BG002 A Start - The First Step
Taxco Business Guide
Starting a Business
The objective of this business guide is to guide entrepreneurs with their initial thought process and considerations before any capital outlay or trading and to explain how Taxco can assist with starting a business.
It is the ambition of many people to run their own business.
Some may have been retrenched and find themselves with free time and financial resources. Others make the decision to start up in business to be more independent and obtain the full financial reward for their efforts. Whatever the reason, a number of dangers exist. Probably the greatest concern is the possibility of business failure.
Attributes of Successful Entrepreneurs
You do not need all of these characteristics but, successful entrepreneurs, have the majority of these qualities.
Positive - decisive and enthusiastic to succeed?
Proactive - do you go out to get things or do you let them come to you?
Determined - have you clearly-defined personal and business goals?
Hardworking - do you mind being tied to the business seven days a week?
Leadership - are you able to get the best from your colleagues and discipline them when necessary?
Opportunist - will you see openings in your market and develop products for it?
Self-critical - are you able to review your own performance and welcome advice from others?
Flexible - could you change your products or methods quickly when necessary?
Factors to Consider
In order to make your business a success there are a number of key factors which should be considered:
Commitment - starting a business is demanding. Determination and enthusiasm are essential.
Skills - you will need managerial, financial, technical and marketing skills. If you do not have these skills personally, they can be found in a partner or employee, or acquired through training or outsourcing.
Your product or service - should have a proven or tested market, but must not conflict with the patent or rights of an existing business.
Erratic spending power - you must appreciate that in becoming self-employed you will lose the comfort of having a regular income. There will be times when you will have very positive cash flow but also times when money is short. Therefore during times of shortage you must be prepared to do without some luxuries for both yourself, your family and your business.
Making sure the family is with you - Starting a business is not easy and your family must both be on your side and also lend you support. Initially, especially in the early days, you could often find yourself away from your family for long, unsocial hours. Their understanding can be invaluable. It can help to get your family involved in aspects of the business. There may be many jobs that can be easily delegated to them. It may also help on the financial side that they understand why there may be a tight control of the family finances.
Identifying your skills - You may be considering self-employment to exploit your talents. Running a business needs many skills. You should identify those things you are good at and those with which you will need help. You may wish to employ people with the necessary skills or, alternatively, consider contracting out certain tasks.
Researching your market - You must research as much as possible about the marketplace, your potential customers and competitors. It is vital to have knowledge of these areas when considering whether you have a potentially successful business proposition. You may wish to use published material or ask people who are likely to buy from you, either directly or by market survey.
Research to following:
Your target market - its size and whether it is expanding or contracting.
Your customers - Who are they? Where are they? What do they want? How much will they pay?
Your competitors - what are their products, prices and market share?
Prepare a business plan
Business Start-up List
1. Prepare a business plan
2. Determine your target market
3. Select a site
4. Decide on the name and legal entity of your business
5. Pay deposits
6. Apply for services
7. Comply with statutory registrations
8. Open a cheque account
9. Insure the business
10. Rent a post office box
11. Equip the business premises
12. Stationery and supplies
13. Employ staff
How can Taxco help?
You will need to consider all the above very seriously, involve your family and make a trial business plan. Taxco can help you to plan, assess your plan and with our wealth of experience answer any questions you may have.
Whilst some generalisation can be made about starting up a business, it is always necessary to tailor the strategy to fit your situation.
Any plan must take account of your circumstances and aspirations. Whilst business success can never be guaranteed, professional advice can help to avoid some of the problems which befall new businesses.
We would welcome the opportunity to assist you in formulating a strategy suitable for your own requirements. We can also provide key services such as bookkeeping, management accounts, VAT return and Payroll preparation at an early stage.
For more details, Contact Us now to discuss how we can assist you to make an informed decision and possibly save a lot of money by avoiding the common pitfalls when starting a business.
This Guide is subject to the Terms and Conditions of Use of Taxco Services and their Website.