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10 Simple Steps to start a Business

12 - 10 - 2021

We share 10 simple steps to help you build a successful business of your own:

Con1. Conduct market research, 

Gather demographic information about your opportunity, consider such things as Location, where are your customers? what competition is there in that area? What size is the opportunity for you? how much demand is there for your product/skills etc? This is where a basic 3-year plan can help you, plan where you want your business to be and highlight some realistic steps of how you’re going to get there, if you wish to talk it through, talk to an accountant, many offer free advice, (even if you don’t proceed further). 

 

2. Write your business plan?

 

The business plan is the foundation of the business, and enables you match your progress with a set of goals that you set. Take time to talk to a tax expert. It’s essential to speak with an accountant before you set up your business so you can have a clear idea of the most financially beneficial way of trading, an idea of what taxes you need to pay and what paperwork you’ll need to complete. 

 

3. Figure out your funding.

 

Be confident you have sufficient funds to live for a short period, as you may have to wait for some invoices to be paid. It’s then a good idea to have an idea of how much your business will make in a year and what your take home pay you may need. This will also help with your business strategy; your accountant should be able to provide an Income Illustration for you for guidance. 

 

 4. Choose a good business name.

 

Decide on your approach, Trading as Self Employed, or forming a Limited Company. You’ll want to choose a business name that attracts clients and reflects what you do. If you are setting up a limited company, you can check if your company name is free to use by checking on https://beta.companieshouse.gov.uk/company-name-availability

 

5.  Register your business for all necessary taxes and schemes.

 

Legally, you will need to register your business for all the necessary taxes that a business is liable to pay. There are also some schemes that you can be registered for, which can maximise your income.

 

6.  Set up a business bank account.

 

You’ll want to keep your personal bank account separate from your business account. If you’re setting up a limited company this is a legal requirement and can only be set up after your company has been incorporated.

 

7.  Insure your business.

 

If you have a business, you’re going to need good business insurance should anything go wrong. Most business insurance will cover you for Professional Indemnity, Public & Employers liability. Some accountancy packages may contain free insurance, saving you some expenditure. 

 

8.  Understand your cash flow. Keep good records.

 

From keeping records on a simple spreadsheet to investing in online packages, keep bookwork up to date. Some companies can take a while to pay an invoice, to bear this in mind when your business needs to pay for something as this can affect your cash flow meaning you’ll be short of cash in the business. Accountants can usually provide simple bookkeeping tools and advice. 

 

9.   Make sure you’ve prepared.

 

If you need to buy a kit ready to trade, you can claim these as business set up costs and claim them back tax free. 

 

10.  Go get some work!

 

Some people set up a business to contract and often find it easier to find work through an agency. Other people prefer to trade directly with their clients. Either way, you’ll need to go out and find some sort of work. 

 

Foremans LLP can help you consider all these options, if required register your business for you, help you with a business bank account and create a payment illustration so you’ll have a clear idea of how much your new business will make. All our advice is completely free & if you do decide to come on board with us, you’ll receive free business insurance (stc) saving you up to £500 a year!  

 

 Get in touch with one of our team today by calling 01978 364000 or emailing   ContactUs@foremansllp.com

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Fixed Data

Assumptions

General                                                                                                                              

• The user is over 21 and subject to tax in the UK
• The user wishes to minimise their tax liability
• The user is subject to national insurance i.e.he/she is not over retirement age
• Only current tax rates and limits are applied
• No tax mitigation payments are made e.g. pension contributions
• Only 3 digit letter 'L' tax codes shown in the drop down list can be entered 
• The user does not have a turnover greater than £100,000 where fewer reliefs and or higher taxes may apply

Expenses

• All miles claimed as expenses are for business use using a personally owned car or van
• All other expenses claimed are wholly, necessarily and where appropriate exclusively for the benefit of the business

Foremans LLP Charges

• Foremans fees associated with Limited Company, Sole Trader or Umbrella are as per published rates
• Foremans current Service Costs are allowed for in all calculations.

Holiday Pay

• Holiday pay is accumulated week by week by Umbrella or Agency employer but paid out during the year

VAT

• Limited Company or Sole Trader will be VAT registered
• Limited Company or Sole Trader will take advantage of Flat rate VAT
• Flat rate applied includes the benefit of the additional 1% applicable to the first year of VAT registration

Limited Company Conditions

• One director / one shareholder in a Personal Service Company
• Director of Personal Service Company elects to vote for 100% dividend after salary, costs and expenses
• Director's salary is maximum salary to the primary threshold for NI
• The Limited Company is trading normally i.e it is not subject to IR35 and is not a Managed Service Company

NOTES

• The Current tax rates are taken from the Fixed Data Table
• The current Value Added Tax Rate is 20% and is applied to all invoices and expenses as appropriate
• The Director's Salary is fixed in relation to National Insurance thresholds. Higher Rate Taxpayers should consider the advantages and disadvantages of a larger annual salary or bonus
• Higher Rate Taxpayers may wish to consider the advantages and disadvantages of shared ownership of their business
• Users with a tax code other than three digits and letter "L" may telephone or email our Development Department to request a detailed calculation
• Generally the use of an Umbrella rather than an Agency payroll is only efficient if sufficient weekly expenses are allowable and claimed
• The expenses claimed under an Umbrella should not prevent the proper operation of National Minimum Wage