Gain Greater Independence.
Last year 78 per cent of women said that they gained greater independence once they became an entrepreneur,
In the article below, written exclusively for Working Woman, you will find useful advice on running your own business..
STARTING IN BUSINESS by Peter Newsam of UHY Wingfield Slater
The idea of working for yourself holds a number of attractions; there is no boss to satisfy; working arrangements can be more flexible and you reap the benefit of your hard work rather than the organisation who employs you. The reality however is somewhat different; running a business has its problems, customers can be as demanding as any boss, self employment is rarely a 9 to 5 existence, and the financial rewards are often not as good as anticipated.
Running your own business can however be very successful but it is important to establish a plan before starting out. Having decided what business you intend to start you need to carry out some research as to how many potential customers you would have. You may have a fantastic product or a great service you want to sell but there is no point if there are not enough customers who would want to buy from you. So you need to carry out some basic research into the market for your product or service, contact Government Agencies such as Business Link who provide free advice to those considering starting in business. It is important to ensure that there are both initial and repeat customers for your business, otherwise it will have a short lifespan. The most important asset of any business is its customers and so the focus must be on continuously exceeding their expectations, so do not over promise and always keep customers informed if you are unable to meet deadlines.
All businesses need to have good financial controls and as part of your planning it is important to ensure that you charge the right amount for your product or service. The charge, whilst being based on your costs and what profit you wish to achieve, must reflect the value to your customer. What is it worth to them; this will depend on the benefit they receive and how much it would cost them to obtain the same product elsewhere. Market research into your competitors is a very important part of your planning.
All businesses need cash to survive, a profitable business can fail because it runs out of cash. Good cash control is vital to any business which means if credit is given, it is only given where appropriate credit checks on the customer have been carried out and overdue debts are followed up and further credit withdrawn from bad payers.If your business is successful and a turnover threshold of £68,000 (current limit) is reached then you must register for VAT and charge VAT on your goods and services unless you are providing only zero rated or exempt
supplies. Voluntary registration before reaching the turnover threshold can be advantageous.
Once starting a business you need to advise HM Revenue and Customs and you need to decide whether you are going to operate as a sole trader, in partnership with others or as a limited company. Each has its own advantages and disadvantages and tax and national insurance consequences. Most professional firms of accountants will offer an initial meeting free of charge to give basic advice and information on tax and other business start-up issues.
If you are looking to start in business then planning is essential, remember those that fail to plan are preparing a plan to fail!
Notes
UHY Wingfield Slater are a firm of Sheffield based Chartered Accountants offering accountancy and business development services to small and medium sized owner managed businesses. For further information please visit their website: http://www.uhy-wingfieldslater.com/
