We take a look at what to do, and what to avoid, when starting-up a new business.
Around 400,000 UK businesses start up every year. It is estimated that around one third of these cease trading within the first three years. But new business owners do not set out to fail. So what steps can you take to ensure you don’t fall into the failure category?
Starting up a new business can seem like a minefield. Should you trade as a Ltd or as a branch? Start-up costs also require funding, which has to be found and secured. Then there are administrative responsibilities such as bookkeeping and invoice processing. When you register your new business with HM Revenue & Customs you must also decide if you need to register for VAT and PAYE (Pay As You Earn). The VAT registration threshold is currently £79,000 and there are a range of schemes which may be appropriate for your new business. As for PAYE, you may have heard about the new system that requires employers to report payments to staff in real time. This has added another layer of responsibility for business owners.
But, when you start up, what you really want to do is take your overseas expertise into the marketplace, make a profit and develop a client base in the UK and expand.
Some may have thought it was that easy and maybe many of them are the ones that do not make it past the three year mile post. Here are some important tips to help your start-up get off, and stay off, the ground.