What to consider when setting up a business
One of the first decisions you may have to make is what you are going to call your business.
Remember if you are considering becoming a limited company now or in the future it is worth checking that the name is not already taken.
You will need to choose a structure that works best for your business, be that, sole trader, partnership or limited company.
Most new businesses are funded by the owner’s friends or family members. However, look around for other alternatives and consider whether these would work for you.
Who are going to be the customers who will buy your products or services? It may be worth carrying out some research into other similar businesses in the area.
Once you know who the customers are going to be you will then need to decide how much you are going to charge them. Again, carry out some research into other similar businesses.
What equipment do you need to start trading and how are you going to finance this? Will you work from home or will you buy or rent somewhere to run your business from?
Before you start making the important decisions about your company make sure that you employ an accountant who will be able to help and advise you. An accountant will also be able to help you with your obligations to HMRC and how to keep your books and records.
Make sure that once you have decided on your company structure and company name that you choose a bank and set up a separate business bank account. The bank may also be able to help with the financing of your business.
Make sure you are doing something that you enjoy
If your business is successful you could be doing it for a long time.
Understand the industry
You need to be aware of the competition. To be successful you will need to be able to do something better and/or cheaper than them.
The single biggest reason why new businesses fail is because they run out of cash. Make sure that you keep an eye on the company’s finances at all time.
If you would like to discuss the above blog in more detail, or you would like to speak with a member of our team, please contact Jennifer Gibson or call 01772 821021 to be put in contact with a member of our Small Business team.