Starting a business guide to help you to get started with your business.
Starting a business is an exciting journey to embark on and it gives you a sense of total freedom. You tell yourself what to do and you are in control of your business and your time.
Here are the questions to help you get started with your business.
Step 1: What business structure is suitable for your business?
Choosing the right form of business structure when starting out your business is important. Considerations should include the legal, tax, and business administration aspects of the legal entity you are going to use.
- Sole Trader or Limited company – suitable for one man business
- Conventional Partnership or Limited Liability Partnership – if more than one person jointly interested in business
If you decided to use a limited company for your business, you may incorporate your company directly with Companies House or use an accountant’s service. Your company registration is usually can be completed within one business day.
Thereafter, remember to submit your confirmation statement and company accounts to Companies House on time.
Step 2: How are you going to finance your business startup?
Financing your business is another important thing in starting your business. The startup capital required is dependent on your business.
For example, if you can use your personal computer for the business you may not need to buy new computer equipment.
However, if your business required you to have an office then obviously bigger sum of startup capital is required as signing up for serviced office lease required at least 3 months rent deposit and 3 months rent in advance. Some commercial property agents may willing to negotiate the lease terms but you still have to prove that you are capable of paying the office rent.
You may consider using own cash/savings, loans from friends and family and you may sell your surplus personal assets for cash.
Borrow from banks and financial institution is another option. You will need to prepare a business plan to outline your business commercial viability.
Step 3: Who can help your business
Accountants can assist you to set up your accounting records system right from the beginning and advise on your business related financial matters.
Solicitors could advise you on your business contracts and preparing legal documents for you.
Business Link. It is a UK government supported organisation that provides useful information to businesses of all sizes.
Step 4: How much would it cost? – Accountants’ fee
Traditionally accountants charge their fee by the hour. There are also accountants offer fixed fee accounting services.
Whether a fixed fee or charge by the hour, ask for a couple of quotes to compare. Understand what included in the quote and what is extras.
If you intend to use a limited company for business, it may be a good idea to seek accountants’ advice as soon as your company have been set up.
Step 5: Do you have to register for VAT?
You are not required to register for VAT if your sales are below the VAT registration threshold or if you only make “exempt” or “out of scope” VAT products and services.
However, you may opt to register for VAT voluntarily if it is beneficial to your business.
Step 6: Should you rent an office or work from home?
Many startup businesses are run from home. There are benefits of working from home.
May be, consider taking up an office when your business can take care of itself – start generating sales and have sufficient cash.
Starting a business guide can be used as a checklist for your start-up business.
Now that you are ready to start your own business, may good luck and good fortune be your way. If you require any help please do not hesitate to contact us.
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