What to do before you start-up in business

Setting up on your own can be one of the most challenging things you will do in life.

The aim, obviously, is ensure you succeed and earn a living, and to achieve that there are key areas that you will need to understand.

Competitors - what do you know about them, who are they? What are their weaknesses? What do they charge? Remember that research into your competitors is key.

Managing your time - you need to be prepared for the fact that the usual nine-to-five existence you’ve probably enjoyed so far in your working life may have to become a 12 hour day or longer, at least for the first few months or so.

Disruption to family life – you will need support and understanding from those close to you, 9 til 5 now goes out the window.

Cash – it is important that you have a buffer. Typically at least 6 months living expenses you will need to have as a reserve. Do not rely on the fact that a bank will lend you the money.

Understand what you are not good at – this is key as you will try to do everything yourself. Speak to your accountant and let them help you. These people really can mean the difference between make and break. You’ll also need to shop around the find the right bank to handle your new small business affairs. Consider factors such as whether you will have an individual available to answer any queries as they arise, as well as what the bank charges for borrowing money and general transactions.

And if, after all of this, you’ve decided that starting a business is the thing for you, you’ll need to think about the business structure you will be trading under – are you going to be a sole trader, set up a limited company or form a partnership? But you can ask your accountant about that.....