Embarking on a journey of entrepreneurship can be daunting; some struggle with aiming at their target market, others find it hard to create a strong brand. However’ many have become successful with Companies House data revealing that more than 340,500 businesses were registered in the UK between January and June 2021. Here are ‘7 tips for Start Up’, advising you on what to focus on and mistakes to avoid for it to become a success.
1. Create a business plan
You can use this plan to outline USP (unique selling point), brand name, target market etc. There are templates you can use online to help you structure a detailed and comprehensive business plan. This lets others learn more about your concept and for potential investors to take your start up seriously.
2. Keep it simple
Complicating your business will stress you out and take away from the quality of your service/product/brand. The key to making a start-up a success is making sure you understand your target market and what makes you stand out from the crowd.
3. Be passionate
It can be a hard road starting your own business. However resilience and belief in what you do, can be the difference between success and failure. Passion allows you to establish the core values behind your brand. It also gives you the motivation and discipline to deliver your mission, and meet like-minded people along the way.
4. Consider the costs
Financial planning is important to keep on track of your business expenses necessary to launch and operate. It is better to be over prepared than short on funds when bills occur. Where will you get your funding? Have you considered a business loan or investing your savings, have you considered the cost of business insurance etc.? This is why it is important to create the business plan and stick by it. Do you know your target market? How much will effective market research cost? While operating and selling a business needs to be signed up to be an HMRC sole trader. Being a HMRC sole trader means you run your own business and will need to do tax in self-assessments. Keep this in mind for finances.
5. Have a back-up plan
Having a separate business bank account simplifies accounting, makes you appear more professional, and offers protection in the event of a tax audit or lawsuit. Receipts in a business are crucial for many reasons. Having a business bank account allows you or any authority to see your transactions and separate them from your personal account. Use this business bank account to buy all the necessities in a business such as business insurance, marketing costs and utilities. This being it tells HMRC is so you can become an HMRC sole trader where you’ll need to start paying taxes through a self-assessment.
6. Remember, Start-Ups take time
Staring your own brand is a process, build in stages and try to earn a steady income with a regular day job. It is better to gradually transition from employee to entrepreneur then jumping right into the deep end. You will learn as you grow your business, and become more knowledgeable on what works and what does not.
7. Know the legal requirements
Before starting a small business get familiar with the laws, rules and regulations the government have set out. Consider talking to one of our accountants at CBA for advice on how to set up your company. A start-up such as a scaffolding may requires business insurance. This is too protect the employees if there are any accidents while in the job. All of this information should be considered and created in the business plan.
How we can help
It is important to remember that there is no perfect formula for success as a start ups, but it is a good idea to consider all the different ways to get started. Creating your own business can be challenging but immensely rewarding, sometimes it is worth taking the leap to see how far your idea can go! Here at Carrington Blake Accountancy we help assist you in all your business’ accounting needs. Contact us today for further information on the services we provide.