The day you decide to take the plunge and work for yourself will be one of the most life-changing choices you ever make, whether starting a company large or small or as a freelance; from the very first moment of being self-employed, you and you alone will stand or fall by your decisions and actions. You will be responsible for steering your business through all its ups and downs, good times and bad times with no guarantee that everything will turn out right in the end.
When you are in charge the buck stops at one place. There is no management line to help with complications; no colleagues to share the blame for mistakes, there is only you to deal with any problems that crop up, only you to decide how those problems are dealt with, and only you to face the consequences of your decisions whether they turn out to be right or wrong. Whilst there are many pitfalls and worries in running your own business, there are by contrast also times of extreme satisfaction, personal achievements, financial rewards and periods when everything runs to perfection ? it's not all doom and gloom but it is most certainly very hard work.
There are important issues to be considered by anyone thinking of becoming self-employed and all of them should be given very serious thought. Assuming at this point that you know your chosen field of expertise enough to go it alone, sufficient time to plan the setting up of your business is vital. This part of the process may be a tedious and drawn-out exercise but it is necessary to try and ensure the smoothest possible start to your venture.
The most immediate priority is of course money. When you start working for yourself it is recommended that you have enough funds to support you (and your family if applicable) for at least three months, by which time you should hopefully be generating an income from your business. However, saving this amount of money would not be an easy task and so a great deal of forward planning and patience is an absolute must if you want to make it a viable alternative to a bank loan, especially if you have already borrowed money to start the business.
It is worth bearing in mind that a vast number of companies have a 'cheque run' on a designated day of every month to pay their suppliers. If you miss this day because you did not send your invoice soon enough you will not get paid until the next cheque run. Experience has taught me that companies will rarely if ever deviate from this rule. It is in your best interests to send invoices as soon as possible; too late and you may have to get by for a month with little or no income.
A must-have for any business is a good accountant. How you choose one is usually a matter of pot luck or a referral from someone you know, the latter usually being the best way to find one. Whilst accountants are not exactly inexpensive, they will save you money in the long term. It would be a huge mistake to think that you could do their job better or cheaper than they could ? unless of course you are an accountant yourself.
Many a person has tried to do without one to save money and have found themselves having all sorts of problems with the Inland Revenue because they have not filled in their return forms correctly or have made glaring errors in their accounts. It is worth noting however that there are also the odd few small businesses whose financial arrangements are so straightforward that they can get by without an accountant although this is generally not the norm.
Opening a business bank account can be a helpful factor in running your new enterprise. It would be a wise precaution to keep personal finances separate from your business ones and a business bank account will enable you to do that. There are no sinister motives here; it simply makes sense to track and maintain company transactions from a dedicated account rather than having to identify and separate them from a statement that contains your personal banking details as well.
A useful point to bear in mind is that a good working relationship with your bank manager is an asset to any business large or small. A new business will find help and advice from their bank manager invaluable. There must be give and take though; you do have to be honest with the bank. If you are experiencing financial difficulties in business, don't try to hide it ? inform the bank as soon as possible, they can then decide how best to go about solving the problem quickly.
With your chosen accountant acquired and your business bank account open, two key components of your enterprise are now in place. Other things to think about are premises, equipment, supplies or maybe staff. As the principal character in your new company only you will know what other requirements are needed to complete your set-up in order to commence trading, and no doubt have been giving a serious amount of thought to these particular matters.
Apart from the points already mentioned there are a myriad of other considerations involved in setting-up your business. All of them must be addressed at some point but obviously in order of importance. At times all this may seem like an insurmountable task, but the very fact that you made the decision to work for yourself means that you possess the determination and drive needed to see it through.
This article is the property of the author and may only be reproduced in its original form.
