If you are thinking of starting up a new business, there are a lot of things which you should consider at these early stages.
As Licensed Insolvency Practitioners, we have a wealth of experience in dealing with business owners who face closing down their companies due to severe cashflow problems. They are many occasions when those owners wished they had started their businesses differently.
Key things you should consider at the early stages of your business
- Have you done some proper research?
A lot of owners start their business doing little or no research into their proposed new venture. It is not sensible to start just because you have the money available and need something to do. You need to make sure that you can make a success of your business.
We have dealt with businesses which realised there was not a market for their offering after only a few months of trading…and a lot of money! Better research would have shown them this before they launched their business and lost their money.
- Have you taken advice from a good Accountant?
Many business owners think they can’t afford to pay for advice from an Accountant at the early stages of their business. However, it is almost certainly going to be a good investment for you. A good Accountant can help you with a number of issues, including:
- whether to set up a Limited company or be a sole-trader
- whether to put your own money into the business or get a loan?
- how best to deal with your tax affairs, your creditors (i.e. the people you money to) and your cashflow, invoices and debt recovery processes
- Have you taken advice from a good Solicitor?
You should speak to a solicitor to ensure that any contracts you are entering into (e.g. with landlords and suppliers) look after your best interests.
All too often we see business owners who find out, too late, that contracts they are in are heavily weighted in favour of the other party.
The undeniable importance of these issues
While these things may not seem very important now, they really should be. Taking the right options can make all the difference between the success and failure of your business.
If trading doesn’t go as you intended, and you find your company has cashflow / debt problems, you will need advice from an Insolvency Practitioner. At this stage, the importance of all the above will become very clear and will often dictate the options that are available to you.
We have seen numerous cases where wrong decisions were taken at the start of a business and the business owners found themselves in a far more difficult position than they needed to be in – including having their homes being at risk of being repossessed.
For further details on the above, call us on 0161 907 4044.