NEW START UP BUSINESS KIT QUICK GUIDE CONSIDERATIONS

WHAT TO CONSIDER BEFORE YOU START

Should I leave my job just yet?

Have I enough monies to start and succeed?

Do I need a Loan and will I get it?

Is the start up a new risky business?

Ask your family for their views on starting business?

Get professional help from firms such as DUBLIN ACCOUNTANCY

Do I need a solicitor (e.g. to form a partnership agreement)

SELECT YOUR BUSINESS TYPE

Do I set up as a Sole Trader/Proprietorship. This is really the easiest form of business to set up. It involves just one individual owner. In basic terms you can register a business name with the Companies Office and register with revenue for taxes and away you go. Your liability is unlimited. Always best to get advice before setting up from firms such as DUBLIN ACCOUNTANCY.

You can also set up as a Partnership. This is for 2 or more owners and the partners are taxed individually. If you draw up a Partnership agreement it usually includes the percentage owned by each partner, rights, responsibilities and obligations of partners. Your liability is also unlimited as a partnership. The partnership has to file a partnership tax return and each partner must file an Income Tax return.

Thirdly you can set up a Limited Company. You will require a minimum of 1 director and 1 separate Secretary or 2 directors whereby one of the directors acts as Secretary. A limited liability company is a separate legal entity that exists separate to its owners. The shareholders of a limited company have limited liability and are protected under company law from the liabilities of the business if it fails. The company may register for taxes such as Corporation Tax, Vat or Employers PAYE and other taxes. Always best to get advice before registering for taxes from firms such as DUBLIN ACCOUNTANCY.

There are other forms of set up but they are usually more specialised such as Unlimited Companies, Co-operative Society, Trusts. These are less common to set up and are often specific to sectors.

BOOKKEEPING AND ACCOUNTING

Let’s face it most people don’t like keeping books and preparing their accounts. There are also companies law requirements if trading as a company and taxes to consider when trading day-to-day with operations. The necessity for a good organised accounting system for keeping books and records cannot by emphasised enough. Firms like DUBLIN ACCOUNTANCY can steer you in the right direction in keeping basic manual records or computerised records and develop a good accounting system for you.

DO I NEED AN ACCOUNTING SOFTWARE PACKAGE

Should I keep the basic records in manual format or should I purchase an Accounting Software package such as Quickbooks or Xero Accounts Software. DUBLIN ACCOUNTANCY are agents for Quickbooks and Xero Accounts Software. Whilst Software packages provide good systems it is important to note that they are only as good as the quality of inputting records. Remember garbage in garbage out. If you purchase and use an accounting package it is important to put in the time to inputting records and reconciling the bank and entering journals if necessary. It is often the case that your Accountant ends up entering your data on your behalf. The main benefit

CASH FLOW PLANNING

Adequate cash flow is the cornerstone of how a business operates successfully. Without it the company cannot meet its day-to-day needs. It is important not to just operate just in the current timeframe but also to forecast ahead to next Monday, 1 year or 3 years’ time. Any cash flow planning need to carefully forecast the sales you plan to generate. This should be based on realistic facts or best available information. You also need to plan the forecasted payments you plan to make and the stock you plan to purchase if stock is a requirement. You will also need to plan your cashflow timing for Trade Debtors and Trade Creditors and payment of taxes such as vat if it applies.

PREPARE A BUSINESS PLAN (Failing to plan is planning to fail)

One of the greatest mistakes small businesses sometimes make is not having a business plan from the outset. Remember fail to plan is planning to fail. It is important to develop a well-structured business plan. Your business plan should be realistic based on realistic assumptions if these are used. DUBLIN ACCOUNTANCY has experience in writing business plans to raise finance or for the development of your business.

DO I NEED TO RENT OR LEASE A PREMISES OR PURCHASE A PROPERTY

If you require a commercial property or storage unit, do you take out a short term or long-term lease on a commercial property or rent a serviced office in which case you need to budget for monthly rent payments. Do you need a bricks and mortar premises or will a virtual office suffice which is a very much cheaper option to run. Purchasing a commercial premises requires considerable outlay and this can also act as a drain on your capital or cash flow. Make sure when preparing your business plan to consider location, customer access, parking, public transport, accessibility, internet

connectivity, water services, planning permission, nearly competitors, footfall in the area, future expansion requirements, availability to attract staff to the area.

DO I NEED FINANCE OR A LOAN

Businesses at different times obtain capital for their business. The most obvious method of financing is by way of borrowing money and taking out a loan. This is called debt. Equity on the other hand relates to selling a stake of ownership in the business. Your business can raise finance from self-generated cash flow from your business, from owner’s savings, trade credit, bank loan, bank overdraft, leasing, credit cards hire purchase, government grants, venture capital, angel investors, debentures.

DO I REQUIRE INSURANCE

It is best to get professional advice on taking out Insurance such as Public Liability, Employers Liability, Key Man Insurance, Life Insurance, Business Interruption Insurance, Cyber Security Insurance etc.,