The Ultimate Guide To Setting Up A Company

Starting a business and working for yourself is a life goal for many people. Many are put off by the size of the task or are not really sure where to begin. Here is our handy step by step guide to setting up a company:

Ask Yourself Some Questions

Ask yourself why you want to start a business. Once you know the reasons behind your thirst to set up a new company, you can decide what kind of business you want to found. If you just want to dabble a little bit in the business world, maybe a part-time side project is more suited for you.

The questions that you should ask yourself are:

  • What subjects am I passionate about?
  • What are my knowledge and skills?
  • How much can I afford to invest?
  • Am I prepared to risk failing?
  • What type of lifestyle do I want?

What’s Your Big Idea?

If you have a superb, groundbreaking idea that can set you up in the world of business, then good for you. If you don’t, however, you should brainstorm one as soon as possible. To do this, first ask yourself what’s happening next in the business world and see if you can get ahead of the curve. Alternatively, think about what things in life annoy you and see if you can think up an innovative solution. Another method is to ascertain what skills you have in your current field and then think about applying them to another completely different area.

Research Your Market

It’s all well and good having this amazing new idea, but what happens if you realise a few months down the line that someone else has already done it? You should research your competitors within the market thoroughly and don’t neglect having conversations or interviews with people. Questionnaires aren’t everything. Don’t just survey people that you know, don’t just use online resources, and don’t solely rely on secondary research.

Company Registration And Other Legal Tasks

Starting a business and knowing you have to jump through all the necessary hoops like registry, tax, licences trademarks, copyrights and business structure can be intimidating. If you don’t have a legal background you may wish to enlist the services of a company such as Barron & Co to help get you on your feet with a minimum of fuss.

Build Your Business Plan

This is a detailed written description that details how you plan on developing your company from start to finished product. Your business plan should include:

Title page – This should include the name of your business.

Summary – This will detail what your plan includes, a company description, the problem your company is solving and how you can solve it. This should help sell your business to investors.

Business description – This will describe what kind of business you are starting and the sector it features in.

Market strategies – This will describe your target market and the best method of reaching this market. It should also list the relative strengths and weaknesses of your competitors and how to react to them.

Development and design – This should contain information about your product and service, and how to develop it along with a budget.

Operations and management – This should feature information regarding how your company will run on a daily basis.

Money Concerns – This will list the source of your funds, the amount and projections of how much will be needed as the business develops.

Finance For Setting Up Your Limited Company

Finding the required cash to get your business off the ground is often the most challenging part of starting a business – especially if you don’t have much to begin with!  Check out these sources of investment that you can explore:

  • Family and friends
  • A small-business grant
  • A crowdfunding campaign
  • Applications to local investment groups
  • Joining a startup incubator
  • Arranging an advance from a potential customer
  • Seeking a loan from a bank

Develop Your Product Or Service

Here is where the real work begins! If you want your ideas to come to life you will usually have to reach out to other people who can fill in the gaps of skills or tools that you don’t possess. You should list how to find and choose manufacturers, as well as information about potential pricing strategies. Here are some tips when developing your product or service:

  • Keep control of your product
  • Try and learn as much as possible during this process
  • Put into action checks and balances to minimise your risks
  • Hire workers who specialise in their role rather than a jack-of-all-trades
  • Don’t risk all your resources by relying on one contract
  • Manage costs closely

Start Building Your Team

A company is its staff so it is very important that you choose employees that will do the job that you expect them to. Finding a good fit for your company is crucial when hiring them so ensure that when you interview them, you state your goals for the business clearly. Make sure that you follow the normal hiring protocols and try to build a powerful company culture.

Find A Location

Finding somewhere to locate your business depends on the nature of your company. If it’s an office, then choosing somewhere with good transport links is highly valuable. If you are opening a store that relies on footfall you should consider the following things:

  • Foot traffic
  • Competition
  • Demographics
  • Accessibility
  • Building infrastructure
  • Cost of rent and utilities

Also, you should be wary about being tied into a long-lease when starting out as you have no idea how your company may develop in the future.

Barron & Co – Small Business Accounting Specialists

Barron & Co is an accounting services and financial advice business that is dedicated to reducing your tax liabilities. We understand that operating a business is a full-on job that is very stressful and that demands strict management of resources, as well as a firm grip on finances.

Since our founding decades ago, we are honoured to say that we have built up a stellar reputation amongst local individuals and businesses as a chartered accountant that is both reliable and competent. Our team of accountants and bookkeepers have worked with a variety of sole traders and small businesses; we understand the challenges that your finances will face in your first five years of operation.

Barron & Co is a proud Birmingham-based chartered accountant that is honoured to have served a vast range of varied clients, from large and small, and from a variety of different sectors. Our team of tax specialists will increase your company’s efficiency by offering a range of jargon-free financial tips as well as a wide range of accounting services. Barron & Co’s mission is to keep your company on track regardless of whether you employ five staff or 5,000.

If you are seeking alternative accounting services, our chartered tax advisors can aid you in registering a company, reducing your tax contributions, helping you self-assess your tax contributions and helping you start a new business. Barron & Co’s list of services include Self Assessment & CIS, Taxation & VAT Services, Limited Company Formations and Bookkeeping & Payroll Services. Our staff are all highly trained and experienced, and know the UK’s tax system inside and out. Barron & Co’s accountancy team are always ahead of the latest developments in law and have the required skills to manage any problem while taking the stress out of tax for you and your company.

The services that we offer can save your business thousands of pounds every year so why not contact us today? Call one of our friendly staff on 0121 426 4155 or alternatively email us via admin-ac@barronandco.co.uk.