Annually in the UK, more than 500,000 people start their own business. It has become vitally important for all start-ups to be as competitive as possible, in order to survive. However, besides ensuring that you are delivering the best product or service possible to your clients, there are many responsibilities that new businesses need to ensure they fulfil. Legally, all businesses in the UK need to have accurate financial records and retain them for six years. This can be a daunting task to those developing a business for the first time, without the proper knowledge and experience.
Some of the key things you need to think about as a start-up or small business owner are as follows:
BUSINESS STRUCTURE/COMPANY FORMATION
When you start a new business venture one of the first decisions you need to make is whether to run it as a sole trader, partnership or as a limited company. This decision needs to be based on commercial factors such as public image, the degree of risk involved, the need to safeguard personal assets and of course the need to minimise tax liabilities.
A business plan comprising of cash flow projections, budgets and trading forecasts is a management report which sets out the objectives and plans for your business. It is required by banks and other lenders when looking to raise capital for your new business.
FINANCING YOUR BUSINESS
Finance is a crucial factor in the success of any business. The options include grants, bank loans, government funding and personal finance. It is important your decision suits your particular circumstances.
For most businesses (even well-established ones) the payment of tax can be a huge drain on cash flow. It is imperative that systems are in place to ensure that tax is provided for on a continuing basis throughout the year. It is also very important to know how best to minimise tax liabilities.
Bookkeeping is the recording of day to day transaction into ledgers. It is a vital task for any business (new or established) as without it you would not have any idea how your business is performing, how much money the business owes or is owed. Also you would not be able to produce accounts, know how much tax you have to pay and submit accurate tax returns to HMRC.
Developing your start-up in to a flourishing business is a tough job, but with the right advice along the way, it needn’t be an onerous task. If you would like any further information on company formation, business planning, bookkeeping or accountancy please contact Jason Scholey firstname.lastname@example.org or telephone 0114 345 0960.