Starting a new business – what do I need to consider?
It is the ambition of many people to run their own business. With the Coronavirus pandemic this dream has become a reality for some who have been made redundant, whilst others may decide to start up in business to be more independent and to obtain the full financial reward for their efforts.
Whatever the reason for considering setting up in business, a number of dangers exist.
A major concern must be the risk of business failure despite considerable effort and finance having been put into the venture. Time spent in making the decision and thinking through your plans will minimise the risk of failure.
Think carefully about ceasing to be someone else’s employee. Certainty of income, both in terms of quantity and regularity, disappears; whilst fixed outgoings such as mortgage repayments, remain. Similarly, other benefits of employment may be lost, such as life assurance cover, a company pension, medical insurance, a company car, regular hours and holidays.
Consider the views of your family and friends. Their support is essential. It is important they understand that the administrative and financial requirements of running a business can be time consuming and stressful.
Success in business depends on many factors which will need to be considered before trading begins; most important is the need to critically review all aspects of the business proposition before progressing too far.
You will need to consider all the above very seriously, involve your family and make a trial business plan.
Whilst some generalisation can be made about starting up a business, it is always necessary to tailor the strategy to fit your situation. Any plan must take account of your circumstances and aspirations.
We are here to help
Whilst business success can never be guaranteed, professional advice can help to avoid some of the problems which befall new businesses.
We would welcome the opportunity to assist you in formulating a strategy suitable for your own requirements. We can also provide key services such as bookkeeping, management accounts, VAT return and payroll preparation at an early stage. Please contact us to find out more.
We can help you to plan and answer any questions you may have.
Request a copy of our New Business Kit
If you would like to find out more about the financial, tax and accounting considerations of starting a new business, get in touch with our team on 01274 733184 or email firstname.lastname@example.org and request a free copy of our New Business Kit.
Our kit offers a handy reference guide that highlights many of the practical points that require consideration before trading begins however, we recommend that you seek professional advice on anything you are unsure of – the benefit of doing so will far outweigh the cost.
This kit highlights many of the practical points that require consideration before trading begins. It cannot cater for every possibility and decisions should be supported by appropriate professional advice.
If you have a business idea and you’ve thought about your plans, there’s still a lot of things to get done and new skills to learn to ensure you are good to go. Tax can be complex and cashflow projections will need to be done to help you get finance, premises and credit.
It’s a little bit light doing a Jigsaw and that’s where we can help with support and expertise. Please ask us how we can help
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