As the home of the business start up services Peterborough entrepreneurs recommend, we are very experienced when it comes to guiding new businesses to success. Here are our top financial tips for starting your own business.
Decide on your business structure
One of the first things that you do should be to decide on the structure of your business. This will have a huge impact on your business, so think carefully. Below are the options available to you:
• Sole trader
• Partnership
• Limited liability partnership (LLP)
• Limited company
• Not-for-profit organisation
It’s a good idea to consult a small business solicitor when deciding on the right structure for your business, as they will be able to offer a professional, unbiased opinion and break down all of the legal jargon associated with the options available to you.
Draw up a business plan
If you haven’t done so already, it is time to draw up a business plan. This is different to a business model. Having a great idea is one thing, but showing that you know how to build on that is essential to your success starting out. Investors and lenders will want to see a detailed business plan before they give you any funds. There are lots of great resources out there to help you write a business plan, and many of them are free.
Look for government funding
It’s a good idea to see if you are eligible for any grants. The UK Government is committed to helping people get their businesses up and running, and there is a wide range of grants and other financial assistance measures. Some of these will be dependent on the area in which you are based and what field you are in. There are also loans available for those who have been unable to secure funding from a bank or similar mainstream provider.
Get insured
Don’t forget insurance! Starting a business isn’t just a matter of launching one day – you need to make sure that you are full insured in all the appropriate areas. If you employ staff, then you need to have employer’s liability insurance, and if you have any business vehicles then you need to have commercial motor insurance. Public liability insurance, professional indemnity insurance, and other kinds may be required too. If you’re not sure, speak to a qualified financial advisor with experience in the field.
Hiring staff
Last but not least, you need to think about how you are going to pay your staff if you are planning to hire any. Some people prefer to use freelancers, sub-contractors and agency staff while they are getting started. If you do decide to make the switch to permanent staff, then you need to ensure that you are able to do the following, as they are all required by law:
• Pay the minimum wage or above
• Enrol applicable staff into a workplace pension scheme
• Provide statutory minimum paid holiday and sick pay
• Provide paid maternity, paternity and adoption leave
As you can see, hiring permanent staff members is a big financial commitment! Be sure to seek the advice of your accountant to see how they can help you. Here at Linda Carr Accountants, we can help you to set up a monthly payroll.
How we can help
We have lots of experience helping first-time business owners getting to grips with their finances. To find out more about the business start up services Peterborough clients trust, please get in touch with us for a no-obligation discussion today.