Taking the leap into entrepreneurship is exciting, whether you’re launching your own business or joining forces with an experienced entrepreneur. However, there are several key factors to consider to ensure your business starts on the right track.
Essential Considerations for Your New Business
1. Choosing the Right Business Structure
Decide how you’ll operate—will you trade as a sole trader, partnership, private limited company (Ltd), or company limited by guarantee? Each option has different legal and tax implications.
2. Business Management & Operations
Will you handle everything yourself, or will you establish a management team with defined roles and responsibilities? Setting up a strong operational structure can improve efficiency and long-term success.
3. Hiring Employees
If you plan to employ staff, it’s essential to understand employment law, employee rights, and payroll obligations to ensure compliance with HMRC regulations.
4. Securing Business Premises
If your business requires physical premises, negotiating the right lease terms is crucial. A well-drafted lease agreement can protect you from unexpected costs and legal issues.
5. Business Insurance
Protect your business from unforeseen risks by securing appropriate insurance coverage, including property damage, customer litigation, employee disputes, and loss of income.
6. Financial Planning & Cost Management
Before launching, create detailed financial projections to estimate start-up costs, monthly expenses, and required initial capital. This will help determine your break-even point and ensure financial stability.
7. Measuring Business Performance
Setting Key Performance Indicators (KPIs) allows you to track your business’s progress. These could include revenue targets, customer satisfaction, and operational efficiency. A well-balanced mix of financial and non-financial KPIs is essential for success.
8. Seeking Professional Advice
Expert guidance can save you time and money. Whether you need a solicitor for lease agreements or an accountant for tax planning and HMRC filings, getting the right support is crucial for business growth.
9. Obtaining Necessary Licences
Certain businesses require licenses to operate legally, such as a restaurant selling alcohol or a street trader. These are typically issued by local councils or governing bodies within your industry.
10. Changing Business Use of Existing Premises
If you plan to change the use of a property (e.g., converting a retail store into a coffee shop), you may need landlord approval and planning permission from the local council.
11. Buying an Existing Business
If you’re purchasing a business, consider factors such as transaction structure, purchase price, goodwill, assets, stock, client base, and overall business strategy. A thorough evaluation ensures you’re making a sound investment.
Need Expert Advice? We’re Here to Help!
At Ahsan & Co., we provide expert Business advisory services to help entrepreneurs build successful businesses.
Let’s make your business journey a success!