It is the ambition of many people to run their own business. Others may find themselves with free time and financial resources. Further some may make the decision to start up in business to be more independent and obtain the full financial reward for their efforts.

Whatever the reason, a number of dangers exist. Probably the greatest concern is the possibility of business failure.

We believe for every possibility and any decisions should be supported by professional advice. We have incorporated and assisted more than a 100 startup businesses and have performed well in various areas.

How we can help

Whilst some generalisation can be made about starting up a business, it is always necessary to tailor the strategy to fit your situation. Any plan must take account of your circumstances and aspirations. Whilst business success can never be guaranteed, professional advice can help to avoid some of the problems which befall new businesses. We would welcome the opportunity to assist you in formulating a strategy suitable for your own requirements. We can also provide key services such as bookkeeping, management accounts, VAT return and payroll preparation at an early stage.

In order to make your business a success there are a number of key factors which should be considered:

Initial considerations

• Commitment - starting a business is demanding. Determination and enthusiasm are essential
• Skills - you will need managerial, financial, technical and marketing skills. If you do not have these skills personally, they can be found in a partner or employee, or acquired through training
• Your product or service should have a proven or tested market, but must not conflict with the patent or rights of an existing business

The business plan

The business plan is the key to success. If you need finance, no bank manager will lend money without a sensible plan.

Your plan should provide a thorough examination of the way in which the business will commence and develop. It should describe the business, product or service, market, mode

Business structure

There are three common types of business structure:

• Sole trader - This is the simplest form of business since it can be established without legal formality. However, the business of a sole trader is not distinguished from the proprietor’s personal affairs.
• Partnership - A partnership is similar in nature to a sole trader but because more people are involved it is advisable to draw up a written agreement and for all partners to be aware of the terms of the partnership. Again the business and personal affairs of the partners are not legally separate. A further possibility is to use what is known as a Limited Liability Partnership (LLP).
• Company - The business affairs are separate from the personal affairs of the owners, but there are legal regulations to comply with. The appropriate structure will depend on a number of factors, including consideration of taxation implications, the legal entity, ownership and liability.

Books and records

All businesses need to keep records. They can be maintained by hand or may be computerised but should contain details of payments, receipts, credit purchases and sales, assets and liabilities. If you are considering purchasing computer software to maintain your records, obtain professional advice.

Accounts

The books and records are used to produce the accounts. If the records are well kept it will be easier to put together the accounts. Accounts must be prepared for Filing and if a company is formed there are strict legal requirements as to their layout. The accounts and company tax return must be submitted electronically to Income Tax Authorities in a specific format. however there is software available to cater for electronic filing if preferred.

A Company and an LLP may need to have an audit and will need to make the accounts publicly available by filing them with the Ministry of Corporate Affairs within a specific time limit.