According to new research “home is where the stock is” as almost three quarters of SME business owners hold their stock at home, turning parts of their house into a warehouse facility.
The research which was conducted by Direct Line for Business found that 63% of the 5.7m SMEs within the UK are currently registered as selling a product, of the 63%, 71% have revealed that they have had to use their personal homes to store their stock.
In terms of rooms within their homes, research highlighted that the spare bedroom is the most popular place to store with 24% using them while 23% are using their garages, 15% using cupboards with other storage spaces including their sheds, basements, living areas and conservatories or porches.
For those who need the extra space, research found that more than one third have renovated and converted a room within their house for the sole purpose of it being a stockroom.
Although “home is where the stock is” may seem like a good idea, there are some downfalls. More than a quarter of SMEs have had stock stolen or damaged whilst stored within their personal homes. In terms of value the average works out at £1,007 worth of stolen and damaged stock. The most common reason for the cause according to 26% is accidental damage while theft was admitted by 20%.
Carly Menken, from Direct Line for Business comments;
“As more people are choosing to work for themselves, it’ no surprise that so many business owners are turning to rooms in their own home to facilitate stock as a cheaper alternative to external facilities,
“Whether stock is being stored in the home or a warehouse, there is a risk of damage or theft so it’s important to have the right insurance in place. Typically, home insurance won’t cover damaged or lost business stock at home, so business owners should consider business insurance which can cover stock and equipment and also provides cover for loss of income if stock is damaged or stolen.”