Dream Of Starting Your Own Business

July 26, 2015 by Andy Crow

The holiday season is here and whilst you are relaxing in the, perhaps thoughts of giving up your job and working for yourself are entering your mind. It’s a big step and there are plenty of risks but potentially even more rewards. There is a lot to consider and you certainly shouldn’t go into the process blind. Here are some of the major points to consider.

Write a Business Plan
Writing a solid business plan is crucial, and it outlines the goals of the business and how to achieve them. Whilst it might seem like you have a fail-proof way of doing things in your mind, putting it on paper will set the idea in concrete and it will give others a clear view of where your business is going.
A business plan is essential when you are first seeking financing for your business.

Rules and regulationsYou need to gain an understanding of all the regulations, taxes and licenses needed for your new company. Undoubtedly researching on your own is advised, but it is also a good idea to consult with your Business Adviser, Accountant or Solicitor. Failure to pay the wrong amount of tax or fail to obtain the correct licenses could result in fines and damage your reputation before you’ve even started.

What sort of company are you setting up?
You need to decide whether you want to set up as a limited company or sole trader. This is vital because it affects your financial and legal responsibilities as well as the amount of tax you will need to pay. Registering as a sole trader is easier and you will keep all the profits after tax, however, you will bear all of the financial and legal responsibility. Alternatively if you set up as a limited company it may take more time and setting up is more expensive, but it is less of a risk. You will be paid as an employee and you can opt to take dividends.

Company name
You should give a lot of consideration to your business name. You are going to be stuck with this name forever; rebranding is not easy, and it will cost money. Take the time and make the effort to find the right name for your business, and make sure that there is a web domain that is available.

How to get funding
Ideally you have all of the cash you need to launch your new company through self-funding. However, for most people this isn’t possible and you will need to seek funding from elsewhere. This could be through seeking an investor, getting a bank loan, crowd-funding or asking any friends or family members if they would be willing to help. You should also find out if you are eligible for any local business grants.

Get insured
It is vital to consider your insurance requirements. If you expect suppliers or customers to enter your premises you will need public liability insurance. If you have any staff, then you will also need to have employers’ liability insurance. These are requirements by law. It is also worth considering cyber insurance. If your website is hacked and brought down or sensitive information is stolen then you could be liable for damages.

Use the Internet
The Internet has brought many tools that can help entrepreneurs to succeed with their new businesses. The most powerful of these is your website. This is often the first thing that prospective clients will look at when considering to engage with your services. It is a permanent advertisement for you and your company and can turn into one of your best sales streams. Also consider how you use social media. Used correctly, platforms such as twitter, Facebook and LinkedIn can be very beneficial in promoting your products and services.

Seek Advice
Try to run your idea by as many people as possible. Speaking openly will help highlight weaknesses and flaws with your plan, which will allow for you to re-evaluate and become stronger. This will also be the ultimate test that will determine whether you have what is needed to be an entrepreneur, since opposition against your idea will only grow after your business has been created.

If you would like a free consultation or advice please contact Chorus Business Advisers on 0845 8671263 or email info@chorusadvisers.co.uk