For the uninitiated, setting up a business can be an intimidating prospect. Experience counts for a lot in the business world, but unfortunately this is a commodity newcomers don’t have.
Rather than dive in head first, it’s important to take your time to think about what you want to achieve. Firstly, acquire the right knowledge to help you succeed then develop a clear plan for how you will reach your targets.
With this in mind, we decided to write a blog post detailing 3 of the most frequent questions we get asked by our start-up clients.
How do I structure my business?
It is imperative you choose a suitable business structure that will allow you to achieve your goals.
The type of business you choose to set up will depend on the following factors:
- Will you be the sole owner of the business or will it be owned by several people?
- How much personal financial exposure do you want to take on?
- How much time can your business dedicate to administration?
- How much start-up finance do you have?
Common types of business structure include: sole trader, partnership, limited company and limited liability partnership.
Contact us for further information about these business structures.
How do I write a business plan?
Writing an effective business plan not only makes it easier to access certain types of finance but helps you develop a clear idea of what you want to achieve and how your business will operate.
Include the following pieces of information in your business plan:
- your business’s name, objectives and mission statement
- your short, medium and long-term goals
- the type of customer you’re targeting and the market you’re operating in
- information about the product or service your business sells
- financial projections: sales, expenditure, your break-even point and your planned sources of finance.
How do I finance the costs of starting a business?
For some, launching a business can be done through savings alone. However, the majority of aspiring business owners will have to look for alternative sources of finance to get their business off the ground.
Calculate exactly how much money you’re going to need and then take a look at the following as possible sources of finance:
- bank loans
- start-up loans provided by the government, worth up to £25,000
- trade credit
- private investment
- peer-to-peer lending and crowdfunding.
Talk to us about raising finance for your business.
Are you thinking of starting a business?
Our team of business advisers and accountants can assist you every step of the way: from writing your business plan and applying for finance, to handling your payroll system and managing your accounts.