What do you need to do to become self employed? Reply


Business people group.

First, you should create a business plan.

Approximately a third of all SME’s in the UK don’t have a Business Plan, that’s about 1.5m businesses, here are some reasons why you should prepare one….

  1. Research by Exact Software shows that SME’s with Business Plans make 20% more profit
  2. Having a business plan doubles your chances of increasing profits, increasing revenue, attracting new clients
  3. A well-researched business plan which includes the right figures and realistic forecasts will reassure potential investors you are a sensible investment opportunity
  4. A Business Plan will help you set out and achieve your goals
  5. It will help you set goals for your managers and staff
  6. The Business Plan will help you plan your cash flow and forecast Capital Expenditure
  7. A Business Plan will help you secure Business Finance and Loans
  8. You can plan your succession strategy or prepare the business for sale
  9. A Business Plan tests the feasibility of your business idea
  10. It will help you plan for the recruitment of Staff

Your responsibilities

You’re responsible for:

Ask an Accountant for Help with…

  • Choose the right business structure for your business – most businesses start out as sole traders but once they start making profits convert to limited companies, this is because sole traders pay more tax than company structures
  • Choose the best VAT Scheme you might be better off with Flat Rate or Cash Accounting
  • Choose the most suitable accounting software
  • Don’t mix up Business and Personal Expenses – always have separate bank accounts
  • Reconcile your Bank Transactions regularly – its easy to forget what you have spent checking the bank account keeps you in control
  • Understand and manage your cash cycle – how long does it take to get paid and what credit terms do you suppliers give you?
  • Manage customer payments and make it easy to pay your invoices
  • Understand and Comply with rules like National Minimum Wage and Holiday Pay
  • Understand and set money aside for Tax, don’t be late paying your tax

steve@bicknells.net

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