Just the other day, I mentioned that perhaps starting your own business or entrepreneurial venture could be a way to create a job for yourself. If this is something that piques your interest, this just might be the article for you. Opening your own enterprise evokes a battle between exigency and excitement. Watching your business ideas be born into reality is a proud, but nerve-wracking experience, which can make legalities and formal matters seem complex.
The key is to not over complicate anything that needs addressing; consider the implications it has on your business independently, take action and move on. Don’t waste time worrying, create a simple start-up checklist and ensure all the basics are covered before you embark on any occupational adventures.
1. Name Your Business
Coming up with a business name can be difficult. We are often over critical of inspiration and ideas when making such important decisions, but there are a few things to consider when reaching your final choice.
Ensure that your name of choice doesn’t hold negative connotations or allude to rude or vulgar references. You also need to check that no one else in your local area runs a business with the same name, and ideally that a related domain name is available.
2. Write A Business Plan
Business plans are vital for every company, big or small. As well as being a useful tool for obtaining finance, business plans enable you to gather your business aspirations and aims and present them into an organised strategy.
Once complete your business plan should contain proposed marketing drives and financial aims which can direct your decision making and keep you focused during demanding and problematical periods.
3. Take Out Insurance
Before you provide any service or sell any goods, it is imperative that you insure your business. The current ‘claim climate’ means that all companies are at a higher risk than ever from liability claims, many arbitrary.
Compare business insurance online and be sure to take out all cover you need to protect all work you undertake for your company. Employer liability insurance is a legal requirement for those who have anyone from employees to volunteers assisting their company, while public liability insurance is an optional – yet essential – extra.
4. Register Your Business
As soon as you start working for yourself you will need to contact HMRC to inform them of your employment status and the details of your new business.
Read HMRC SE1, visit https://www.businesslink.gov.uk/taxhelp or call the self-employed helpline on 0845 915 4515 for more details.
In the United States, a business is usually registered with the state in which the business is set up through the Secretary of the State and the State Board of Equalization.
5. Open an Account
Opening a business bank account simplifies your accounting system, meaning that you are able to distinguish easily from your personal funds and your professional capital.
Having you income and expenses enter a dedicated account simplifies self assessments – just print off your statements and keep hard copies of your receipts and invoices.
6. Check For Finance Options
Small and medium enterprises (SMEs) are vital to the current climate. At a time when jobs are scarce, SMEs are providing work for a wide scope of skillsets and preserving the sense of pride Briton’s have in their work.
The government recognises the impact SMEs have on both the economy and the community, and encourage their growth through various grand and loan schemes. While some opportunities are nationwide, local councils will have region-specific finance that you could benefit from. Make an appointment at your town hall to discuss your needs.
7. Manage Your Money
It goes without saying that managing your money vigilantly for 12 months can be a challenge. Make this task as simple as possible for yourself and set up straightforward systems. Using a program such as Quickbooks can help keep track of invoices, expenses, and banking that makes it easy to file taxes the following year.
You are required to keep a record of your expenditure and income. Your business bank account will provide statements, however keeping a spreadsheet and hard copy receipts and invoices will ensure you have all required documentation to hand.
8. Establish an Online Presence
Having a business in the 21st century is excellent for marketing and promotion. While you find your feet in the world of SME, set up a company website using a free creator such as Wix and establish a social media presence by starting a Facebook business page and Twitter accounts.
9. Set Up Your Office
Once you have established your business name, embark on a branding adventure and create a logo and slogan for your business. Brand your office stationery and upload your logo to your email footer.
10. Consider PAYE
Depending on the nature of your work, you may want to employ a workforce as soon as possible. Remember that with staff members comes the obligation to register with HMRC for Pay As You Earn (PAYE). You are also legally required to take out employers liability insurance.
Don’t delay over legal and financial matters – compare business insurance online, set up your business account and register with HMRC. Self-employment needn’t be taxing, a few simple steps and you’ll be fully covered to pursue your business dreams.
6 Comments
Have you read the $100 startup? It has some good tips on how to get a small business off the ground quickly. The most important thing is to take action and create a product/service that people want.
@Joe – I’ve seen that book but haven’t read it yet. It’s one I definitely need to check out!
Great set of tips. Establishing an online presence is one step that’s new and indispensable in doing business in order to keep up nowadays. Thanks for the handy registration pointers.
Most new aspiring businesses owners think they’re supposed to sit down and write a detailed and lengthy business plan, making all sorts of wild assumptions about how much money you’ll make in five years, and so on. Some people worry so much about dotting every “i” and crossing every “t” until their plan is just perfect, they never start their business. For a basic business, I favor a one-page business plan that covers what you offer, who you’re targeting, how much you’ll charge and what you’ll do to make it happen. It’s a fluid process that will change once you dive in, so keep it simple at the start.
@Michael Davis- That’s a good point; you don’t need a lengthy plan, just an outline really. If a person is organized and has a set goal, they should be able to develop that business with time and perseverance.
I would say forget everything and concentrate on starting small and then gradually adding up. reading 10 steps that are required, 9 out of 10 people will stop thinking about starting a business. Honest opinion.