What you need to consider when starting up a business
We are in the early part of a new year and for many, it is a time when you may be considering a change of direction by setting up your own business.
There are many pitfalls on the way to running a successful business, but the rewards should be worth it.
Advice to help owners make the most of their business includes:
Be realistic – Come up with a plan of what you hope to achieve and the timeframe in which you hope to reach that target.
Company structure – When starting a business, you need to decide on the structure. Will you be a sole trader, a limited company or a business partnership? The structure will influence responsibilities such as what paperwork you need to complete and when, the taxes you pay, how you take profit out and what happens if you make a loss.
Be a web wonder – A professional-looking vibrant and interactive website is worth the investment in a top-notch web designer. A shabby-looking site will put potential clients off.
Marketing – If you have a good product you need to promote it. Create a marketing plan which could include networking/personal selling, PR, social media and email marketing.
Accounts and finance – The simplest way to separate your personal and business finances is by creating a business bank account. You could handle your own finances and accounts, but it would make more sense to use an accountant, who is professionally trained to ensure your accounts are legal and can help you save money by ensuring you’re making the most of tax breaks.
Funding – There are many ways of securing funding for a new business and they could include:
- Friends and family
- Angel investors
- Venture capitalists
- Bank loans
Staff and payroll – There are things you’ll need to do if you take on your own employees. You’ll have more responsibilities, including:
- Running payroll
- Deducting income tax and paying for their National Insurance
- Providing workplace pensions to eligible staff
If you have found this article useful, it is the latest in a series of blogs on business advice.
Need advice on starting up and running a business? Contact us today.