It can be daunting to start a business, with many things to consider before setting out. But like with many things if there is risk involved then the benefits are often high so making sure that you are fully prepared before starting out is essential.
There are a lot of things to consider from renting or buying office space in london, to employing a workforce as well as paying the correct amount of tax.
Starting a business can be exciting and in many cases quite lucrative long-term but having the correct knowledge and financial support is crucial to ensure that the business does not fail. It is a well-known fact that as many as two thirds of all businesses fail within the first three years, which could have been down to not having the correct tools to start off with.
The best thing to do is write a checklist of things that need to be found out before opening for business. Perhaps one of the most important and costly outgoings is finding the right business premises. Renting out office space should be one of the first considerations. Does the business require large office space, or can the business function operating from a small unit. Think about the equipment that is needed to get the business off the ground and for on-going functionality. Is there a large outlay initially for stock and has this been taken into consideration when looking at office space in terms of having adequate storage.
Has the financial needs of the business been considered, for example will the business run on one person operating it, or will it require employees. In which case, the issues of tax and national insurance come into play. Can this be done by the business owner or does the business require the expertise of an accountant.
Considering when the business will be at its busiest is always a good way to plan viability. For example are you selling a product or service that would be particularly popular around Christmas time, warranting the need to employ more employees.
If that is the case, will there be times in the business when it will go through times of hardship, and ensuring the right provisions are in place to support the business through these times.
There are ways to help a business get started without approaching the bank for a loan to get started. The first one is the Young Enterprise Scheme. This is aimed at anyone as young as five and is a charity based organisation that gives people the inspiration and equipment they need to succeed in business.
Secondly there is the Prince's Trust, which is aimed at 18-30 year olds and offers advice and support as well as low rate loans.
The less commonly known organisation is called Make your Mark-start talking ideas. This is aimed at younger people aged 13-20 and can help turn ideas into reality.
Whatever option is chosen to get the business off the ground, ensuring that it is registered as a business is essential. There are a few ways that this can happen. The first option is a sole trader. This is probably the most common ways to start out and is the simplest in terms of arranging tax. The downside to this is that initially financing could be harder and if things go wrong personal assets could be at risk.
The second most common way is to register as a limited company; there are businesses that have ltd and plc at the end of the title. It is more complicated to set up in terms of tax but it's good because your personal assets are not at risk if the business fails.
The other main thing to arrange as well as ensuring the correct office space and type of business is the tax. The taxes that need to be considered are deciding whether to be self-employed, which means that all taxes will be calculated by the business owner. V.A.T on goods and services, import and export taxes as well as other taxes. It can be very complicated and the best advice is to look at the HMRC website where all the correct information can be found.
Whatever the business the most important ingredients are commitment and determination and having the correct support from friends and family as well as I the business world will ensure the business is a success.
There are a lot of things to consider from renting or buying office space in london, to employing a workforce as well as paying the correct amount of tax.
Starting a business can be exciting and in many cases quite lucrative long-term but having the correct knowledge and financial support is crucial to ensure that the business does not fail. It is a well-known fact that as many as two thirds of all businesses fail within the first three years, which could have been down to not having the correct tools to start off with.
The best thing to do is write a checklist of things that need to be found out before opening for business. Perhaps one of the most important and costly outgoings is finding the right business premises. Renting out office space should be one of the first considerations. Does the business require large office space, or can the business function operating from a small unit. Think about the equipment that is needed to get the business off the ground and for on-going functionality. Is there a large outlay initially for stock and has this been taken into consideration when looking at office space in terms of having adequate storage.
Has the financial needs of the business been considered, for example will the business run on one person operating it, or will it require employees. In which case, the issues of tax and national insurance come into play. Can this be done by the business owner or does the business require the expertise of an accountant.
Considering when the business will be at its busiest is always a good way to plan viability. For example are you selling a product or service that would be particularly popular around Christmas time, warranting the need to employ more employees.
If that is the case, will there be times in the business when it will go through times of hardship, and ensuring the right provisions are in place to support the business through these times.
There are ways to help a business get started without approaching the bank for a loan to get started. The first one is the Young Enterprise Scheme. This is aimed at anyone as young as five and is a charity based organisation that gives people the inspiration and equipment they need to succeed in business.
Secondly there is the Prince's Trust, which is aimed at 18-30 year olds and offers advice and support as well as low rate loans.
The less commonly known organisation is called Make your Mark-start talking ideas. This is aimed at younger people aged 13-20 and can help turn ideas into reality.
Whatever option is chosen to get the business off the ground, ensuring that it is registered as a business is essential. There are a few ways that this can happen. The first option is a sole trader. This is probably the most common ways to start out and is the simplest in terms of arranging tax. The downside to this is that initially financing could be harder and if things go wrong personal assets could be at risk.
The second most common way is to register as a limited company; there are businesses that have ltd and plc at the end of the title. It is more complicated to set up in terms of tax but it's good because your personal assets are not at risk if the business fails.
The other main thing to arrange as well as ensuring the correct office space and type of business is the tax. The taxes that need to be considered are deciding whether to be self-employed, which means that all taxes will be calculated by the business owner. V.A.T on goods and services, import and export taxes as well as other taxes. It can be very complicated and the best advice is to look at the HMRC website where all the correct information can be found.
Whatever the business the most important ingredients are commitment and determination and having the correct support from friends and family as well as I the business world will ensure the business is a success.
No comments:
Post a Comment