Starting a Business and getting help
Starting a new business is always an interesting time and experience tells us that getting things right at the beginning can save a lot of time and prevent issues later.
Viewing the new business as an assembly process is a good way to begin. There are a number of essential building blocks needed with no one part being more or less important than the other. However, all parts need to be in the correct place at the correct time thus ensuring that you have laid down a good foundation for the future.
It is beneficial to draft a short business plan, a few pages of A4, to communicate your objectives and how you will achieve them. As you progress, this can be updated and provide a cornerstone of the business as it goes forward.
There are a significant number of tasks and procedures to go through when starting a new business. These range from choosing a trading name, the type of company (sole trader, partnership, limited company), where you will trade from, which bank to use through to notifying the relevant authorities.
Understanding the options and making an informed choice for your business from the start has proven to significantly reduce costs, time and frustration later.
Here are some typical activities and benefits companies can realise from engaging with ibd’s business start-up advisors:
- Guidance and assistance will be given to the founders to ensure that they understand the advantages and disadvantages of the options in relation to establishing a trading business.
- Provide an external independent assessment of the businesses viability and that a market for their products or services does exist and that it exists at the volumes they expect.
- The adviser will ensure that the right legal documentation has been prepared and filed and identify any additional restrictions on the activities.
- Help will be given to the founders to ensure that there are no potential claims against the new business from former employees of the business owners and that there are no challenges to ownership of intellectual property associated with the business.
- Identify any potential legal or other restrictions on the business such as formal registration with trade or legislative bodies.
- Evaluate probable competitor actions when the business launches
- Identify any grants or other financial incentives the business can utilise.
- Start Up Loans is a government backed scheme, providing loans and mentoring to individuals in the UK with a viable business idea but no access to finance. Loans of up to £25,000 are available for people aged 18 or over, living in England and Scotland.
Find out more about Start Up Loans
A pre-requisite of any accredited ibd adviser is that they have a wide knowledge and experience of running and managing businesses. They are therefore ideally placed to offer skill, knowledge and experience to those that are starting a new venture.
The approach taken by ibd advisors is to undertake and deliver a variety of services including those shown below to ensure your company starts with the best possible foundation for profitable growth:
- Ensure the correct documents are filed at Companies House to establish the business in the correct legal manner
- Notify HMRC of the business starting, including VAT registration if appropriate
- Preparation and communication of a business plan
- Ensure that banking facilities are established.
- Ensure that the right access controls are in place for the account and any credit/debit cards have appropriate limits
- Establish company policy and procedures in relation to employment law, Health & Safety, etc. and ensure they are compliant
- Make sure internal reporting procedures are in place for the control of expenditure and that financial management reports are generated on a regular basis and used to monitor progress against the plan
- Appropriate levels of creditor/debtor controls are established and the cash flow status is understood
- Ensure that a three year Budget and Cashflow have been drafted. We have templates to aid with this
- Handle VAT registration if applicable. Due to the diligence checking procedure this can take six months to complete
- Make sure that any requirements for external funding are in place and ready to draw down
- Ensure that your product/service is ready for market and that the market is ready for it
- Review and provide an external independent assessment of any legal contracts, eg, property leases, you will be expected to sign. Experience tells us this has prevented many costly issues
- Set your communication strategies; from mobile and fixed line telephones, internet access, email addresses, etc.
- Initial marketing, how will you tell the world you’ve started trading, how will they find you? What image will they see when they do?
We have identified the most important issues you may be facing if you are Starting Your Business in the links below - but please do explore the full Expertise menu on the left for a more comprehensive overview of the business disciplines we routinely deal with.