If you are an old hand at setting up a new business most of the content of this article will be a timely reminder of the issues you need to cover in your project to-do list. For first timers, use this article as a guide to see you through what can prove to be an exhilarating and challenging adventure.
Planning and research
Your planning and research should at least cover the following issues:
- What does it take to run your own business?
- What skills will you need?
- What do you know about your competitors?
- How much capital will you need to raise?
- What resources will you need, plant, equipment, computers etc?
- Could you start on a part-time basis and delay leaving the day job?
- Can you run your business from home?
Also be aware that none of us operate in a vacuum. What special considerations do you need to look out for taking into account the present economic conditions?
Red tape
There is no doubt that at times you will just have to deal with it. Here are a few tips that may make the process less painful.
- Find out exactly what is required, what forms need to be filled in and when they need to be submitted.
- If you feel that a particular process is beyond your abilities find a professional advisor to help, the cost will generally be recovered by time that you are able to free up to work on your business.
- If you want to complete the online filing or form filling make sure you read the fine print…
Red tape seems to be a necessary evil in our highly organised society. If you do find yourself beating your head against a brick wall, save yourself the headache, get some help.
Tax planning
Whatever you do, don’t underestimate the UK tax system. Be very clear what your obligations are and the ways you can organise your business affairs to save tax. There is no point in planning for your tax liabilities after the event! The time to plan is before you act. This is a really important point. Tax specialists, us included, take no joy in advising tax payers that they could have saved themselves tax if only they had acted in a certain way at some time in the past. The tax system is riddled with deadlines that once passed, deny you tax saving opportunities.