John Sheridan is a professional proofreader of hard copy items and website copy. He also writes web copy and occasionally accepts small copy-editing assignments. He can be contacted at: john@textcorrect.co.uk website: http://www.textcorrect.co.uk
Some analysts credit [Larry] Ellison with anticipating the consolidation in... Read More
I've either been involved with or held a process-related role... Read More
Obviously, there will never be an actual water shortage since... Read More
Growth through acquisition should not be considered an option reserved... Read More
I. INTRODUCTIONThe term resilience, which is of frequent use in... Read More
A focus group is a group of employees or current... Read More
Possibly THE most frequently asked question of me is "What... Read More
Business planning is widely acknowledged as one of the keys... Read More
This week I coached a wonderfully lovely woman I'll call... Read More
Microsoft Business Solutions Great Plains serves mid-size and large clients... Read More
Q: A key investor in my business has suggested that... Read More
When developing the competition section of your business plan, companies... Read More
If you are a manufacturer wanting to use your business... Read More
Imagine spending the same amount of money on marketing and... Read More
The format of a Business Plan is something that has... Read More
I read once that something like 30 percent of all... Read More
To Grow (Catapult) Your Business That's Why.When it's in your... Read More
Much of what we heard in the mass media about... Read More
No "meme" isn't a typo and Got Milk, the more... Read More
Business plan financial projections seem daunting because they are so... Read More
Note to Northwest Airlines ? It's not about fuel costsFor... Read More
I recently took an organizational behavior class where my professor... Read More
Microsoft Great Plains fits multiple services market niche and healthcare... Read More
Do you work in or own a business that's affected... Read More
Business seems to drop, slow or even stop during the... Read More
With a heightened awareness of opportunity, ideas can often be... Read More
Strategic planning is vital while starting a new business or... Read More
I love the excitement of starting up a new home... Read More
Here's a really simple way to make sure your plans... Read More
Storytelling and writing a business plan actually go hand in... Read More
Writing a business plan is no easy task, sure you... Read More
Whether you are seeking capital for your company or are... Read More
Part 1A few weeks ago I attended a seminar sponsored... Read More
"I don't need a business plan."Neither did Alice in Wonderland."Would... Read More
Last week we talked about a few of the ways... Read More
With the help of balanced scorecard strategy map, it is... Read More
Entrepreneurs often give little if any consideration to their computer... Read More
Business owners and entrepreneurs are, by nature, risk takers and... Read More
Although North Americans were the dominant population on the Internet,... Read More
The goal of almost every business owner is to generate... Read More
I'm not talking about posting the HBO schedule on your... Read More
Imagine spending the same amount of money on marketing and... Read More
Microsoft Great Plains does wonderful ERP job for horizontal markets... Read More
The time when a website was just a simple set... Read More
How often does your company make a quantum leap forward?... Read More
The trick is to determine what uniquely identifies your best... Read More
Succession planning requires the owner of a small or medium-sized... Read More
If you own a mobile car wash business or auto... Read More
Q: A key investor in my business has suggested that... Read More
Building a dynamic small business is a constantly evolving, increasingly... Read More
In today's rapidly changing and highly competitive markets, many privately... Read More
In Ohio: besides the 3-Cs you should look at Akron,... Read More
Business rises and falls on leadership. According to business guru,... Read More
Every decade we seem to come up with a buzz-word... Read More
Scenario OneDuring a recent presentation, a business owner was given... Read More
I am not a big fisherman, but I do enjoy... Read More
The current state of the available technology at the disposal... Read More
You have invested a lot of time and energy on... Read More
Microsoft Great Plains fits multiple services market niche and healthcare... Read More
In 1989, Sony founded its Institute of Wisdom at the... Read More
It is always said "If you Fail to Plan, you... Read More
"Bozo" ? A clown with a forlorn look, always finding... Read More
Ask a small business owner about their strategic plan and... Read More
Whether you are seeking capital for your company or are... Read More
All investors greatly desire and are motivated by a clear... Read More
A strategic alliance is when two or more businesses join... Read More
Strategic Planning |