Starting up in Business Running your own business can be an exciting and rewarding occupation. It is a wonderful feeling to be in control of your own trade or profession. However, it can also be stressful and frightening especially if it has not been thoroughly researched before commencement. The following checklist gives some pointers to guide someone considering setting up in business. There are many steps which may require specialist help and we have the necessary training to provide it. Only you can make your business a thriving and successful one but as a Chartered Accountants practice we can assist you to do it. Initial Ideas 1. Is your product/service fully defined? 2. Have you researched your market? 3. How will you organise your business? 4. What type of financial assistance will you require? 5. Can your idea be grant aided? 6. Why do you want to commence in this business? 7. Do you have the necessary expertise? Working out the Detail Business Plan A good business plan is essential to the starting up process. It will not only be required in order to raise finance but will be a guide for the early years from commencement. It is vital that the projections are researched and are realistic. This is generally an area where professional assistance is required and we are always happy to assist with the preparation of business plans. Practical considerations: 1. Staffing Research will be needed to ensure that you will be able to obtain staff with the expertise necessary for your business in the area in which you intend to operate. If this is not possible then you need to consider how you will deal with recruitment and training issues. 2. Location You should identify premises or a suitable area and consider any disadvantages of the choice and how these can be overcome. Will the premises be purchased or rented? 3. Suppliers Where will you get your supplies? Are they willing to supply you especially if you have competition in a local area? 4. Customers Will you become too dependant on one major customer? Do you foresee difficulties with distribution? What are your terms and conditions? 5. Stock How much will you have to carry? Do you have the space? What is the re-order time? Financial Considerations: 1. Where will you obtain financial backing? 2. Have you appointed an accountant with the necessary expertise to assist you? 3. Are you aware of any grants which may be available? 4. Are there agencies offering "soft loans" to new businesses that you would qualify for? 5. Are you happy that the budget included your business plan is realistic? Business Structure Once you have researched your business idea thoroughly you are ready to consider the legal structure of your business. The three main options are sole trader, partnership and limited company. The decision is dependant on a number of factors for example: 1. Are there product liability risks? 2. How uncertain is your business? 3. What rate of growth do you expect? 4. Are there any professional or statutory regulations you need to consider? 5. Have you embarked on the idea alone or in partnership with someone else? Click here to see a discussion on the advantages and disadvantages of limited company status. Getting Started Once you have addressed all of the above points and have obtained the necessary backing you will want to get up and running! However this is when a number of costly mistakes can be made if certain issues are not addressed at the proper time. For example: Have you all necessary insurance including professional indemnity, public and employer's liability? Have you complied with professional and trade regulations? Has your accountant notified the relevant authorities of your commencement i.e. HM Customs & Excise, Companies Registry and HM Inspector of Taxes? Have you set up proper systems to deal with quality control, administration and financial management? Have you set up your Accounting System either in computerised or manual form? Do you know what are the essential records that you must maintain? Have you ensured that any business name being used is not already in use? Are you aware of all obligations required of you as an employer such as the minimum wage, stakeholder pensions, health and safety? Have you drawn up Contracts of Employment and got employees to sign them? Setting up in business is complicated and time consuming. Engaging the service of our practice can save money in the long run!