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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). 

 

 

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