When you make the decision to become self employed, there are certain things you need to do to make sure you are well prepared to take that next step. Elements like financial and business planning will help you go in the right direction.
What do you need ?
After deciding that being self employed is right for you, there are certain things that you need to look at to ensure your new business is viable. Firstly, you need to look at if you can get clients or customers. You need to guarantee yourself that you can get some and then be able to look at potential future clients.
The next question you need to ask yourself is do you have enough money to start your business? It’s important that you fix a budget by looking at your expenses so you know what you need and to have enough cashflow for your business to be sustainable. An another important question you must ask yourself is would you be able to cope if you had to go through periods with little income? At first, you may be struggling during certain periods so you need to be sure that your business can survive.
How to plan ?
Planning will definitely help to make sure that your business is going in the right direction and that you can stick to the plan. You need to think about your business structure. You would usually set up as a sole trader but there are also other structures that are possible depending on what you are looking for. Even though it isn’t always seen as a priority, you need to prepare and look at the tax structure and be compliant with your accountancy.
If you are looking to raise money, then you need to talk to people outside of your business. Usually, you would talk to banks or potential investors to convince them to invest in your project. This is why planning is very important because knowing in which direction you are going will help to get that investment. So you must have a blueprint of what you want to do, so you can set out your objectives, develop ideas and plan for the short and medium term.
If you need any help to set up your business, planning or maintaining cashflow, then please contact us.
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