For most start-ups setting up a business is relatively quick, cheap and easy. In fact it’s just about possible to set up a business in a day!
But not knowing the right structure can also spell disaster!
If you know exactly what type of business to start and have made all the research, read the right books and did the networking then this can ensure a smooth start.
Follow these 7 simple steps and you could be up and running in no time:
Step 1. Business Plan
Every new business should have a business plan. It is the key to success. If you need finance, no bank manager will lend money without a considered plan. We consider why you should draw up a plan and what it should include.
Step 2 . Business Structure – Which you should choose
We consider the options available to you when starting your own business. There are tax and legal implications which have a bearing on the choice you make.
The common types to set up are: As a sole trader Or limited companies.
If you are starting or have recently started a business in the South East London area Or London Bridge, we, at KG Accountants, can help you decide on an appropriate business structure.
Having made the decision to be your own boss, it is important to decide the best legal and taxation structure for your enterprise. The most suitable structure for you will depend on your personal situation and your future plans. The decision you make will have repercussions on the way you are taxed, your exposure to creditors and other matters.
Step 3. Insuring your Business
When starting a new business, you will no doubt recognize the need for insurance. It can provide compensation and peace of mind should things go wrong but can also represent a significant cost. We consider the types of insurance you may need.
Step 4 . Choose a business name
Search Google and Companies House to see if the name you want is available. Make sure the name you want is not already taken. Also check the domain name whether it is available.
Step 4. Set-up a business bank account
You need a business bank account if you set up a company, as it is a separate legal entity to you. It’s not strictly required if you are a sole trader (though it’s usually recommended) – but you must keep very clear accounts.
Step 5. Get compliant
Make sure that you satisfy all regulatory issues eg. health & safety, licensing, data protection. Gov.uk has some great tools to take you through this. This only takes a few minutes and is straightforward for most start-ups.
Step 6. Start accounting for everything
Appoint an accountant or set-up your own simple book-keeping system. As a minimum keep records of all sales and costs. An online accounting package could save you a lot of time and effort, while keeping your records up-to-date and in great order.
Step 7. Sort out your work space
Your Local Authority/ Council should be able to provide information about business premises and rates in your area. If working from home, before you shop for office equipment make sure you understand:
- how to include a percentage of household bills as business costs;
- possible Capital Gains tax implications if you are using one particular room/area in the house for business (best avoided by using parts of rooms);
- planning permission – if you expect regular business visitors or to employ someone who’ll be working from your home, ask your local authority planning department for advice.;
- if you rent, check your lease to see that home-working is allowed.
If you work online or using a laptop most of the time, you might want to check out co-working opportunities in your area, where you can rent a desk for a few hours or full-time. Co-working can be a great way of over-coming isolation and instilling routine and discipline when you’re starting out.
Maybe a little bit of a push, but you could certainly do most and maybe even all of that, in one day.
KG Accountants based in South East London, SE1 are small business accountants who provide Small business accounting services and Taxation services including completing and filing your tax returns, Limited Company Accounts, payroll, bookkeeping and VAT at a reasonable price.
If you need to speak to a Pro active Accountant about your new venture, please contact us on Tel: 0207 953 8913 please Visit our website.