Just Starting....
You have a great idea. A fantastic product or a service that you know will be in demand. You've decided to go for it; you're going to take a chance and work for yourself. But what do you need to do to ensure that everything runs smoothly?
The first thing to consider is how you are going to trade? The options are sole trader, partnership or limited company. If self-employed (sole trade or partnership) all of your personal assets (including your home) are at risk. As a limited company should the business go wrong you can only lose the money you have put into the business plus anything you have personally guaranteed.
Recent budgets have favoured the tax treatment of limited companies and while the costs of running a limited company are more the tax savings can be considerable. A good accountant can guide you through this minefield in advance, enabling you to maximise your earnings potential from day one.
The next step is to consider how you will finance your business.
What will your start up costs be? How soon will you receive income? How much credit will you get from your suppliers? Most new businesses require financial help in the first year of trading and it is only by looking into the future, understanding how you want your business to evolve and estimating your costs and potential income that you will know if and how much financing you need.
Even if you are just seeking an overdraft facility the bank will request a business plan and financial forecasts for at least the first 12 months you are trading. By presenting this information in the best possible way and reflecting the potential of your business you are more likely to achieve success in financing your business proposition.
In order to help you prepare for this consultation with the bank's business
manager and give you the best chance of success we have developed four
services each of which are detailed overleaf.
