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Many people are deciding that setting up their own business is the way to go for them. Whether it be because they are unable to find a job within a company due to the recent economic downturn, because they have a great, innovative idea that they think will make them money, or purely because they would just rather work for themselves than have ‘a boss’, there are a number of reasons why more and more start-ups are appearing across the country.
Put by some initial cash
Jumping into a business head-first without any savings put by, or the promise of any financial backers can make it difficult. Although there has been a bit of an upturn in the economy over recent months, banks are still fairly wary of lending large sums of money unless you have a solid plan or perhaps even some deals already in place, as well as some cash already in the bank to fall back on during your start-up period. Many people are now deciding to just use credit cards, or to borrow from family members, but with both you need to make sure you are going to be able to pay them back as to not get into any difficult situations.
You don’t need to invest in business equipment
At the same time, not all businesses need to make huge initial outlays to get going. In fact, many businesses (especially if yours is only going to be a ‘one-man band’) do not need anything more than a decent laptop, a reliable internet connection and a mobile telephone. Copywriters, freelance web designers or IT consultants can all work using the standard equipment they would use at home.
Think about where you will be based
However, you also need to think about the image you want to portray to your customers and whether that is something which is going to be important to your business and its continued growth. After a certain amount of time of working from home, many people decide that it is time to rent out a space in one of the serviced offices London has to offer. Doing so gives them everything they need, such as the desk, telephone and internet, connection and allows customers to come and meet with them in a professional location. The benefit to you is that this is a highly affordable option in comparison to buying or even renting out an empty space which isn’t ready to accommodate a growing business.
Consider tax at the earliest opportunity
It’s very important that you register your business with HMRC as soon as possible (legally within 3 months or starting your work). Your registration will depend on what type of business you are operating. If just working alone then it may just be worth declaring yourself as self-employed; there are also options for partnership businesses, as well as setting up a Ltd company. All have different requirements when it comes to the amount of tax that you need to pay and it is important to become familiar with these. If you are unsure it is worth seeking the advice of an accountant – they will also be able to tell you which paperwork you will need to keep hold of over time in order to complete your tax returns efficiently. Failure to do so could result in big fines – something which you won’t want at the early stage of your business.