10 Things to Do When Starting a Small Business
Here are 10 things you should do when you start your new small business. There are many options within each section but check them off as you go along.
1: Register at HMRC
If you are starting to earn addtional income whether it be self employed or you have just started a new limited company you need to tell HMRC (HM Revenue and Customs) within 3 months of starting. If you don’t you’ll get a fine. It’s simple and you can do it online. Go to the HMRC website for more information here : http://www.hmrc.gov.uk/selfemployed/
2: Register your new company
If you are thinking of setting yourself up as a limited company then you need to set your company up correctly. There are many online company formation services available that already have “off the shelf” companies already set up. These can be transfered over to you within a few hours. If you have a specific name you want to call your company and no one else has registered it you can also do this but it takes a while longer. Set your company up online today at company formations.
3: Get a domain name
Whether you are thinking about having a website now, in the future or can’t even think why you want one, you should register your domain right now. Domains are in high demand and it is likely your chosen domain is already taken. But if you have an obscure company name or want the .co.uk domain it may be available. Do this as quickly as you can. With your domain also comes email so you can send and receive emails from your company address rather than the free services like hotmail, yahoo and google. This gives you the professionalism you need. The cheapest domain registering service in the UK is 123-reg now owned by the mighty PIPEX organisation. Register your UK domain online here.
4: Develop a business plan
All research suggests that companies who develop their own business plan generate far more profits and revenues than those without. Additionally, companies stay in business far longer. A plan will show you what you need to attain your goals and generally helps you put tactics in place to get to your final aims. There are many online business plan companies but the one we recommend because it comes with full support (the only online company that provides this) is Teneric Business Plans Ltd.
5: Get your financing sorted out
Most people go straight to their bank which is fine if you have a good relationship, do not need to much money and have your business plan to go. There are other methods to get financing from friends and family, self financing, re-mortgaging and your own cash. Explore all the options open to you. The most expensive methods are credit cards and overdrafts so before you go down this route check everything otu.
6: Get on top of your cashflow
Many a profitable company goes bust because they don’t have the cash to pay their suppliers and then they become insolvent. When developing your business plan ensure your cashflow is top of your priority list - getting your sales in fast (and there are options like invoice financing to help you here) and getting good terms with your suppliers.
7: Get an accountant
You’ll need an accountant sooner or later to help you through all the paper minefield that small business owners endure. Get recommendations from others or check the business forums. There are some good accountants that visit the business forums on a regular basis that provide advice so see which one you like. Get quotes from several beforehand and see how close they are to your business (as you’ll probably need to see them face to face at some point). An accountant should be able to save you money but also complete all the necessary forms that you need to complete each year.
With your accountant you should also start to keep financial records. To do this efficiently chose a software package that’s easy to use but also that your accountant uses so they can easily download your information and complete your accounts for you. Investigate Sage Accounting, Quickbooks and Microsoft Money.
8: Get marketing - get sales
So now you have your business idea and set up your company you need to start to get sales. There are many methods and here are some to explore:
- Telemarketing - effectively cold calling, but there are some excellent agencies specialising in your sector
- Online - using google adwords for example (you’ll need a website for this)
- Leafleting - printing your message and delivering leaftets to your target audience
- Radio - you can get excellent results from a radio campaign
- Forum particpation - go to the nearest business forums and see who’s there
- Yellow pages - generally useful for trades and restaurants
- Newspapers - use advertising as well as PR/ competitions
- Signage - if you have a van or car get your message on it
9: Pay yourself limited funds
In the first year of business you want your business to survive. If you believe that by paying yourself a huge salary this will happen then think again. You want to pay yourself the least amount possible and keep investing in your business to develop a solid foundation before taking money out. Put as much money back from your profits to provide additional products and services to upsell to your existing customers as well as for future development. If after the first 12 months you are still in business and profits are still growing then you can think about paying yourself a decent salary.
10: Have fun
In the initial phases it’s going to be hard work. Very hard work, long hours and stress and you need to prepare yourself for that. But at the end of the day, you need to be able to enjoy doing what you are doing. So ensure you take time out and that you don’t work 24 hours a day 7 days a week. See if friends and family can help take some of the strain or outsource some of the mundane work you are doing !
