Starting up in business - Wefinda handy hints

All great businesses start with an idea.  Sometimes the idea is discarded or lies unnoticed on a shelf for many years; other times a visionary takes the idea, shakes it up and sets off to sell it to the world.  But what do you need to do when taking that giant leap into setting up a business? 

Create a business plan

No matter how good the idea and how keen you are to leap straight in, without a plan you will soon flounder.  Your business plan will be needed to arrange finance and for some trade references and should include the following:

• Your details, background, qualifications and abilities
• Details of the business including whether you will be a sole trader, partnership or limited company; what the business is going to produce or sell; what is the unique selling point which is going to make the business successful
• What finance is needed to start the business including any loans to acquire equipment
• How the cost of your goods breaks down and what the profits are likely to be.  This should include a full cash flow and profit & loss forecast
• Market research done.  This should include market research on competitors and on clients

Considerations when setting up your business

This isn’t just a case of coming up with a name and getting on with it.  You will need to consider:

• Registering with the authorities.  All self employed people have to register with HMRC as soon as they start up in business.  Limited companies have to be registered with Companies house and all businesses expecting turnover in excess of the VAT threshold will need to register for VAT.   You also need to consider whether you need to register with the Data Protection commissioner.
• Insurance.  You need to consider business insurance including public liability.  If you intend to employ staff by law you need employers’ liability insurance.  More than a few staff and you have to have staff contracts and terms and conditions
• Health & Safety etc.  You need to look at fire risks and health & safety policies.  These vary dependant on the type of business and staff numbers
• Bank account.  Talk to a range of banks to start with.  They will all have different needs and will give you lots of advice and handy hints.

Once you have got the basics out of the way you can get on with stationery, business cards, web site, marketing and all the other areas which will make your business start with a bang.  Don’t be put off by the amount of work you have to do.  The Wefinda guides will help you and there is plenty of other information available on line.  In particular look at http://www.hmrc.gov.uk/startingup/ for advice on tax and vat http://www.hse.gov.uk/ for advice on health and safety.