How do I get started in business?
Where to start
Ok, so you've had a job working for someone else and maybe it wasn't for you? It is never too late to start your own business. The key to starting a successful business is to ensure that you plan your ideas thoroughly and do plenty of research; and here is a guide to help you in terms of what you really need to know.
There are a variety of internet sites that will help you research the type of things you need to start your own business, and there are always lots of useful books you can buy or borrow from a library.
First of all, you should look at other successful businesses around you, if you know someone who has their own business, ask them how they started the process and listen to their advice.
They are likely to have encountered set-backs that they will be able to share with you, and may have made mistakes that they can advise you on. Not all of the advice you receive will be the same, so it is important that you make notes of the advice that is applicable to you and disregard the advice that isn't, so you are not drowning yourself with unnecessary information.
Considerations when setting up your own business
If you are considering setting up your own business, you should ask yourself why you are setting up your own business in the first place. For example, are you setting up a business because you have qualified in a new skill or trade?
Have you spotted a gap in the market, or are you setting up a business because you want the freedom of being your own boss? Think about your personal life and consider how it will effect you in terms of what you do on a day-to-day basis. If you have commitments like a family, a mortgage, or debts, it is important that you prioritise these effectively.
Be realistic and ask yourself if you will be able to maintain the lifestyle you have or if this will effect your personal life in any way.
Setting up and running a business is going to be a big commitment, it can completely take over all other aspects of your life, so if you don't feel that you are able to fully commit to it, you could fall at the first hurdle.
It is essential that you are committed and motivated, and although you should be enthusiastic, careful planning and preparation is the real key to success.
All the successful business men and women in the country got there through nothing more than hard work and determination, so if you meet that criteria, then you fall into the right category to make your business succeed.
Funding your business
If you have debts, starting a business can be a difficult move. The first few months of your business opening can be quiet as you are building a client base, and the last thing you will want to deal with under such pressure are bill reminders flying through your letterbox left, right and centre!
If you do have debts, and most people do, it is advisable that you seek advice on how to clear these debts first, or at least keep them at bay so that your debts aren't eating up your finances. There are lots of companies out there who will manage your debts for you, most of these companies will charge you a small fee, but it can be easier than having to organise all of your debts yourself.
When you are so busy planning for your new business, there may be certain debts you forget about who will take great pleasure in charging you when you least want them to.
Plan, plan, plan!
It is advisable that you create a clear and thorough business plan, as this will enable you to see the potential of the business and outline the key elements of what really needs to be done. You can get advice on writing business plans on the internet, from a friend who is already in business, or from a local library.
Your business plan will need to state the objectives of your plans. Financing, marketing, business objectives and future projections should all be considered.
There will be plenty of paper work to read through, so if you aren't keen on attention to detail, it may be advisable to get someone to help you to read through the 'small print' to ensure you are accounting for everything.
If you already have a job, full or part-time, and are left with any of your earnings after your commitments, it may be a good idea to try and stay in your position in order to save for the set-up of your new business.
Leaving a job with no money for the initial set-up can be much more difficult than if you'd have waited until you had some financing. If you aren't able to save any money due to other commitments it isn't the end of the world, why not speak to an investor or lender? You can talk to your bank who will be able to give you advice on getting a small business loan or grant.
There are plenty of different schemes available which will enable you to seek funding for your business, and by researching your options you will ensure you are lending from the right person. Again, you should compare interest rates, look at your repayment options to make sure that you are getting the best deal available.
If you are concerned that your lack of finances won't allow you to reach your full potential, or that you will be unsuccessful in getting a business loan or grant, why not consider going into business with a partner?
Business Partnerships
Having a business partner can be a great way to start a business as they may be able to contribute financially, and support your ideas. A business partner may even have different ideas to you that will benefit your business and enable you to achieve its full potential.
Going into business with someone else can be a daunting process, it is essential that you are able to trust the person completely. Not only are you going to be spending a lot of time with them, you are also going to be sharing all aspects of your finances and other details with them, so make sure they have the businesses best interests at heart.
Talk to them openly and ask them what they are looking to achieve from joining as a partner? It is crucial that they are as committed and enthusiastic as you are about your plans as the last thing you want is for them to walk out of the business when you are struggling.
You may find that your business partner and you have different skills that will compliment each other and contribute greatly to the success of the business. For example, the other partner may be better at dealing with the marketing and paper-work for the business, whilst you may be more practical and hands-on.
Either way, if you are serious about going into business with a partner, it may be advisable to agree a contract with a solicitor to ensure that you are both binding to an agreement legally.
Employing Staff
How do you ensure that you are employing the right people?
If you are a 'tradesman' for example, you may need to ensure that you employ someone who is fully qualified and that they will meet your expectations.
Make sure you thoroughly research hiring employees, and consider the various implications that arise when hiring staff.
• Will your staff be working on a full-time or part-time basis?
• Do you require office or clerical staff to take bookings, or deal with your accounts?
• Check out the different types of liability insurance you may need to cover staff members and any work they carry out.
• Consider the different ways in which you could pay their wages and what would be the least hassle. Make sure you contact HM Revenue & Customs for further advice on paying and registering your taxes.
You should consider that hiring an accountant can be an expensive process, there may be other options available to you like getting a business support package that will help with your tax-returns or any tax investigations.
Depending on what type of business your are starting, you may need a solicitor, or an accountant to guide you, so make sure you find the one that is right for you.
Choosing the right location for your business
You should consider whether you are going to be a mobile business and work from home or have your own premises. Having premises in the early stages of a business can mean that you are spending a lot of your earnings on overheads, and it can be hard to make a profit if you have to pay rent, and other running costs.
Depending upon the type of business, it may be worthwhile purchasing a vehicle and setting up a mobile business, you could always look at getting a premises at a later date, once the business is fully set-up and running. Not only is this beneficial because you can save money in the early stages, but whilst the business is picking up, you can spend time at home working on marketing your business successfully and ensuring you are in all of the right publications.
Research other businesses in your area and ask yourself what makes your company unique? What are your objectives? Do you have a name for the business? Make sure you choose a name that potential clients will buy into, and when you are advertising make sure you inform your potential clients clearly of what services you provide.
Choosing your company status
Are you going to be a Limited or non Limited company? Many people are confused by what this really means and why this is so important.
The disadvantage of being a Non Limited company is that your personal assets could be at risk in the event of failure of the business, but this is not the case for a Limited company.
Despite this, many people prefer to set up as a sole trader as the process is a lot easier and can be done almost straight away.
Should you choose to set up as a Limited company, as long as it is operating legally and complying with the law, the business and the employees of the business will not be at risk of losing any personal assets, should the business fail.
Registering for VAT
Being VAT registered is something else that many prospect businesses are unsure of. For more information on whether or not you need to register your business for VAT you should contact HM Revenue & Customs (HMRC).
You only need to register your business for VAT, if it earns a certain threshold, so contact them and ask if you fall into this category. They will be able to advise you on what you need to do to become a VAT registered business.
To Summarise...
The key to successfully setting up a business is to ensure you do your homework! You need to browse articles, do plenty of research and talk to other businesses around you.
You should seek advice from reputable sources and that you make notes and create a thorough business plan and use it as a guide to help you. It is important you talk to friends or relatives about your ideas, as they may be able to assist you with details you have missed. You should try to gain as much information as possible, knowledge is power.
Ultimately, the great thing about setting up a business is that there is no right or wrong person to do so. You can be any type of person and you don't always need to have qualifications to achieve your goals.
Providing you are hard-working, and determined to make your business succeed, then any successful business will tell you that you have the right ingredients for success.
