A positive knock on effect of the current economic downturn is that there has been an increase in the number of people that are considering starting their own business. From personal experience there are many rewarding moments, some long hours some challenging times and some moments when you question your sanity and whether you are doing the right thing.
Just like any other business, there will be ups and downs in your business days. No two days may ever be the same. One day you will have many profitable clients, and another day they may simply disappear. If you do not have a strong disposition bolstered with plenty of passion and a large sprinkling of professional support you may want to give at the first hurdle.
Here are some of the key areas that require consideration before launching your business;-
1. Company formation
What will the legal structure of your business look like? Will it be a limited company, a partnership or is it going to be a formed as a sole trader? Do take the time to consider the financial and legal compliances which are attached to the different structures. Find out about the tax advantages and disadvantages attached to the different legal structures.
Most people attempt to write a business plan themselves. However very few will actually complete the task. A variety of reasons including too many interruptions, insufficient time or having to answer to many tough questions usually leads business plans being left half finished. Why not seek some professional help to complete your plan. Hence you will be starting off on the right foot?
3. Financial planning
Naturally as a firm of accountants Yorkshire accountancy believes that financial planning is a key component of starting a business. Using the services of an accountant at the start of your business to assist with your financial planning of your business can make a big difference between success and failure. Running a business without a financial plan is similar to ‘driving a car with the windows blacked out’.
4. Business Tax
Tax, tax, tax is that word which elicits a variety of responses from business owners. There can never be enough emphasis on giving sufficient time and thought to business tax. It will also help you to avoid any nasty surprises or demands from the tax man. Reducing your tax bill should always be at the forefront of your mind. Knowing what you can or cannot do in relation to taxes can vastly assist in making sound business decisions.
5. Shop around and investigate the market
Last but not least take the time to shop around for cost effective services. With the aid of the internet you will be able to conduct extensive research and find lots of free information about starting a business. Additionally paying for some professional help and advice from the beginning will stop you making many costly mistakes. Look out for free software, consultations or cheap online services that will help to start your business with a spring in its step
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