongoing business, perhaps to another plumbing firm, or an FM company, or a start-up.

Likewise if you're selling stuff online from your spare bedroom and that's your job, your business and your lifestyle then someone may pay you money to acquire the same lifestyle, or add to another business.

 

[JEREMY HAWKE]

You have fallen victim to the "Load Of Bollocks" syndrome

It does not matter what the so called commentators say The only thing that matters if if it makes a profit .

There are people on here working on their own from a laptop and making good money I rate them a lot higher than the zombie companies with high turn over and even higher out goings

 

[Porky]

Totally agree with @JEREMY HAWKE on that point

Hey, nothing to be sniffed at running a small lifestyle business from home, keeping it small scale, making a few quid, good luck to you, be happy, enjoy life.who cares what you class it as.

A aunt of mine loved cake making, adored it, so much so she started making fancy cup cakes in her kitchen at home and selling them online, got all the commercial packing cases from a wholesaler, worked whatever hours she liked, no real pressure unless she had to get a larger cup cake order ready for a kids party. Enjoying life always smiling and laughing, considered herself the “cup cake queen” making a few quid, low level income.

She was getting known at her kids school for these cakes and found she had to reject orders because she only had one oven at home and if she had one kids party order to fill she couldn’t take on another. So, with help from her husband decided to rent a low cost unit not far from home and invest in three larger ovens to fill more orders. Some of you will quickly work out where this is going...

Now I would love to tell you all that business was booming, she made a fortune and her cupcakes are now in every M&S U.K. wide but alas no, she was run ragged, not enough hours in the day, had insurance, rent, health and safety, wages for part time help as she tried to scale, worried sick could she pay the fixed overheads as she had to get so many big party orders every week to cover them. She went from happy go lucky, loving life to being stressed as hell and ironically to add insult to injury had less income for herself now at a larger scale. 18mths later she closed the business and now hates the sight of cup cakes.

My point of telling this tale is that, well small lifestyle can be a beautiful thing, my aunt would have saved herself a load of stress and hassle staying as a lifestyle business with a cracking life/ work balance. Our time on this rock is less than you think, so enjoy the moment. Other people’s perception of if you are a business, a job, a lifestyle, a whatever counts for nothing. It’s what you want, what works for you is all that matters. Good luck to you.

Finally, for all those that do scale well in bigger coy’s, there is nothing they hate more than those on the outside saying “oh it’s alright for him/her...” when in reality these people have no clue about the stress, worry, sleepless nights and hassles they have overcome on the journey to get there. There are no free golden eggs out there you have to work harder than ever for it - oh I have gone all philosophical, lol

Take care, Pork’s

 

[DoolallyTap]

You have fallen victim to the "Load Of Bollocks" syndrome

It does not matter what the so called commentators say The only thing that matters if if it makes a profit .

Perfect answer, this is what I said in a previous post and oh boy! did I get some stones thrown at me.

 

[BusterBloodvessel]

Totally agree with @JEREMY HAWKE on that point

Hey, nothing to be sniffed at running a small lifestyle business from home, keeping it small scale, making a few quid, good luck to you, be happy, enjoy life.who cares what you class it as.

A aunt of mine loved cake making, adored it, so much so she started making fancy cup cakes in her kitchen at home and selling them online, got all the commercial packing cases from a wholesaler, worked whatever hours she liked, no real pressure unless she had to get a larger cup cake order ready for a kids party. Enjoying life always smiling and laughing, considered herself the “cup cake queen” making a few quid, low level income.

She was getting known at her kids school for these cakes and found she had to reject orders because she only had one oven at home and if she had one kids party order to fill she couldn’t take on another. So, with help from her husband decided to rent a low cost unit not far from home and invest in three larger ovens to fill more orders. Some of you will quickly work out where this is going...

Now I would love to tell you all that business was booming, she made a fortune and her cupcakes are now in every M&S U.K. wide but alas no, she was run ragged, not enough hours in the day, had insurance, rent, health and safety, wages for part time help as she tried to scale, worried sick could she pay the fixed overheads as she had to get so many big party orders every week to cover them. She went from happy go lucky, loving life to being stressed as hell and ironically to add insult to injury had less income for herself now at a larger scale. 18mths later she closed the business and now hates the sight of cup cakes.

My point of telling this tale is that, well small lifestyle can be a beautiful thing, my aunt would have saved herself a load of stress and hassle staying as a lifestyle business with a cracking life/ work balance. Our time on this rock is less than you think, so enjoy the moment. Other people’s perception of if you are a business, a job, a lifestyle, a whatever counts for nothing. It’s what you want, what works for you is all that matters. Good luck to you.

Finally, for all those that do scale well in bigger coy’s, there is nothing they hate more than those on the outside saying “oh it’s alright for him/her...” when in reality these people have no clue about the stress, worry, sleepless nights and hassles they have overcome on the journey to get there. There are no free golden eggs out there you have to work harder than ever for it - oh I have gone all philosophical, lol

Take care, Pork’s

Couldn't agree more with this. The business of mine that failed recently was born out of a combination of co-incidences and different factors, but at the heart of it was a friend of mine who was a baker. Quite happily in his kitchen making pies, pasties, cakes, pastries etc. and had people collecting them on Sundays and Wednesday from his house, or he sold them hot in his friends cafe round the corner. If the cafe was busy one day he literally shoved some pies in the oven at home and walked round the corner to deliver a fresh batch. Easy lifestyle, baked exactly what people wanted to order, no wastage, good margins, no overheads.

We went into a full scale bakers/pie shop, 2 full time staff, 2 part time, fixed overheads, marketing costs, battles with the council, outrageous energy costs, covid (that was the final killer), god knows how much stress, man management, long hours, etc etc etc. The business has gone and, to echo the comment above, he now can't stand to even think about making a single pie again. He's left the profession he was so passionate about behind completely and is employed doing something completely different.