Starting a business
In this article,we take a look at a few things to consider when starting a small business. Once you’ve decided that you want to go into a particular business, a good first step is to do some research on the industry you want to break into.The next thing you really should do is draw up a well thought out business plan complete with figures based on your research and your best estimates of costs and revenue. The process of formalising your business idea in a plan gives it substance and structure, helps identify what you need, and gives a much needed direction of travel.
Most people start out in business as sole traders. Quite simple , they start buying and selling items straight away. As long as they observe all relevant laws, rules and regulations, they should be ok.
Partnerships arise when two or more persons go into business together. In addition to observing all relevant legislation, a partnership requires partnership document detailing profit share,
Limited company: You could decide to seek the benefits of trading through a company immediately, to this end you would immediately incorporate a company.
There are other business structures available,but these are the most popular.
If you’ve chosen to go with a company, will need to get a company registered at companies house. This will mean providing the details of the director(s),possibly yourself, shareholders details, desired capital structure, a UK address as registered office, the nature of the business. once the company is registered ,you should receive a certificate of incorporation and memorandum and articles of association. These are very important documents and should be kept securely.
if you’ve chosen to be self employed ,you should register as self employed with HMRC as soon as you can,HMRC automatically picks up all companies on incorporation. However,companies are required to notify HMRC on the commencement of actual trading. In both cases,HMRC requires notification within 3 months.
Now run your business
Now that the preliminary processes have been seen to, now run your business. Get finance for fund your activities. Acquired the assets you need. Commence book keeping as soon as you start, keeping receipts for everything.make sure you’re compliant with any applicable legislation. Public liability insurance and other business insurances are important and can be very affordable. If you want to employ people, you’ll need to register a payroll scheme. Payroll is sensitive, you might consider getting external payroll services.
There is quite a bit more to starting and running a business and we intend to expand on these items in future articles