What Are the Hidden Costs of Running a Home-based Business?

What Are the Hidden Costs of Running a Home-based Business

Due to the effects of the COVID-19 pandemic and the new home working culture, more British business owners are now choosing to run their operations from the comfort of their homes.

While working at home could see you make considerable savings in commuting fees and reduce fixed costs such as office rent and business rates, switching your business to a home-based working model could incur some unexpected charges and expenses – but what are the hidden costs of running a home-based business?

What Are the Hidden Costs of Running a Home-based Business?

1. The furniture for the home office

Hidden Costs of Running a Home-based Business - The furniture for the home office

In order to make your home office more comfortable and fit for purpose, you may need to invest in furniture such as a suitable desk and comfortable, ergonomic chair – this is particularly important if you’ll be spending long periods of time working at the computer. While new furniture can be expensive, consider shopping around in second-hand shops for items for your home office. You can also recycle or upcycle your existing furniture to make further savings – just remember that unsuitable furniture can have a negative effect on your physical health and affect your workload.

2. Equipment

Whether you require a laptop, raw materials or practical tools to do your job, you may need to invest in the necessary equipment for your home-based business, which can negatively affect your budget. Although your reliance on potentially expensive tools and equipment may vary according to the nature of your job, try to go with the most cost-effective options to save money wherever necessary. 

3. Car or transport

Car or transport

One of the main pros of remote working is reducing the distance you have to travel each day, however you may still be required to drive regularly as part of your job. Amidst rocketing fuel and energy bills in the UK, the cost of petrol and diesel (or electricity if you’re using an EV) is likely to affect your budget and incur hefty costs – as well as fuel, consider factoring in costs associated with servicing and MOTs, buying or replacing car tyres and other unexpected repairs you may have to undertake. 

4. Cleaning

Whereas you’ll likely reduce the necessity to hire a professional cleaning team when running your business from home rather than an office, you’ll still need to factor in the price of cleaning products and tools to your monthly budget – you can reduce cleaning costs by maintaining a hygienic and decluttered office and carrying out any cleaning works yourself, using minimal, cost-effective materials.

5. Electricity


Amidst the cost of living crisis and exponentially rising energy bills, the cost of electricity is an often overlooked hidden expense that’s becoming increasingly important as we move into the winter period. If you’re a home-based business owner, consider taking a more mindful and eco-friendly approach to powering your home, including reducing your use of electricity and switching your appliances for more energy-efficient replacements.