Maybe you have got the recession blues and are afraid that you could be fired shortly. Maybe you’ve just been fired anyway. Whatever the motivation, you’ve decided the time is right for starting up your own small business. A little thought and planning will help you to avoid the pitfalls and the mistakes that new entrepreneurs often make because there is no point in simply diving off the deep end. We explain below a few of the considerations involved in starting up a business from scratch.
Choosing the right business: choosing the right business is of course the key to doing well and anything else that follows flows from this basic decision. In the era of the Internet, it is possible to make money from virtually any activity that you turn your hand to. You have to make sure that there is a niche available in the market that you can exploit better than anyone else and where your skills will fit the opportunities. It also helps if you have a passion for the business you are about to start because the motivation and dedication inspired by this passion will improve your odds of success and see you through the initial hard times. For instance, if you enjoy teaching, consider starting up your own small business as a teacher, either face-to-face or over the Internet. If you are strong in financial matters, consider providing financial advisory services on a part-time basis.
Choosing the right format for your business: there are different ways that your new business can be structured. And, if you choose the wrong structure at the start, that can give you problems later on. Becoming a Sole Trader is the simplest structure to start. As a Sole Trader, you are your business. While it is simple to set up, there can be advantages of using another structure. For instance, if you set your business up as a Limited Company, then your business is its own separate entity. This might give you some valuable asset protection and tax minimisation advantages. Or, if you are going into business with somebody else (or as a group of people) then maybe a Partnership structure would be better. Or, even a Limited Liability Partnership structure which is a cross between a Limited Company and a Partnership. There is no one structure that is right for everybody, which leads us to the third really critical thing to remember when starting up your own small business, which is to find a good accountant who will help you find the structure that will be best for you.
Find a good accountant: It is often a good idea to get a good accountant on board as soon as possible. He (or she) will prove to be a jewel beyond price in your business planning and your fund-raising exercises besides providing general business advice in areas such as taxation. You will obviously lack many skills required in planning and implementation of your new business and an accountant can fill in a surprising number of gaps. You will find that your his fees may well prove to be one of your best investments when starting up your own small business.
London Accountants David Grant