New year, new business. At Modus nothing is more exciting than being involved at the start of a new business. From working with hundreds of business owners, we know that the majority of people take the plunge to give themselves more time, money and less stress. As entrepreneurs ourselves we understand the challenges you are facing, and our aim is simply to support you in achieving your goals.
Here are some of our top tips on how to tackle a start-up in the dawn of 2021.
Where To Start With A New Business?
Along with considering your initial strategy and aims, start by deciding on your legal business structure.
Whether you chose to become a sole trader, a limited company, or you opt for another structure, your decision will influence how much tax you pay and how much paperwork you will need to do. Avoid making things difficult for yourself from the start.
You can find an example of the main business structures available and what they mean for your business here. If however you’re interested in researching this further, Chapter 14 in The Emyth by Michael Gerber is also especially useful on advising how to organise your business.
Modus Accountants also offer a free one-to-one sessions where we can offer advice on your business structure. Claim yours here.
Support & Funding
Current government schemes like the Self-Employment Income Support Scheme (SEISS) are based on previously submitted tax returns so unfortunately cannot be claimed by newer start-ups. There are however plenty of other support systems in place for entrepreneurs if you know where to look.
You can research the funding options available to you on the UK Start-ups Website by narrowing your search based on:
- Your industry
- Your location
- Any specific funding requirements you may have
If you have already started your business, and are looking for extra support, you may also find some of the COVID-19 Lockdown support is available to you. You can find out more here.
Thorough market research is crucial to understanding opportunities open to your business. It will also help identify any challenges and shaping your long-term business aims.
Some key elements of market research are:
- Your potential customer base
- Potential products or services
- Competition and market position
- Market and business challenges (a basic PESTEL Analysis is a good place to start)
- Industry trends and developments
What To Do With Brexit?
Incorporating the new Brexit regulations into your business is also paramount to ensuring you avoid costly mistakes. Refer to the gov.uk website for detailed information about how the new regulations could affect your business.
In general, careful financial decisions like not overspending, separating your personal and business expenses and protecting your cashflow will all help you establish a thriving business.