Firstly, massive congratulations on making the decision to start your own business. It can be a mixture of emotions, from excitement to nervousness and everything else in between. Having recently made the leap to becoming self-employed myself, I know that it can be really daunting but incredibly rewarding at the same time.
You should have a business plan in place and you will hopefully know your product/service inside out and how you will target your client/customer. But apart from this, and whether you can make a living from your new venture, have you thought about what you need to do to get your business started? There are so many things to think about and it is best to have a clear idea of what you need to do and a realistic start date and you can do that by putting a plan in place with timescales.
Considerations for any new business:
- Have you thought about the best option for your business set up whether that be sole trader, partnership, company etc.
- You will need to think about projected set-up costs and how will you fund the business initially and possibly look into business loans or grants.
- Have you set up a business bank account yet? If not, have you thought about who you will bank with and whether there are any associated fees? Normally banks offer 12-18 months of free banking for startups.
- You should prepare cash flow forecasts and budgets so that you have a good idea of your finances and you will also then have a comparison when you start trading.
- If you are employing staff make sure you budget for not just the gross wage, but employers NI and workplace pension contributions.
- You will need to think about the legal agreements or contracts that you may need for customers/clients, staff and potentially contractors too.
- If we are talking about websites then we will also need to think about social media, which accounts will you set up and what content will you post and how regularly will you post?
- A very important thing you will need is business insurance, you will need different levels of cover, depending on what you are doing and whether you will have business premises, employees etc.
- It may be something you have been putting off but you will need to think about bookkeeping processes and accountancy software. Luckily there are lots of tools to make this bit easier and accountancy software has got a lot more user friendly recently.
- If you were employed before, you will need to notify HMRC that you are going self-employed.
- On the subject of taxes, you will also need to think about National Insurance Contributions and also about whether you want to invest in a private pension.
“But there is so much to think about, I don’t have time to do all of this!”
I understand how daunting this list can be and it is not exhaustive, there are a lot of other things to consider as well. Have you thought about hiring someone to help you to do this? If so, you should think about using a Virtual Assistant, like myself. I can assist new start-ups with many of the above tasks, finance and administration to help you have the best start to business. Or you can contact me to find out more.