Taking Advice When Beginning In Business. A Small Word With The Professionals

Setting up in business can be a really challenging affair. Why would anyone try in these dark economic times? Maybe it’s because the day job has vanished , maybe you are a victim of the most recent round of cuts from the coalition government, or perhaps its simply because of the recession . You’ve tried the job market down the Jobcentre Plus and lately you can’t even get on the touch screen computers because of the sheer number of of applicants.

Possibly it is the right occasion to take the plunge and start up on your own. A Home Based Franchise or business may be the only way forward as the jobs market is wallowing in the doldrums. Benefits are being reduced , money is tight and this is the time when the Great British entrepreneurial spirit is likely to glow at its brightest. More fortunes are made in the recessions it is said, and the reasons are plain to see . The traditional businesses or Franchises have grown fat during the good times and may not be properly placed to compete when push comes to shove and the spare needs to be separated from the lean. Overpaid middle management, large premises, non essential bills can considerably reduce a corporations balance sheet if the orders aren’t coming in .

If you are in the lucky position of owning skills that are in demand to the labour market then it’s possible to begin on your own quite easily. Depending on your skillset you might not not even need tools or an office, you can simply go it alone doing pretty much as you did in the office job.

If you don’t have transferable skills then it may be a best to look on the Franchise For Sale market and accept that there will be initial costs. Franchises, possibly a Home Based Franchise or an opportunity you’ve seen on the Franchise For Sale market will charge you a starting fee as part of their sales and marketing but may not advise you of the additional costs you may need to incur , especially if you are handling the general public.

In both cases here the warnings are quite stark though. Once you decide to start up on your own or if you start up with a Franchise For Sale as your business you must inform the Inland Revenue within a fixed period. If your sales are in excess of £70,000 you are required to register for Value Added Tax . Optionally you may do this anyway, if you have to to get the VAT back from your suppliers for instance, but remember if you are selling to end users that cannot reclaim the VAT it’s good to stay out of the system for a while.

There is also the VOA – Valuations Office Agency to see if you will be charged Business Rates on the property you intend to operate from. The HSE is another agency that might take an interest in your Home Based Franchise or business venture and their inspections can result in extra bills and building improvements .

If you are working at home your mortgage lender may have an interest in what you are doing. Residential mortgages are not commercial mortgages and it’s worth considering this

You may also engage the services of an accountant, or at least a bookkeeper to make sure financial affairs are in order and this is obviously an additional cost. Accountants vary in cost so it pays to shop around, and if you are running as a Limited Company then Companies House require annual accounts and the company will have start-up and shut down costs.

Professional Indemnity insurance will be worth having if you work on high value things and Public Liability insurance will be an essential too as this can protect you from claims from people who injure themselves as part of your business, or if heaven forbid, you injure them!

All in all not as easy as it appears from the outside.