It’s not the easiest time to start a business, especially this early in the year when many are feeling the post-Christmas slowdown.
If you have decided to take the leap, it’s important to make sure that you’re doing everything correctly.
As with any new venture, planning is key, but it goes beyond that. If you’re ready to start laying the groundwork for your new business, here’s the best way to begin.
Start with a strong plan
Although you may be eager to get your business up and running straight away, preparation is the best starting step on the path to success.
The first thing any aspiring business owner should do is build a strong business plan. In the plan, you’ll identify your business goals and financial targets, almost like a roadmap of where you want your business to go.
Cashflow forecasting is one of the most effective ways to show your cost planning. Not only will this plan be a useful reference point for you throughout your journey, but it will also form an integral part of any loans or investments you apply for.
Any market analysis you’ve carried out beforehand should also be included in your business plan. This will include identifying the competition and your target audience.
Our business startup specialists have worked with countless clients to help build their plans, so if you’re unsure of what to include, we’re here to help.
Choosing your structure
When you’re running your own business, there are different structures you can choose between.
Firstly, you have the option to operate as a sole trader. This will mean you’re solely responsible for the business and considered as one legal entity. While being a sole trader can offer a level of freedom to run your business however you see fit, you’re also liable for any financial losses you may experience along the way.
Secondly, you could incorporate your business. The process involves registering with Companies House and we can assist you with this process. Once you’ve registered your company, you’ll have limited liability, so if you incur any losses, you’ll have some level of protection.
And finally, you could always decide to enter into a partnership with someone. Similarly to being a sole trader, you and your partners would have full liability for the business. Your partners could be a person or even a limited company.
Find the funding
Starting your own business will always come with a cost. Whether it’s an initial bit of capital to help you find the right premises or even getting a start on building your inventory, you’ll have to have the financial backing to get things off the ground.
As mentioned, this is where your business plan will be an essential tool. Should you need to approach investors or lenders, they’ll want to have some form of proof that you’ve identified the amount of funding you need and how you’ll use it should you receive the money.
Through realistic cashflow forecasting, you’ll be able to show that you understand how to get things running and demonstrate how you’ll be able to provide repayment or a return on their investment.
We can help
Starting your own business should be an exciting step in your career. Although becoming your own boss comes with a few uncertainties, having an expert accountant by your side will help ease some of those worries.
Get in touch to discuss how we can help you start your business.