Starting up your own business can be a daunting task: once you come up with your initial business idea, you need to formulate a business plan – a process that usually involves finding the necessary funding to make your company a reality. However, it’s important not to be overwhelmed; after all, small to medium sized businesses make up over half of the UK’s workforce and occupy a crucial place in the workings of the British economy. Simply make sure that you get the best advice possible, and consult the right financial sources to gain the necessary capital you require.
Many banks and financial institutions will offer you comprehensive advice when it comes to starting a business, but it’s important to make sure they take your idea seriously first. Come up with an inclusive, watertight business plan and the chances of your bank giving you the money you need is sure to increase, as will the range of financial services offered to you. New businesses can find a range of financial products from banks, including current accounts, savings accounts and secured loans to buy business equipment.
What’s more, some banks and financial institutions will also offer a range of business start up packages, which will include advice on how to choose your premises, as well as help on marketing, advertising and promoting your new business. Some banks even assign new businesses with a business manager, and this is always preferable to being diverted to a call centre or general advice bureau.
Once you’ve secured your finances, it will probably be in your company’s best interests to hire an accountant. An accountant will ensure that your business – even if it consists solely of one person – will be tax efficient and that your finances will run as smoothly as possible. Before you hire an accountant or an accountancy firm, however, make sure you check that they’re registered with a professional accountancy body, such as the Chartered Institute of Certified Accountants.
Keeping a record of all your spending is also important for any new business. Keeping all your receipts and invoices in a ledger can help you keep a track of the money coming in and going out of your business account, as well as being able to notify you when money is owed to you.
Furthermore, you should always remember to put some of your business money away, for tax and National Insurance purposes. Consult your accountant about how much you should set aside, and always make sure to place it in a comprehensive deposit account in order to make more interest. Following these basic rules to managing your money when you begin a new business can be crucial in making or breaking your future – and it may just set you up on the road to prosperity.