Striking out on your own and running your own business can be incredibly rewarding. You might have a fantastic idea and be looking forward to being your own boss.
Thankfully for new entrepreneurs there are plenty of organisations such as FSB that offer advice, support and different services that can help get a new idea off the ground.
There are however, a number of things you need to keep in mind as you set your business up.
Space to work
You need to decide on what services your business is going to offer and make sure you have enough room to provide them. This might be simple if you only need a small home office to work from, but if you need to use larger equipment and tools you might need to convert more space, such as transforming the garage into a workshop.
This can help you work out what you’ll add to your business as it grows, when you might need to switch from working at home to working in an office or other premises and help you to chart the success of your business as it expands.
Even if you’re working from home don’t neglect to cover your business by insuring it. This can help cover any losses or problems. You can insure your business against accidents and injury, tax investigation, products, fire, theft, etc. Look at what specific needs you think your business will have and then take steps to make sure it is protected.
You need to take care of your business’s finances. When you start out you might think your personal bank account will suffice but as your business grows you will need to consider a specialised business bank account.
These accounts provide access to other services and benefits designed to help businesses grow and process payments.
If you find your business growing at a faster rate than you expected this is definitely something you should aim to get in place as soon as possible.
As part of looking after your finances you need to ensure your business is taxed correctly. This should be a priority for your business, as fines from HMRC for incorrectly paying tax can be a serious headache for new businesses.
Getting your taxes right starts with proper organisation. Filing everything related to your business finances away properly, so you can find everything when you need to, will make filling in your business tax returns so much easier in the long run.
As your business grows it might be worth considering hiring an accountant to help with your taxes. This can help make the process a lot easier, especially as your business continues to grow and you have less time to devote to this.
Working from home is a big undertaking, but by getting organised it can be a great platform to start a business based on something you’re passionate about and can help you turn a hobby or passion into a successful career.