Starting a new business is a life-changing decision and those early stages will decide what your business will become and ultimately how successful it will be. Of course, you will make changes along the way, but kicking off with a strong idea and plan of how to bring it to life, gives you the best chance of success.
Although it’s tempting to jump straight into planning, take a look at what businesses currently exist in that market, what your customers truly desire in a business like yours and how much demand there is out there for it. Once you have done a little bit of research and checked out the competition, you’ll start to see how it can fit in the market and what aspects you might want to focus on to stand out from the crowd.
Don’t know where to start? Click here to view some tips for getting started with your research.
It is important to then sit down and really define what you want this business to be. You’ll need to be able to explain to potential investors or lenders what this business is. It doesn’t need to be reems of information, but a short, concise description which describes your product or service, who your key customers are, the need for your business in the market and how it will be profitable.
Click here to see how we can help you get started with a business plan.
Forecasting, Budgets and Prices
Now it’s time to get into the nitty gritty of the numbers. You’ll need to estimate the starting up costs and running costs of your business and clarify where this money will be coming from. Part of working out your costs will be establishing the prices you need in order to make your business profitable, and checking this aligns with others in the market.
There are a huge variety of pricing strategies, but understanding what successful competitors are doing should help to inform your decision. For more information on setting the right price for your business, click here to see what Xero recommends.
Setting a Business Structure
As well as understanding the numbers, you need to understand the people involved. You need to ask yourself:
- Will you be a sole trader or do you require staff?
- Will this be a business partnership?
- Do you want the legal protection that comes with being a registered company?
You will need to figure these kinds of questions out before launch, to ensure you have any necessary paperwork in place. Click here to see Xero’s advice for setting your business structure.
Getting Started with Accounting
Of course, we would say this as accountants, but getting your accounts in order right from the beginning will give you the best chance of success. By setting them up right at the beginning, you can track your progress from day one and be rest assured, that when the time comes to sort out your taxes, you have everything you need all ready to go!
At Tim Taylor & Co., we are Silver Certified partners with the accounting software, Xero. This means that when you ask us to manage your accounts for you, you get full access to cloud-based bookkeeping and accounting. You can better understand your real-time cash flow and easily see financial overviews on the go. Click here to learn more about Xero.
Setting up a new business is challenging, exciting and life-changing! Making sure you get these early stages right will give you the best chance of success. Tim Taylor and Co. are based in Swansea and specialise in small business accountancy. We take the time to understand you, your goals and your situation to provide you with a solid business plan and up to date accounts, bookkeeping and taxation services.
If you’d like us to assist you in your business journey, click here to get in touch, or pop us a call on 01792 363444.