Operating a small business from home

Operating a small business from home

As the owner of a small business it is possible to run an enterprise from home but it is important to first do some homework. 

Restrictions

In residential areas most properties are zoned for residential use (residential 1 zoning). In terms of this zoning, certain rights exist whereby the occupant of the property can run a home business however not all businesses are allowed to be operated from home. Some businesses that may not be run from home include the following: funeral undertaking, kennels, escort agency, vehicle workshop, panel beater, shooting range, bakery, any form of light industry or manufacturing enterprise, veterinary clinic, transport depot and shops or retail industries. A full list of these businesses is available from the municipality. 

Check bylaws

It is essential to check not only the municipal bylaws in terms of operating a home enterprise but also the rules of the particular estate or body corporate, if applicable. For instance, in Silver Lakes Golf Estate all home businesses need to register with the Homeowners Association and are required to pay an annual fee to the Association. Part of the initial application process requires the applicant to complete a home business registration form and obtain approval/support from neighbouring owners. The applicant needs to provide sufficient on-site parking for staff and visitors to the business and ensure that noise levels and other nuisance factors from the business are kept to a minimum.   

The amount of space the business may occupy within the premises is regulated in terms of the bylaws and rules, and can either be a percentage of the total floor area or a specified size in square metres. The number of business staff working from the property is normally restricted to two.

Seek advice

It is advisable to first speak to the municipality and/or homeowners association or body corporate to discuss the ins and outs of operating a small business from home.