Up and Running... BUSINESS GUIDANCE
Before you do anything prepare to keep a record of the events leading to your start up. From day one, start a
record / diary of the events leading to your first day of trading and maintain it thereafter.
Keep every VAT receipt for the purchases that you make during the setting up process and continue to do so
thereafter. In the enthusiasm that generally goes with a business start up, things can move very quickly.
It is easy to forget important dates that will become relevant at a later stage.
Make sure any receipts that you receive have the supplier’s VAT registration number on them and are kept in
chronological order. This will make your accountant happy and save you time and money in the long run.
There are many purchases that you will make during the starting up process; chairs, stationary, etc.
individually they may seem minor, but it is good to keep a record of them as the expenses will add up.
Work out what you want from your business and ask yourself why you are starting it.
The prospect of increased wealth, freedom and job satisfaction have led many people to start in business for
themselves. Many have failed, however, because they did not clearly identify their personal and business goals.
Write down your specific goals and aspirations on paper. This will help you to think about them clearly.
Each method of start-up has it's pros and cons. It is essential for you to know your own aims, strengths and
weaknesses in order to decide which is the most suitable start-up method for you.
Becoming a franchisee, for example, may not be the best option if you value true independence. It may, however,
suit those who value the potential to reduce the scope for making mistakes in the early years.
Aquaint yourself with the various methods of attracting investment.
The main providers of finance for businesses are banks and financial institutions, but the government does
provide some assistance.
When presenting your ideas to potential investors / lenders, it is wise to create a business plan.
Using a Finance Broker: Many financial proposals are turned down because they are packaged and presented in the wrong way, and even
presented to the wrong lending organisation - leading people to think that their deal is non-fundable. Whether you are looking for Asset
Finance, a loan for a Leasehold Retail Business, Property development funding or finance to improve your existing business cash-flow, it
is important to approach the right lender. So remember, selecting the right people to help you raise funding for your venture can be as
important as choosing the right business.
Equity Capital: Raising equity capital involves selling a share of a business to a venture capital company or an informal investor.
Although venture capital companies are the main providers of equity finance, they are highly selective about the investments they make
and normally do not invest in amounts under £100,000; although there are exceptions, particularly for seed investments in potentially high
growth ventures.
Informal Investment -'Business Angels': The alternative to venture capital providers, as a source of smaller amounts of equity capital, is
informal investment. These investors are private individuals, usually with a business background. They are willing to make investments in
small business in return for an equity stake. They can also offer the benefits of their own management expertise.
Government Loans, Grants and Schemes: Certain British and European government bodies offer financial support based on various criteria;
your age, region / country, employment status etc. Please see our funding section for more info.
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