Is this your first time or have you done it before?
A start up can happen at any age. You might be earning some useful cash while continuing your education. Maybe you have always been an unhappy employee and dream of the day you could start your own business. Perhaps you have found an idea and a gap in the market and want to exploit it yourself. It could be that you have been made redundant and you have no choice. It could be any one or a combination of any of these. But here you are, at a critical moment in your journey.
When it comes to considering start-ups, you almost need to know everything about the tax system and have an encyclopaedic understanding of human nature. These are both huge topics. Most people just do it based upon limited knowledge, or can we say blissful ignorance.
Some will succeed but others will fall by the wayside, wondering why their plan did not work. The way that most first time start-ups work is that they get started and then hope to stay afloat long enough to learn everything that they needed to know at the outset. There is a better way. Use our experience.
Even if you have done it before, and have learnt a lot along the way, you will not know everything and it could be that you missed something in your previous business that could have helped you along the way. On the other hand, perhaps you could teach us a thing or two. You see, every day is a school day. Every day teaches us something new. That applied to all of us.
Let’s consider some of the factors that you need to consider when staring out on this journey of discovery.
Consider the 5 business essentials
Product or service – you need a product or service for which there is an adequate demand and people are willing to put their hands in their pockets and give you cash.
Marketing – how will you tell your potential target customers what you have to sell.
Sales – This is where you seal the deal and make the sale
Fulfilment, service delivery – If it is a product, how is it produced and delivered. If it is a service, how will you deliver that service
Financials/Profit – If, at the end of the day you cannot sell your product or service and make a sufficient profit to sustain the business and you, you do not have a business.
Who, What, When, How and Why
Who is going to be in this business and are they sharing in the rewards of are they just employees?
What value is your business going to bring to the market?
When will you start to procure, manufacture, deliver, collect payments?
How will your business operate? If you are selling goods, will you procure them or manufacture yourself? Will you need equipment, training, finance? If you are providing a service, who will deliver it? How will you ensure that the right service is delivered at the right standard? How will you monitor quality control?
Why does this business exist? The simple answer is to say that it exists to earn money, but it is much more than that. Here is a quote for you to consider:
Planning your start up
The best time to talk to an accountant is when you first think about starting or buying your own business. The next best time is now. A little bit of time and money invested in timely advice could save you thousands of pounds and make the difference between success and failure, particularly if start-up funds are limited.