Five things you should do as soon as you start up in business
Posted on November 28, 2009
Filed Under Biz Start-Up | Leave a Comment
It’s often hard to know what to do first when you start up in business but if you’re starting up as a sole trader in the UK there are a number of things that you should do immediately.
- Register as self employed with HMRC. You have 12 weeks from when you start to trade to do this, but why not just get it out of the way now? You can register online, by post or over the phone so you shouldn’t have any difficulties.
- Get insured. If you’re working as a sole trader you are personally liable for any third party claims against you. Could you afford to pay out in the event of this? Common insurances include public liability, professional indemnity, employers liability and car insurance although there a hundred other insurances you could get. If in doubt, find a local insurance broker to help you.
- Work out your pricing. There is a big temptation when you start up to keep your prices low to help win business. Be careful with this tactic as it could end up being a false economy. Don’t undersell yourself or you could end up stuck in a rut where you can’t increase your prices to a level that makes you money in the long term. You need to charge a price that is fair to you and your customer, you’re in business to make money otherwise you’d have set up a charity. If in doubt, research other similar businesses and see what they charge but whatever you do, make sure you understand your own costs.
- Understand your books. Many people don’t have a clue about the financial side of the business but whether you do your own accounts or get a bookkeeper or accountant to do them for you , you need to understand the basics. At the very least ensure you keep all your receipts and a copy of all your invoices.
- Get some business cards. To win work you need people to have heard of you. Get some business cards and give them to everyone you meet. For best practice on using business cards, see my earlier post on how to use business cards.
There are, of course, many other steps to make a successful business but if you get the basics right you a have a good base from which to grow.
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