start your own business by bizzybean

VIEWS: 33 PAGES: 4

More Info
									                 START YOUR OWN BUSINESS GUIDE 2009


Getting Started
Setting up your own business is a major decision to make. There are many
reasons why someone may decide to set up a business. They may have to do so
out of necessity, they may have an idea or identified a gap in the market, they
may have the capability to do so and after many years of working for someone
else, decide they can do this for themselves and that they can run a business
smarter and more efficiently.

The most important thing to do when considering setting up in business is to
research your potential business. Consider what the market needs. Research the
product or service you intend to provide. Who else provides this service? Do
they do this differently than you intend to? What could you do better?
How much do they charge? How would you intend to sell your product/service
?. How would you deliver your product or service? Where would you locate
your business? Are there suitable business premises available to rent? How
much would it cost to set up? Would the banks consider you for a loan ? Are
there grant aids available ?. All these issues need to be researched and many
more.

Other issues to consider when setting up a business are :

Which legal structure is suitable for you ?. Would you be best suited to set up
as a sole trader, company or a partnership ? A sole trader is most suited to
someone who may be investing a small amount of money into the business. It
may also suit someone who wishes to go into business on their own. The
disadvantage of setting up a business as a sole trader is that in the case of a sole
trader getting into trouble financially, the business is not set up as a separate
entity and the sole trader will be personally liable for the debts of the company.

A company is where two or more people come together to set up a business and
register a separate legal entity. In the event of the company getting into financial
difficulty and not being able to meet their debts, the company is only liable for
the amount the shareholder has invested in the company. They are not
personally liable for the debts of the company.

A partnership is an agreement between two or more people who wish to conduct
business together. It is important to note that each partner is liable for all the
liabilities of the business. It is also extremely important to have a partnership
agreement drawn up to set out formalities.




                                         1
Registering a Business Name: To register a business name, you register the
name with the Companies Registration Office. To do so you complete a Form
RBN1B. Forms can also be downloaded on www.cro.ie
Send the form and fee to The Registrar of Companies, Companies Registration
Office, Parnell House, 14 Parnell Square, Dublin 1.

Registration for Tax: Businesses in Ireland must register for tax. To register for
tax, you must notify the Revenue Commissioners at your local office that you
have started in business.




Relevant Forms for registering for tax are:
Form TR1: To be used if you are a sole trader or a partnership
Form TR2: To be used if you are a limited company.

The purpose of these forms are to ensure that you as the business owner is
registered for all the necessary applicable taxes (Income Tax, VAT, Employer’s
PAYE/PRSI and if applicable as a Principal Contractor). It is important to note
that you can register for all taxes or elements of taxes.

Trading Laws: Trading laws must also be taken into consideration. Will the
premises you operate your business from have the necessary planning
permission? If you are operating a food business or crèche or indeed any
business, what health & safety rules and regulations are you subject to? If you
are employing people, you will have to become familiar with employment
legislation. Do you require a licence to run your business? e.g. a recruitment
company.

Insurance: There are many types of business insurances that a potential business
person needs to become familiar with; Fire, Burglary/theft, public liability,
product liability, employer’s liability and motor insurance.

Marketing: In order to make a success of your business, you need to ensure that
people will buy your product or service. Marketing will encompass all decisions
you make in your business from the products or services you will sell, the prices
you will sell them at, the customer service you provide, the distribution channels
you will make your product or service available from, how you ensure
customers will get to know about the service you provide and how you go about
selling the product. All these decisions and the quality of the decisions are made
through market research. Thus, market research is fundamental to the survival
and success of your business.



                                        2
Finance:
Questions need to be answered as to how the business will be financed. Have
you capital to invest in the business or will you be seeking borrowing and credit
facilities from the bank? To seek borrowing facilities from the bank, it will be
necessary to have a business plan /proposal prepared. The bank will need to
know about your plans for the business, who will be running the business? How
much it will cost you to set up and run the business? How much money you
have to invest in it? Projected accounts for at least one year (Cash flows) are
essential to have prepared for you to know how much income you expect to take
in over the next twelve months and what outgoings you expect to have during
the same period.

Finance may also be sourced from elsewhere and a good starting point is to seek
assistance as to possible sources of finance from your local County Enterprise
Board. Grant aid may be available to certain sectors in the form of capital,
employment, feasibility studies or towards website grant assistance or exhibiting
at trade fairs. The Enterprise Officer may be able to point you in the direction of
other possible sources of funding.


Managing your finances right from the start is important. Good financial
management is about having up to date information about how your business is
performing on a day to day basis in an easy to understand format. It will also
allow you to take control of both your creditors and debtors and allow you to
plan for your business in the short to medium term.

The Profit & Loss Account tells you whether your business made a profit or loss
during a particular period of time. The P& L is a summary of all the sales made
during the year and all the associated costs or expenses incurred in making those
sales, regardless of when you pay for the goods or services. Please note that
capital items are not part of the normal operations of the business and will not be
included in the P&L A/c.

The Balance Sheet is a statement that shows the assets and liabilities of a business
i.e. what the business owns and owes. It also shows what the amount the owners
invested in the business. It shows the financial position of your business at a
single point in time. It identifies your working capital position and funding
needs.




                                         3
Business Plan: It is essential that a business prepares a business plan in order for
them to plan where they want to go and how they plan on doing so. Business
planning should be an ongoing process. A good business plan will have a
structure which will address the what the business wants to do, the ownership
and management of a business, how the business will be marketed, competition,
financial information and in the case of start-ups, it will include projected
cashflow, profit and loss account and balance sheet.


Support : One of the fundamental secrets to succeeding in business is to
surround yourself with good people and advice. Help and assistance is available
to you from a good accountant, your bank manager, your local County or City
Enterprise Board. The
County & City Enterprise Board may be able to provide you with advice and
assistance, financial assistance, training programmes and mentoring support.




Westmeath County Enterprise Board.

Please note all information is correct at the time of going to press. If you are
considering setting up your own business you are advised to consult with a
member of staff from Westmeath County Enterprise Board to clarify all issues
outlined herein.




                                         4

								
To top