Starting or started a new business?

So, you have decided to take the plunge and start your very own business or entering a business with an experienced entrepreneur. There are few things you need to consider when starting your business.

Below are some of those considerations:

• Legal set up of the business: will you trade as a sole trader, as a partnership, through a private limited company (Limited / Ltd), company limited by guarantee  or any other set up.

• Management structure of the business: will you have a management team in structure each with specific defined roles and responsibilities or will you be the sole person responsible for all the operations and decision making.

• Employing staff: will you need to recruit employees and are you aware of employment law and employee rights.

• Business premises lease: for businesses those require physical premises lease is a very important contract. Negotiating a good lease terms is very crucial and careful consideration for the terms will help avoid nasty surprises in the future.

• Business insurance to help mitigate the business from different types of risks including damage to property, any customer/client litigation, employee dispute litigation, loss of income etc..

• Business start up costs and ongoing costs: prior to starting up, it is crucial that financial projections are drawn up all costs are accounted for. This will determine how much initial capital that will be needed as well as monthly costs of the business. It will help with establishing break even point. 

• Measuring business performance: key performance indicators (KPI) should be identified and through the course of trading performance of these should be measured against targets to assess performance. These could be financial such as revenue targets or non-financial such as client satisfaction levels. Good mix of KPI targets are crucial for any business.

• Seeking professional help: where appropriate, it is important to seek help. An example would be a solicitor to help with lease transfer or seeking an accountant to help with HMRC filing requirements, Companies House filing requirements, tax savings and general business advice. 

• Obtaining relevant licences: some businesses will require licences to trade such as a restaurant wanting to sell alcohol or a street trader. Licences are generally acquired from local council or from associated governing body for that trade. Without required licences it would not be legal for the business to trade.

• Using existing premises for any other types of trade: this is where approval of landlord will be required and also possibly planning permission would also be required. For planning permission, local council planning department will be able to assist. An example would be converting a premises that was previously used as a convenience store to a coffee shop. 

• If buying an existing business: there are various considerations such as transaction type, consideration paid (price for the business), associated goodwill, fixtures and fittings, stock, business client make up, fees charged by the business. business strategy.

 For more information or assistance please get in touch with us.