“To be successful, you have to have your heart in your business, and your business in your heart.”
Thomas Watson Sr.
Chairman and CEO of IBM
Starting out
“Between 2007-2016, over 39,000 businesses failed within their first year”*
We recognise warning signs.
* Source : Talint International /Turner Little research 2017.
Businesses do not generally fail overnight. In many cases, there is invariably a gradual decline that business owners might miss, particularly when they’re unaware what symptoms might indicate to them that their business might be failing.
We will help identify some of the most common signs of a failing business, and if we find one or more of these signs are showing in your business, then you may be able to identify them simply as temporary issues, or they may be more significant issues. If you find you cannot explain them and it perplexes you, then we would recommend you speak to an adviser sooner rather than later. For guidance, you can download our Top 10 Warning Signs as a PDF, to see if you can see any of your problems in that list.
Here To Help
The right start-up financing gives your new business a solid financial base. It makes sure you have the funding to cover your short-term needs and to make the most of opportunities to grow.
Working out how to finance your start-up begins with knowing how much money you are going to need and where to find it. You also need to understand what the different types of finance can offer a start-up, so that you can get the right financial mix for your business.
Finding the right guidance and an adviser who understands all that you need to do, and all that your business plan may need you to do to achieve the goals of your business can be difficult.
Across all the pages in this section, we provide a series of guides to help you find what you should be looking for to so that when the time comes, we can help you…
CHOOSE THE RIGHT ADVISER FOR YOUR BUSINESS NEEDS.
FIRST THINGS FIRST
First first, you have to have an idea. A valid idea, that you think will interest people and that things they will pay for. No-one’s going to commit if you haven’t thought it all the way through, so make sure you spend a good amount of time working on your business’ direction and idea. How much demand will there be for the business you’re thinking of and is there any competition?
Your business needs to stand apart – have you identified a market gap? Approach customer needs in a new way or bring something better to the market. Ask yourself what can you do that others aren’t doing yet?
Once you decide it’s a suitable idea, it’s time to get started on building your business!
You are now self-employed
As soon as you start your own business, it’s important to register as self-employed. Let the HMRC know through a self-assessment so they can update your tax returns. You are automatically a sole trader, but there are a few different business structures you could apply.
Legally, a business should have a separate bank account to your personal account.
You need some structure
Business entities come in many shapes and sizes and it’s important to establish which you fall into before you start operating. Dependent on what you choose, anything from tax to liability can be affected, so it’s important to make sure you’ve considered all options. It’s often advised that you take a consultation with a small business solicitor to help guide you to the right choice for you.
These are:
Partnership
Limited liability partnership (LLP)
Limited company
Not-for-profit organisation
Sole trader
What’s your name?
The name of your company will have a huge reflection on your purpose and message, and in many cases is crucial to attract the consumers you are after. Make sure you search online, the Trade Marks Register and on the Companies House website before you decide on your name to ensure you’re not treading on any existing toes, and if it’s a limited company you’re starting, register it at Companies House.
Although it may be exciting to see your name on marketing materials, make sure you wait until you’re 100% certain the name is free to use. You don’t want to waste money before you’ve even started. Once confirmed, you can order all you like, and you can buy the appropriate website domains.
What about a model?
Before you start thinking of a plan, you need to build your business model, which acts a base for all planning. In this, you need to address the challenges you may come across: Who is our customer, what do they want, will it financially work out?
Here you’ll also start to look at sustainability and competition and set out how you’re going to make your business work in the right, practical way.
Some key things to remember to do are:
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Business resources. How will you keep it running, find customers and stay in profit?
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Find reliable suppliers, distributors, and marketing experts who work well with your business ethos and goals.
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Generate demand. Get people excited about what you have coming.
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Don’t forget about the future. Make sure you factor in time and space for innovation, adaption and development. There’s bound to be many new challenges and opportunities as you progress on your business journey.
Do you have a plan?
If you need an investment or a loan, a business plan is an essential step. You need to identify your business goals, the strategy and present a realistic action plan to show how it’ll all work out there in the business world. You should also include a marketing and sales plan, and how you’ve worked out financials – do you have a cash flow forecast?
Get yourself insured
Every business needs the right insurance, and if you have staff, you need to ensure you have taken out employers’ liability insurance. Commercial motor insurance is also required if you need to have access to vehicles. Make sure you talk to a financial adviser to establish the right cover for your business; other insurances to consider include:
- Public liability insurance
- Professional indemnity insurance
- Commercial property insurance
- Key person insurance
Are you compliant?
There are many legislations to consider for a variety of business activities. Some examples of this are:
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If you’re setting up a food company, you must have a food safety and hygiene legislation in place.
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If you handle customer data, you must conform to the Data Protection Act.
A small business solicitor can help you meet all the necessary compliance.
Do the Maths.
Or get someone in to do it.
Using a qualified accountant to look after your finances and tax payments will bring you peace of mind when you’re juggling hundreds of things at once. They can advise on whether you register for VAT and many other financial tips.
OTHER CONSIDERATIONS
Where are you based?
Are you going to work from home, or are you going to rent or buy some premises. If you do the latter, you’ll probably have to pay business rates and may include tenant responsibilities, as with a house.
Being based at home, although maybe more convenient and comfortable could mean that you’ll have to obtain special permissions and insurance. Renting out properties in a particular area could qualify you for special business rates, tax reliefs and other perks.
Branding
This is everything that represents your company. It’s more than a logo, it’s what people will think of when they see you – it needs to be reliable and present a quality service and professional business.
Start the chat
Customers are going to want to be able to contact you and it needs to be easy for them to find you. To do this, you’ll need to establish a communications strategy and work out how to handle things like Advertising, PR, social media, customer services and complaints. These will all probably require staff as you become busier.
Who’s going to work for you?
It’s a big deal hiring people. You want to make sure they’re right for the company and you can tolerate them day to day after all! It’s good to use freelancers and agency staff to begin with to make it clear what permanent roles you may need. When you become an employer, you must ensure you pay AT LEAST minimum wage, have insurance and enrol those eligible to a workplace pension scheme. It’s also important to provide statutory minimum paid holiday and sick leave, maternity/paternity leave and make sure you’re paying attention to your staff’s development.
Abacus Associates manages the personal wealth of many people across the UK and over £1 billion of investments, providing clients with financial advice and access to investment products and services.
We do not charge for initial consultation meetings. If you would like a face-to-face meeting, feel free to pop over to our office or we can always can come to you.
Give us a call today on 01432 343322 and ask to speak with one of our advisers,
or email [email protected]
Or complete the contact form below and your details will be passed onto an adviser who will contact you to make a free consultation appointment.
Contact Us
Call: 01432 343322
Email: [email protected]
Alternatively, use the 'Adviser Finder' page here >
Abacus Associates is a trading style of Saltus Partnership Limited which is authorised and regulated by the Financial Conduct Authority. FCA reference number: 554381
Registered office: Solent Business Park, 4500 Parkway, Whiteley, Fareham PO15 7AZ. Registered number: 07586042
Will writing and some aspects of tax planning are not regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on a mortgage.
Capital is at risk and you may get back less than you invest.
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