Top 5 things to be aware of when starting a business
Updated: Oct 14, 2020
Starting a business can be a monumental task, it requires careful planning, determination, and consideration to execute correctly. It’s been shown that 50% of start-up businesses fail in the first year, emphasising how difficult the task really is. In spite of this, we still see the SME market grow year on year. Even during Covid, when the economy is arguably at its worse point, we have still seen a huge increase in small business as people have created their dream jobs on the back of lockdown.
It can be a bit overwhelming even knowing where to start when it comes to creating your own business. Whilst most entrepreneurs dream about the future and where they want their business to go, many forget about the fundamental aspects needed to get every business in a good starting position. But not to worry, we’ve broken down a checklist of the 5 top tips to be aware of when starting a business…
1.Register your business with HMRC
Whether you’re a sole trader, limited company or in a partnership, registering your company with HMRC is a priority. If you don’t already know, HMRC is the UK’s tax, payments and customs authority who collect money that pays for the UK’s public services and help families and individuals in need of financial support. Once you’ve registered you will need to record all of your incomings and outgoings accurately each month, so this means keeping note of all business transactions and a place to keep invoices and receipts as evidence for the record. Although this may seem like a right chore, there is software that can help you with this to make the task a little less daunting. A lot of people also choose to work with an Accountant or Bookkeeper. If this is something that interests you or you feel you need help with – get in touch with one of our team today.
Although your business idea might seem great to you, there is no guarantee that this new idea will be a commercial success - this is where market research comes in. This allows you to get an in depth understanding of your audience, competitors, business trends and much more. The more research you have under your belt the more likely you are going to be able to build your brand and market it successfully to your target audience.
3.Write a business plan
Even if you’re not a planner, you can’t escape a business plan if you want to build a successful business. A business plan helps clarify your business idea and spot any potential problems you think could arise. Not only is it clearer to see all your thoughts once you’ve written them down, it also enables you to set out your goals and measure your ongoing progress against these. If you have no idea where to start, don’t panic, there’s lots of templates that you can use on the internet and even ones directly on the government website here.
4. Understand your figures
It’s all good and well having a great idea but if you don’t understand your figures, how are you ever going to be able to make money from it and make it a form of income… A few pointers that we believe are essential for you to understand are your cash flow, your monthly sales and expenses, and profit margins. If you’re not so keen on keeping a track of your finances, there is plenty of software available to help you. Once your business is up and running and making a profit, you could always look at outsourcing a book keeper or accountant to do the leg work for you. This is a great way to keep your finances in check and free up your own time for you to focus on other areas of the business.
5.Have a passion for what you do
Last but by no means least, you need to have a passion for your business! This will really help when things get tough or when you’re not having a great month. You can remind yourself of why you started this journey in the first place and find the motivation to push through and keep going.
Starting up a business is by no means an easy feat, but with these steps we hope to have given you some guidance and a push in the right direction. If you wish to discuss any of the previous steps or how we could help you with the above please get in touch – our dedicated team are experts in a variety of fields and ready to help you.