What do you need to do a business?
If you want to be your boss, you have to have a correct mindset and a passion for being an entrepreneur and be prepared to say goodbye to your 9-5 job or keep your business for additional income. You are allowing yourself to use your hobby as a business.
First of all, you have to find a product or a service to sell, know the market situation for good. In other words, you got to identify that your product or service has got the potential market. Further, there are several factors to consider before launching your product.
Let us look into the accounting side of your business because if the books are not in order, you will be putting yourself in hot water with the government.
Here are some tips below.
In starting up a business as far as the financial implications for the firm: –
Decide whether you want to be a sole trader or a limited company.
If you want to be a sole trader, you need to register with HMRC, and for the limited company, you need to register with the HMRC and companies house to legalize your business.
Depending on your turnover, you have to decide whether you will become liable for VAT; if you think that will be liable, you need to register with the VAT section of HMRC. Registering for VAT depends on your purchases; you can register for VAT if you want to claim some of it.
How to get finances for the business,
There is a lot of small business help available from the government. You need a business plan to apply for it. You need to pen down еvеrу detail of the discussions, including the details of capital investment, type of business, money transactions, small business marketing strategies, advertising strategies. Your business plan will help you understand how much does it cost to start а small business.
Having insurance for your business is crucial as it will save you from any loss in the event of a severe incident.
Keep your accounting records separate from your files, such as income and expenditure receipts and mileage records if you use your vehicle for business purposes.
Have a business bank account, never mix up with your account, and also, it will also be a good idea to have savings account for your business.
Get advice from a financial adviser to learn about the allowable expenses that need to be taken off your business expenses when preparing to submit your tax return.
It is always essential to develop a system to maintain financial records; you can use either the Excel spreadsheets or install Quick Books, an accounting package, easier to learn.
Budget and cash flow are a vital part of your business; you need to set up and follow it monthly or weekly.
A plan of activities has to draw up and set your goals according to the business plan.
File your tax return on time otherwise; you incur penalties.
If you have employees, you create a payroll system to pay your employees. If you want to employ a self-employed person, it is your responsibility as a business owner to check that they get registered with HMRC.
When people start their business, they concentrate on finding products, marketing, and advertising and do not have enough time to deal with the finances; you will be better off outsourcing your finances to free up your time to improve your business.
If you have started your business in a partnership, outsourcing your finances will be ideal to avoid any conflicts between the partners.
As a new start-up, you will be comfortable starting your business from home depending on your circumstances, as it will save you a lot of start-up costs. It is also wise to involve your family members to help you out in the business to do specific jobs, as it will help you keep your costs down.
I hope these are tips are constructive, especially for a new starter, to start your business and keep it going successfully.
