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Start the New Year by Starting A New Business

Why the New Year is the Perfect Time for Starting A New Business

We set up 2 Sisters Accounting one January when the reality of going back to jobs that we hated and sitting endlessly at a desk in an office was just too bleak to contemplate. So instead we hatched a plan, reviewed our skills and set up by ourselves. It took about a year before we were able to actually get away from the 9-5 desk chains but now we would never look back – starting a new business changed our lives!

So if you have come back from the Christmas break and wishing you could do something else with your time here are some of the steps to start a business that need to be completed as you launch a new venture. 

Starting a new business

Key Steps to Start A New Business

Finding Your Business Idea

Obviously the first step in starting a new business is making sure you have a business idea that uses your skills and there is a market for the product or service so you can make some money. The last thing you want is to put a lot of time and energy into an idea to find out that no one requires your services or the price point on them is not enough to support yourself. Have a think about what you are currently doing and what training you have had. Do some market research, which can just be looking online at similar businesses. 

Choosing Your Business Structure

You will need to decide whether to trade as a sole trader or limited company. Due to changes in tax rates and increased reporting likely to be on the way, a Limited Company is less attractive and comes with additional responsibilities.  However for some people a limited company may be the best or only option, some companies will only work with limited companies for example. Usually it makes sense to start as a sole trader and see how it goes, then when you are really up and running you can look at going limited. 

Read More: Should I Be A Limited Company Or A Sole Trader

Naming Your Business

Whether you decide to be a sole trader or a limited company you will need to decide on a name for your business. It can be fun to try out different names and ask your friends and family what they think is the best name. Choose something catchy and not too complicated to help advertise yourself. 

Setting Up a Business Bank Account

You will need to set up a bank account for the business. If you are a limited company it is a legal requirement that the company has a bank account in its name. For Sole Traders it is strongly recommended that you run the business finances through a bank account separate from your personal account. You don’t want to be having to send all of your personal spending to your accountant at the end of the year or be digging through transactions trying to work out what was personal and business. 

If you’re struggling or would like some support with your business bank account set-up, just reach out, we’re happy to help.

Registering with HMRC and Understanding Tax Obligations

Once you have got going you will need to register with HMRC for completing self assessment tax returns. As the director of a limited company you are required to complete these every year even if you do not take money out of the business for a while. If you are a sole trader you may have expenses that can be used to reduce your tax liability. 

Head to HMRC here!

Getting Business Insurance and Data Protection in Place

Some kind of business insurance for new business is something everyone needs to consider, so make sure you have investigated what cover you need and get this in place before you start trading. 

Another thing most businesses need to do is register with the Information Commissioner’s Office (ICO). If you handle any client data, which includes names and addresses, you will need to register with the ICO. There is a small fee for this and it needs to be renewed every year. 

Once all the admin is completed then it is just up to you to get out there and get yourself some clients and get the money coming in. 

We are always happy to speak to new businesses about their tax obligations and how to go about managing their finances and bookkeeping if you need some help – just click here to get in contact!

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