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Starting your own business

Category: Start Ups | Jun 9, 2019

Starting your own business and what you should consider

Initially, it can be quite exciting – and even a boost to the ego – to give out new business cards with your name above the words “managing director” or “proprietor”.  But the new title doesn’t necessarily live up to expectations for very long…

Starting a business from scratch can be a long and arduous process. And even when it is up and running, there is no cast-iron guarantee that endless amounts of cash are going to be dropping through your letterbox or appearing on your bank balance.  The only certainties are long, lonely hours of hard work with nobody to share your new frustrations, stresses and concerns.

So why exactly have you chosen to enter the lion’s den of creating a new business? You are obviously better than your competitors and you must have something special and unique to offer potential customers. But even if this is true – and you have eager clients hammering at your door – there is an awful lot to think about and achieve before you can start giving out those business cards…

Firstly, what is going to be the legal structure of your new business? Limited liability? Sole-trader? Partnership? Depending on exactly what you have in mind for your new life, there are pros and cons for each of these. And the best person to guide you through this initial predicament is an experienced accountant.

Writing a detailed business plan is an essential task prior to starting your business, as this will articulate exactly what your business concept is, how you plan to achieve it, and indeed, whether or not your ideas are realistic and workable! A business plan will also define how much financing you will need to achieve both short-term and long-term objectives.

General Dwight D. Eisenhower once said: “In preparing for battle I have always found that plans are useless, but planning is indispensable.”

Raising finance can be yet another minefield for potential start-ups – and this is where your business plan will be crucial. Even if you initially approach family and friends for potential “love capital” before the inevitable High Street banks, second tier lenders or brokers, they will need to be convinced that your new business will succeed and that their money is safe.

And your business plan is not merely a one-off document to get you away from the starting blocks. As any good accountant will tell you, it is essential to constantly review and refine it as your business develops and your strategies mature.

Explore what free help and guidance is available locally. In most towns there are chambers of commerce, business clubs, business growth hubs and other networking organisations where you can benefit from the experience of other people who have already done what you are hoping to do! Even your local council will have economic development specialists who can point you in the right direction. Talk to anyone you can about your business and your future plans. You don’t have to take all the advice you receive, but the odd gem could prove to be a godsend!

 

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