Having a brilliant business idea is merely the beginning, as any entrepreneur will tell you. You have to be able to capitalise on this idea of yours and eventually bring your vision and idea to life. Starting a business is never easy, as you also have to consider a number of important factors, such as your source of funding, your budget, your location, and other legal, logistical, and financial aspects.
But when you have finally made up your mind that yes, you can – and will – do it, then there are other aspects to think about as well. Below are a few:
What Legal Structure will your Business Have?
The legal structure you choose for your business will have a great impact on your legal activities and responsibilities. These legal activities and responsibilities include how much tax you will have to pay, how much paperwork you will need in order to get started, and how much profit you can personally earn. So when starting up your business, one of the first decisions you have to make is your business’ legal structure. For this, you have several options: either to start out as a sole trader, form a limited company, or form a business partnership.
The legal structure of your business will also determine other things, such as the amount of risk you will be taking on (especially in financial terms) as well as how much authority and control you will have regarding how you operate your business.
What is your Responsibility to Any Employees you Take On?
Another important aspect to consider when starting your business is your responsibility to your staff or employees. As your business expands, you will undoubtedly need more help in the form of extra staff. When you decide to employ people for your business, you have to find out more about your responsibilities, especially the legal aspects such as salaries, insurance, taxes, health benefits, and more. Keep in mind that once you decide to employ individuals for your enterprise, you will have to register with HM Revenue and Customs as an employer even if you are only legally classified as a sole trader.
Consider Advisers to Help you Run your Business
As a business owner, you obviously cannot do everything on your own. Apart from additional staff, you need people who have a particular skill set to make sure that your business runs smoothly and that you comply with all requirements and regulations. These advisers include accountants and legal specialists, and even business consultancy services. When choosing advisers for your business, you have the option to choose between hourly rates or a fixed rate. For this, it is also in your best interest to consider several quotations and assess each quotation’s price and service before deciding on whom to hire.
One additional tip: when choosing an accountant, opt for a chartered accountant who is a member of a professional association or body so that you will be assured of a better service.
Consider a Business Loan
Once you begin running your business, you need to have working capital – an always-available cash flow is important if you do not want your business to cease operations midway. If you can see that your business is already earning a bit of profit and has a good outlook for future earnings, you can always consider acquiring a business loan which can help your business expand and operate without any financial problems. Financing firms such as Ashley Finance (find out more about their services at www.ashleyfinance.co.uk) offer a number of services that not only include business loans, but also invoice financing, cash advances, supplier and rental finance, and more.
