CLLA and Business Start Ups
Starting a new business is an exciting time. We always say that you need to plan for an uncertain time over the first two years – and at that point you will know if you are going to succeed in your new venture. You are more likely to succeed if you have a clear idea about your strategy and the financial implications.
A common problem in business start-ups is not allowing for sufficient overhead recovery in the initial months. It takes time for a new business to find its place in the market and it is tempting to keep prices low in order to win business. Overhead recovery must always be considered and we would advise any new business to look ahead and set your prices now for where you want to be in 6 months to a year’s time. If you cannot keep within the price the market will bear it will not be a viable business – so you need to reconsider your business model.
Having a clear idea of your business model is the key to success. This model can be prepared under several different scenarios so you can have contingency plans in place for the different situations you may be faced with on your new business. Forewarned is forearmed. A good business plan will be required if you need to approach a bank or lender for finance – very likely in a business producing goods and expanding rapidly. Working capital can become in short supply but is needed for the business to take the next step.
We can advise on the best vehicle for your business (sole trade, partnership or limited company), looking at the tax implications of each and ensuring you understand the implications of each. We will work with you to get your finances in the best possible shape from the word go.
Contact us for a free initial meeting to discuss your plans.