Deciding to start your own business is an exciting beginning to a new chapter. Once the initial excitement dies down however, you may find yourself lost as to where to begin. We’ve created a list of the 8 most important things you will need to do before starting.
1) Decide on your legal structure and register your business.
There are many factors to think about when deciding what structure to trade under. This article provides some points to consider, however it is worth speaking to an accountant about which would be best for you.
2) Set up a business bank account.
Although this may seem like a simple one, many skip this thinking they can just use their personal account. However, keeping personal and business accounts separate will make dealing with your bookkeeping and year-end accounts far simpler.
3) Set up a business savings account.
Having a savings account where you can put a little aside each month is the best way to plan for tax and VAT bills. Ensuring you have some savings will remove the stress of paying these bills and will also help manage your cash flow.
4) Get all business insurances in place.
Depending on what your business does, there may be slightly different insurances required. Do some research and have them in place before you start trading.
5) Think about your target income needed to survive.
Particularly if your new business is your sole source of income, calculate how much you need to live on and how long you can survive before your business needs to be making enough to cover this figure.
6) What bookkeeping methods are you going to use?
It is important to consider what software you want to use and how you are going to record expenses such as mileage. Apps such as Mile IQ are useful tools which also link into certain software like Xero.
7) Do you need to be registered as an employer?
If you will be taking on employees or taking a salary yourself, then your business will need to be registered for PAYE.
8) Do you need to be registered for VAT?
You will only need to be registered for VAT once your income for the last 12 months reaches £85,000. However, it may be beneficial to volunteer for registration early. Again, speak to an accountant who will be able to advise you on the best course.
Starting your business doesn’t have to be intimidating! Click here to download this checklist and tick off each stage as you go. If you would like additional support and advice on your new business, then have a look at our Start-ups packages.