So, you are all set to work for yourself, right? Now where do you start? There are several things to do as well as remember while forming a company. Beginning a business involves planning, taking financial decisions as well as completing a series of legal actions.
Forming a company is akin to climbing a mountain. It may appear daunting from the bottom but if you focus on taking one step at a time, you will soon reach your goal.
Here is a step by step process to help you launch a successful business.
Prepare Business Plan
Business plans help to focus as well as organise the thoughts and resources you and your new business will require, the way it sells services and goods and when you can expect the business to be profitable.
Several businesses meet failure just because they start with unreasonable expectations and don't have a clear idea of the way to achieve things. To be a successful entrepreneur, you need to look carefully at the weaknesses and strengths before committing capital and time to a new business.
Choose an Appropriate Business Name
The name of the business is very important and thus, it is necessary to dedicate sufficient time to choose it. You are quite likely to come up with an array of amazing names at first and then realise that the names will not go with your organisation. You will come across some ridiculous ideas as well in the course of the process of brainstorming. This procedure is at times hilarious and enjoyable and at times, frustrating; but at the end of this, you are bound to have a great moment with the perfect name popping up in your head.
Make sure not to rush through the process but give yourself some time while you are naming your business. Record all the details you can think of since it may help you to find that winning name. Think of the services and products, values and missions, the market you are planning to enter and the people you target; all these things will prove useful. You can also involve your family and friends in this process, asking them how a given name would look like.
Examine Multiple Business Structures
Check out on the multiple business structures you can operate a business in the U.K. before zeroing on the best option for your start up. Make sure to check out on the pros and cons of all these structures before you decide whether to start a limited company, register as a sole trader or find a business partner for yourself.
Design a Logo
One of the very first things that your customers or visitors notice about you is your logo. Since this is the very first thing that the prospective customers see, it has a significant role to play in creating the right impression.
Most business houses need a level of external advice. For some businesses, a basic bookkeeping service is sufficient, while for others, there is a need for accountants, solicitors as well as other advisers.
Make sure to dedicate adequate time as well as research in finding the team of advisers you will be comfortable to work with. Ensure that they can meet business needs both at the start-up level as well as over longer term.
Get Finances in Order
Most businesses fail owing to lack of capital. You must be realistic about the level of investment the business will require as well as have some idea on ways to get that. Some businesses believe that a working line of credit is useful since at times, it may be difficult to match expenditure with cash flow. However, make sure to remember that the lenders often need personal guarantees for new business even if you have set up limited companies.
Open a Business Bank Account
After you register a business, set up a bank account. This is one of the best ways to manage finance with efficacy. It is better not to use the personal bank account unless you want to complicate things. Make sure to draw a clear line between personal and individual.
Deal with Accounting and Tax
As soon as you set up business, register with HMRC for some taxes. This may include VAT, PAYE, Corporation Tax as well as Self-Assessment depending upon the legal structure you choose.
This is when the tasks of accounting and bookkeeping come into play. It will allow operation of business in a cost efficient as well as tax effective way.
Following this checklist while you form a company will help you to get all the business proceedings correct, ensuring you success.