You have a business idea, what next?
So you’ve created your next business plan and you’re ready to go it alone. Well done! But alongside all of the practicalities (premises, insurances, stock, funding, etc.), there are other important things to consider, some before you even start. Here’s a list of a few things you should do;
- Cashflow, do you have it? do you need it? Where will it come from? Allow for headroom as things always cost more than you think.
- Consider how you trade, i.e. sole trader, partnership or company. All have different legal and tax implications.
- If not a company, then you must inform HMRC you have started trading by 5th October following the end of the tax year you started. There are penalties for forgetting.
- If a company, form the company and appoint directors and shareholders. This is a legal requirement.
- Make a note of the reference numbers you’ll be given from the relevant authorities.
- Open a separate bank account for the business. Keep business money separate.
- Decide if you need, or want to register for VAT.
- You may also need a payroll scheme setting up, even if it is just you.
- Decide how you will keep your accounting records. There are lots of options available, but which suits your needs best?
- Be aware of your accounting and tax obligations.
- Create a Government Gateway ID to view your taxes etc. online with HMRC.
As I say, these are all in addition to the business of running the actual business, so lots to think about.
There will plenty of other things that will be in your head at the time of setting up, most of them far more exciting than the things I’ve listed above, which we all have the tendency to give more time to, but the above is important too.