Setting up an office

1.1 Start with a basic minimum of furniture and equipment.

• A standard-height desk, with an adjustable (height and back support) chair, on castors, suits most people. Although an L-shaped desk may be better for using a PC.
• Look through an office supplies catalogue to work out what you may need.
• Auctioneers hold regular sales of furniture - often almost new - that has been seized by bailiffs. Look in Yellow Pages under 'Auctioneers and valuers'.
• If you rent space in a business centre, basic furniture is often included in your licence fee.

1.2 Plan your office layout for efficient working.

Organise the office to minimise the time wasted moving about.

• Store frequently-used files in easy reach.
• If you have employees, place those who work together close to each other.

1.3 If you expect visitors to come to your office, think about their requirements.

• Will you need a separate meeting room?
• Do you need visitors to be impressed by comfortable surroundings?

2.1 Make sure you have enough telephone lines and extensions.

• Shop around for a supplier to save money on calls.
• If you decide to work from home, think about swapping your home phone line for a business line.

2.2 Email is cheap and fast and lets you send and receive messages at any time.

• It also allows you to send any sort of computer file as an attachment.
• Most customers and suppliers will expect to be able to contact you by email.
• If you have a website, consider providing an email response facility.

2.3 A fax machine allows you to send information quickly and efficiently to customers and suppliers.

2.4 There are several options available when it comes to acquiring communications equipment.

• Most types of equipment can be bought, rented or leased.
• Suppliers can be found in the Yellow Pages. Shop around, especially for bargains in secondhand extension phones and small business phone systems.

3.1 Most start ups find that a computer system pays for itself within a year, even if it is only used for word processing, some spreadsheet work and storing a simple contacts database.

3.2 If you need a photocopier, choose one to suit the expected copying workload.

Many small businesses can just use the fax for everyday copying, and use photocopy shops for large numbers of cheap copies (usually 4p to 8p per A4 copy).

• Basic copier prices start at around £200, though more sophisticated machines are often leased, rather than bought.
• Maintenance charges are around 2p a copy all in (including toner powder) for smaller machines and up to 2,000 copies a month, falling to 1p per copy for volumes of over 5,000 copies a month.
• Check the number of copies a minute the machine can make. This is shown in the manufacturer's brochure. Ask for written confirmation of the number of copies a month it is designed to handle, and of its expected lifespan.
• Features you may want include reduction and enlargement, the ability to use A3 paper, and automatic paper handling for multiple sheets.

3.3 You may be able to save time and money by investing in basic postal equipment.

• Buy a set of postal scales, to avoid frequent trips to the post office.
• A franking machine saves fiddling about with stamps by automatically stamping your mail. Rental costs start from around £5 a week. Royal Mail can give you the names of recommended suppliers.
• If you use stamps, keep them in an indexed (1p, 2p, etc) stamp book.

3.4 A dictating machine can be a cheap and efficient way of recording information.

A dictating machine costs £25 to £150. A transcription kit, to help transcribe your tapes, will cost from £100.

3.5 A scanner with optical character recognition (OCR) software can save hours of work, if you routinely need to re-type large volumes of text into your computer.

• OCR allows the scanner to read text off a page and capture it in a computer file suitable for word processing or other uses.
• Choose a flatbed scanner (about £50) which is fast, with high resolution and a good OCR software package.

4.1 All your stationery should have the same overall style, with matching typefaces, design and paper - or card - quality.

• Choose a clear, easily-read typeface.
• Paper weights range from 80 gsm (grams per square metre) to 120 gsm. Card varies from 180 gsm to over 300 gsm.
• A recognisable logo, or a slogan, can help to build up your company image. But these are not necessarily high priorities for most start-up businesses.

4.2 Letterhead stationery (A4 size) is used for letters to customers and suppliers.

• Include your business name, address (including postcode), phone and fax numbers and email and website addresses.
• By law, you must include names of the sole trader or of all the partners, or the full company name - unless this is the same as the business name.
• A limited company must show the registered number, the registered office address and the country of registration.
• Businesses registered for VAT must show their VAT number on invoices.

4.3 Compliments slips are a cut-down version of your letterhead, giving all the basic information (but omitting details like registered office) on a smaller piece of paper - usually the same width, but one third the depth.

They are useful - and economical - for sending brief messages and cover notes.

4.4 Invoices, receipts and statements may be needed by the handful or by the hundred, depending on your business.

If your business only issues these occasionally, you can use your letterhead paper, with an appropriate heading inserted below the letterhead.

• Alternatively, have your name, address and VAT number (if registered) printed on labels or incorporated in a rubber stamp and use standard duplicate stationery.

4.5 Business cards give customers, suppliers and other contacts a record of your name and details.

• Use a standard card size.
• Your name (including first name) and job title (eg managing director) should be given prominence.
• If appropriate, include your numbers for your direct telephone line and mobile phone, and your personal email address.
• Include the business's name, address, telephone and fax numbers and email and web addresses.

5.1 Is it legal?

It should usually be possible to use part of your home as an office.

5.2 Will it provide the right working environment?

It can be difficult to discipline yourself to be productive.

• Take yourself seriously.
• Establish a work space.
• Separate 'at work' from 'home'.
• Arrange your work patterns to fit in with the family and set working hours during which you are not to be disturbed.

5.3 Will working from home provide the right image?

• Do you expect visitors to come to your office? What will they think?
• Will your address be suitable? Should you use a mailing address?

5.4 What are the financial implications?

• An appropriate proportion of bills (eg electricity) can be treated as business expenses and offset against tax.
• Unless you claim mortgage payments or rent against tax, you should not usually be liable for uniform business rates (UBR).
• You must tell your insurers you work from home (and change the insurance on your car, if you use it for business). Otherwise, your insurance may become totally invalid.
• You may be required by law to take out public liability insurance.