New business start ups on the rise

One positive thing to come out of the Covid pandemic is the amount of new business start ups in the UK. 2020 saw an extra 84,758 businesses setting up, compared with 2019. This is equivalent to a 12.3 per cent increase year on year, which is the highest percentage growth since 2011 and the highest actual growth on record.

Starting up a new business is both an exciting and a challenging task, which carries with it an element of risk. Key decisions need to be made, and there are many factors to consider.

Business plan for new business start up

A business plan is an essential document that will guide you in establishing and growing your new venture; helping you focus your thoughts, providing you with targets and goals as well as giving you an indication of your cash requirements.

Finance for new business start up

Business financing can take two forms: debt or equity. Debt means borrowing money. Loans may come from family, friends, banks, other financial institutions, or professional investors. Equity relates to selling an ownership interest in your business. Such a sale can take many forms, such as the admitting of a partner or, if you are in a company, issuing of additional shares to investors.

Getting a grant is also an option. There are many different small business and start-up grants available depending on where your business is based, how large it is and what you do.

What type of company is right for a new business start up

Options are: Sole Trader, Limited Company, Company Limited by Guarantee and Limited Liability Partnership (LLP). The type of company you choose will be dependent on the nature of the business you intend to carry out.

Taxes, legalities, and insurance for a new business start up

A significant task for a new business owner is ensuring that the business complies with the extensive tax, legislation and insurance requirements that are imposed by various authorities. To avoid problems, penalties and – in some cases – legal action, it is important to understand your obligations.

Stephenson Smart are Chartered Accountants and Business Advisors in Norfolk and Cambridgeshire. We can guide you through these important decision-making processes. As specialist business start up advisors, we can help you make the appropriate registrations, assist with cash flow forecasts and offer regular updates to enable you to monitor the performance of your business.

Related Services: Business Start Up Advice