Are you looking into starting a small business?
It’s important not to rush into this. It doesn’t matter if you’re going to be self-employed as a sole-trader or you’re starting up an actual company. The facts are three-quarters of start-ups fail within the first three years and a third of those fall by the wayside in the first six months.
To give you the best chance of surviving the teething period here are 4 things you should consider before taking the plunge.
1. Not Everyone Can Run A Business
You see all these successful people running their businesses but you don’t hear about all the failures. Unfortunately, not everyone is cut out for running a business. You need the dedication and motivation to keep going, even when times are tough. You need the drive to work every single day and keep marketing your small business to make sure people know you exist.
2. Registering With The Taxman
HMRC want you to register your business, so they’ve made it easy online and there is even a helpline for the newly self-employed. Don’t worry about there being lots of paperwork to fill out. You just need to let HMRC know your business name and when your business formed. The hardest part is deciding whether you’re a sole-trader or a limited company.
3. There Are Costs In Running A Business
Even if your new business is going to be run from home, there will still be costs involved. You need to think about the running of the internet, phone bills and the cost of your fuel. It’s important to keep track of all your costs so that you don’t run aground. Cloud invoicing and accounting could be something worth thinking about to keep your costs contained and easy to track.
4. Long Hours And Weekends Are A Must … At First
You may want to start a business because of the ability to spend more time with your family and dog. Unfortunately, running a business or being self-employed usually means longer hours and weekend work, at least at first. Remember nobody knows you’re there, so you need to market your company and make sure you keep up with all the work. The good news is that as your business grows and gains a momentum of its own, you could take more time off to spend with your family and friends.
Just Be Ready
Think about everything you need to do when starting a small business. Consider NumberJuice to give you flexibility and make tracking finances easier. Also beware of the hours you’ll need to work. Fun if you’re committed to your big idea, a drudge if you’re not!
The more you prepare for the business, the more chance you have of success.