Starting a new business can look a bit complex, especially for new small business owners; however, by taking informed steps, you can begin to build your business with commitment. Before you go into a business, you need to have an idea of what you are starting, how to go about it, how you want to face any challenge that may arise, have proper planning, make necessary financial decisions, get the essential legal documentsand more.
Here are steps you can take when starting a new business:
It is not enough to have a brilliant idea without understanding how the industry you are entering operates. You need to know who you are competing with, their mode of operations and how you can better them through the products or services you hope to render. You also need to know your target demographic; they are the reason you are starting the business. Know their buying decision and needs, this will help you offer products and services that will meet their specific needs.
Decide your business type
You can set up your business as a limited liability company or run a self-employed business. If you opt for self-employed, your business is not separate entity from you. You can withdraw any amount of money from the business and you will be taxed on the profit you make and not on your earnings. However, if you go for a limited company, you will have to register your business with the Companies House and also earn salary as the director.
Your business plan is the bedrock of your business. It is the blueprint on how to structure your business, operate and grow it. It will lay out the details of each phase of the business from start-up to establishment. A business plan is particularly needed if you are seeking funds from investors or financial institutions.
Plan your finance
Starting a new business requires you to have the capital to finance it. You need to know what it will cost to put necessary things in place, including property leases, licenses, and permit, equipment, legal fees, inventory, branding. etc. You also need to have extra funds that will keep the business going till you breakeven or start making profit. You can save money to start your business or you can source for funds from investors, financial institution or even family and friends.
Your business name matters a lot. It plays a huge role in the branding of your business. Also, you need to register your business name with the appropriate authority Think it through before you settle for a business name.
At Lukro, we help businesses to check the availability of their chosen business name and also offer business name registration services.
Get necessary licenses and permits
You need to get necessary legal documentation that pertains to the type of business you are starting and your location. You need to know the licenses and permits you should get to avoid going against the law.
This is the most important part of your business. How you handle your finances and records determines the success of your business. You need a functioning bookkeeping service to create and manage your budget, coordinate your financial records and file taxes. You can handle it yourself or you get the services of a qualified bookkeeper. Hiring a bookkeeper will help you to focus on other aspects of the business and you can always leverage the experience and expertise of a professional bookkeeper to make informed decisions about your business. We can assist you to choose an accounting system that meets your business needs and we are happy to help you set up your business on Sage, Xero or QuickBooks.
Set up your business location
Choose a location that is accessible to your customers.
If your business requires you to hire employees, you can start the process as soon as possible. Outline the position you want to fill, job responsibilities for each position and qualification of employees you want for each position. We are always happy and ready to help you handle your Payroll tasks.
Written on 2019-01-15
This article was written by Agnieszka - a professional bookkeeper with several years of experience in the financial service industry. Agnieszka works with Lukro Ltd, the accounting and bookkeeping company provides professional and friendly bookkeeping and business support services to individuals, sole-traders, partnerships, and small businesses. We help welders, plumbers, engineers, electricians, hairstylists, beauty therapists and many more.
Bookkeeping is the daily recording of business financial transactions, which include income and expenses. It is necessary because it helps to measure the performance of the business. Proper bookkeeping makes it easier for companies to keep track of all their financial information.
The COVID-19 pandemic is impacting most small and big businesses in the UK negatively and forcing business owners to find a new way to survive. Read more to find out how can our online bookkeeping services can help you stay in business.
A common misconception is that bookkeepers and accountants are the same. To hire the right expert for your business, you must understand the differences between an accountant and a bookkeeper.