Many people starting a business doing what they are good at and others turn their hobby into business. One of our clients, Sheila, she loves artwork design and devotes her spare times to designing business cards, company logos for her friends for free. Gradually she gets more and more work from her friends and referrals and now she is running her artwork design business.
Starting your own business is an exciting journey to embark on and it gives you a sense of fulfilments and total freedom. You tell yourself what to do and you are in control of your business.
All you need in building a successful business is determination and willingness to put in extra efforts.
There are questions you need to ask yourself in preparing to start your business.
Step 1 : What business structure is suitable for my 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.
If you decided to use a limited company for your business, Concise Accountancy offers company formation services and our business startup accountants will handle the entire incorporation process for you and the registration is normally completed on the same day. You can start trading on the same day.
Step 2: How am I going to finance my business startup?
Financing your business is another important thing in your Starting A Business To Do List. The amount of startup capital required is dependent on your business requirements.
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.
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Use own cash/savings, loans from friends and family and you may sell your surplus personal assets for cash.
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Borrow from banks. You will need to prepare a business plan to outline your business commercial viability
Step 3: Who can help my business ?
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Chartered Accountants and Business Advisers can assist you to setup your accounting records system right from the beginning and advise you on business related financial matters.
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Legal Advisers - Solicitors could advise you on your business contracts and preparing legal documents for you.
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Business Link - this is a UK government supported organisation that provides useful information to startup, small business, medium sized companies and large organisations.
Step 4: How much would it costs for hiring professional accountants to look after my accounting side of the business?
Concise Accountancy offers fixed fee accounts packages for business startup. The packages are designed for taking care of your company accounts and corporation tax. Your accountants will also ensure accounts and tax return are filed with Companies House and HM Revenue and Customs on time so that you will not get late filing penalty. You also get free support from your accountants throughout the year.
Step 5: Do I 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 VAT scope services. However, you may opt to register for VAT voluntarily if it is beneficial to your business.
Step 6: Should I rent an office or work from home?
Today, many businesses are run from home. There are plenty of benefits working from home. All you need to is a good website to connect your services to your customers. May be considering taking up an office when your business can take care of itself – start generating sales and have sufficient cash.
Now that you are ready to start your own business, may good luck and good fortune be yours all the way. If you require any help please do not hesitate to contact us.
Best Wishes
Business Startups Accountants
Concise Accountancy
