90% Of Business Start Ups Fail – Is Your Good Idea Set Up To Succeed?
Starting a new business is the dream of many people; you might be one of them. Perhaps you have an idea or an invention, you might have seen a gap in the market or you just don’t want to work for a “Boss” any longer. All of these are good reasons to start up a small business yet around 90% of all businesses fail. Our aim is to help you with sound and easy to understand finance and accounting advice to be one of the ten percent who succeed with their start up business?
How do you start a small business?
This is a key question but one that many people don’t think about. They just jump right in and then their problems begin before they have even started.
Here are some crucial questions to ask yourself before setting up a new business venture:
Do I have a business plan?
This sounds very boring but it is a vital document for your success. The business plan and strategy should show the profit and loss forecasts and most importantly, a cash-flow forecast. We have business plan examples and a business and strategic planning service for start-up small businesses.
What business structure or type will you use?
A sole trader, partnership, a limited company? Each person’s situation is different so the type of start up company you choose must be right for your circumstances.
Completing all of the legal documents and filing with Companies House, the IRD and all of the other regulatory bodies can be a daunting set of tasks that put off a number of entrepreneurs who just want to get on with their business idea. There is a lot of paperwork to complete but it must be done correctly or you leave yourself open to all sorts of problems, fines and grief if it’s not done correctly. Let us take that headache for you.
Do you have enough capital in your new business?
Running out of working capital is one the biggest causes of failure in new business start ups. You must have a forecast of your cash flow to help you sleep at night but don’t worry – we can help you with that. We can also advise you with business start up funding or loans for your new business. We can also provide advice on grants for small business start ups.
Do you have reporting systems in place?
Financial reports can be a huge block for many small business owners especially in the early start up days. Unfortunately, the myth about “shoebox” accounts is true. Many business owners have no idea how their business is progressing or how much profit or loss they make. But having the right financial reports set up for you can save you time, monitor your progress and make it easy for you to file your taxes.
An easy finance, accounting and administration system is not a cost - it can save you money. It can show you issues so you can take corrective action before it becomes a big issue. Plus you must also have a set of Annual Accounts to supply to Companies House plus the new business tax returns to avoid penalties and fines.
To put your small business start up on a healthy financial footing, you should talk to a tax accountant before you commit yourself to any new commercial venture. Call 523 3800 for a free consultation.
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