10 Things To Know When Setting Up A New Business

This is a guest post.

Setting up your own business, earning your own income and creating a new life for yourself all sounds great, doesn’t it? But in these tough economic times, it isn’t the easiest thing to do; so it’s important to be serious and have a plan. The first step is to educate yourself on what is required, before you can even get started.

1. Have a plan

Writing a business plan may sound like a needless task when no one will see it but you.  However, just doing this will help you map out where you intend to go, with key milestones, supported by information on how you’ll achieve this. This will help you calculate all your costs, create an annual budget and give you a stable base on which to build your new business.

At this stage you need to think about the business savings account you’re going to open for those all important funds. Choosing to set up a business account allows you to choose from a variety of fixed rate and flexible access business savings accounts to match your personal requirements.

2. Small business insurance is a must

You should never go into business without first making sure you’re properly insured. Small business insurance is suitable for all types of mini and micro businesses, whether it’s a home business, sole trader or partnership. You must become well versed in what insurance you need and get it in place before you start.

3. Inform the Inland Revenue

For tax purposes you must inform the Inland Revenue within three months of forming your own business.

4. Remember the Data Protection Act

If you intend to hold data about customers or prospects, you must register with the Information Commissioner in order to not fall foul of the Data Protection Act. This is easy to do and only costs £35.

5. How you’ll structure your business

There are various ways to structure your business – sole trader, partnership, limited liability partnership (LLP), limited company, PLC.  Sole trader is the most common for a small business, but you must decide which is most appropriate for you.

6. National Insurance Contributions

You must check how much you’ll be required to pay for National Insurance contributions.

7. How you’ll market it

Many great business ideas never see the light of day due to poor marketing. You must decide which kind of marketing you’ll need – a web presence, direct mail, employing direct sales people. This should form a vital piece of your business plan.

8. Be aware of any regulations

Many small businesses involve selling online. This is termed ‘distance selling’ and is covered by the Distance Selling Regulations. It is essential you are familiar with this, if you choose to trade online.

9. Get your terms and conditions in place

If you are providing a service or goods to your customers it’s very important to have terms and conditions of sale in place – acting as the contract between you and the customer.

10. Have a contingency fund in place

Cash flow is integral to any new business, so you should never spend all the money you make. Always try and keep a contingency fund in place, set up a business account as you should always expect the unexpected; like an opportunity for cheap advertising, or for quarterly tax returns or needing to replace an important piece of equipment.

Copyright 2017 Original content authorized only to appear on Money Beagle. Please subscribe via RSS, follow me on Twitter, Facebook, or receive e-mail updates. Thank you for reading.

A Little Technology Provides Big Help for Your Business

Most people would agree we live in the age of technology, and most businesses can see major changes by incorporating a little of that technology into their business strategy. You can increase your profits by embracing the advantages offered by today’s technology whether it is in presentation, communication or accepting new methods of payment.

Communication

Technology can play a big role in the way you communicate with your clients, potential clients, contractors, vendors, manufacturing source and employees. There are many devices from laptops, tablets and smart phones that facilitate communication. There are also many features included with these tools that can allow you to organize and update all your contact information for better and smarter communication.

Presentation

Whether you have an e-commerce store or not, a website devoted to your business can be a great technological tool to build and expand your customer base while letting the world know all you have to offer. Advertising with TV ads or in newspapers will only reach a select and limited demographic area. However, a website has the potential of reaching millions of people. There are now over 400 million worldwide users that access social media sites on a regular basis. Having a website and marketing it strategically on social media sites is one of the best ways to use current technology to your advantage.

New Payment Options

With the recent boon in m-commerce, or the use of mobile money, businesses would do well to take note and start accepting digital transactions as it is expected to reach into an over trillion dollar industry by 2020. Accepting mobile money is as easy as having the right mobile device, an online merchant account, signing up with one of the mobile credit card processing services and downloading the appropriate application software. This allows you to accept mobile money no matter where you go and can increase your profits. This is a prime example of making technology work for you.

Technology Keeps You Relevant and Competitive

Having and using the latest technology sends the message that your business is doing well and is relevant. In today’s competitive business market, any edge you can over your competitor will work to your advantage. If you have a website and your competitor does not, you are much more likely to have a better percentage of new customers walking through your door. If you accept mobile money and your competitor does not, you are going to pick up those customers while your competitor cannot. If you are able to video conference with potential clients, contractors and employees and your competitor does not, you have given yourself a phenomenal edge that will show up on your bottom line.

Most technology does require a small initial investment, but there is a great chance you will see a large return on your investment. The best way to decide which technology will be of the greatest advantage is to sit down and analyze your specific business, your market, your clientele and your mode of operation. Find the technology that will help your business in a big way.

Copyright 2017 Original content authorized only to appear on Money Beagle. Please subscribe via RSS, follow me on Twitter, Facebook, or receive e-mail updates. Thank you for reading.