It is the ambition of many people to run their own business. Some may have been made redundant and find themselves with free time and financial resources.
Others make the decision to start up in business to be more independent, address political inequity, and the work/life balance, or to actually obtain the proper full financial reward for their efforts.
Whatever the reason, a number of dangers exist. Probably the greatest concern is the possibility of business failure.
The summary below cannot cater for every possibility and any decisions should always be supported by proper professional advice, however, in order to make your business a success there are a number of key factors which should be considered...
Skills
You will need managerial, financial, technical and marketing skills. If you do not have these skills personally, they can be found in a partner or employee, or acquired through training.
Market
Your product or service should have a proven or tested market, but must not conflict with the patent or rights of an existing business.
A business plan
The business plan is the key to success. If you need finance, no bank manager will consider lending money without a sensible plan.
Your plan should provide a thorough examination of the way in which the business will commence and develop. It should describe the business, product or service, market, mode of operation, capital requirements and projected financial results.
Books and records
All businesses need to keep records. They can be maintained by hand or may be computerised but should contain details of payments, receipts, credit purchases and sales, assets and liabilities. If you are considering purchasing computer software to maintain your records, obtain professional advice and get reviews and opinions from other users.
Accounts
The books and records are used to produce the accounts. If the records are well kept it will be easier to put together the accounts. Accounts must be prepared for HMRC and if a company is formed there are strict legal requirements as to their layout. The accounts and company tax return must be submitted electronically to HMRC in a specific iXBRL format.
A company and a LLP will need to make the accounts publicly available by filing them at Companies House within a strict time limit. Penalties do arise if the accounts are delayed.
There are more issues that should be considered when starting up a business, which you can find here:
How we can help
Argo Business Compliance understands the perils and pitfalls in business and can offer a sounding board, support, and guidance every step of the way through your journey.
We aim to help you and your business succeed.
If you'd like more advice, then why not reach out and speak to us directly at Argo BC?
Simply head to the Contact page by clicking here.