An accountant’s guide to starting a business

There are many aspects to starting a business that can seem daunting when you’re setting up. Imran Sattar of AIMS Accountants gives us a step-by-step guide of what to consider Words by Tom Young

1Brainstorm your idea

A great idea is the reason you decided to strike out on your own and start a business. You’ll need to refine and test that idea to make sure it’s a viable option.

7Set up an accounting system

The right bookkeeping system will help you maintain a good record of what you owe and own. With a bank account, you will be able to accept payments and pay your creditors. You will also be required to set up a business bank account that’s separate from your personal one.

6Apply for tax UTR

As a registered UK business, you’re going to need to apply for an identification number from HMRC called Unique Tax Reference (UTR). This is how your business is recognised by the government when it comes to paying taxes.

2Conduct market research

Many businesses fail because there is no market need. To prevent this, you’ll need to have a clear understanding of how and where your business idea fits in the market. Conduct thorough market research on everything from potential customers to industryrelated reports and statistics.

3Write up a business plan

An organised plan is essential. At its core, a business plan serves as a roadmap for how to structure, operate and manage your new venture. It also helps attract potential partners, investors and banks, and lets you break down the cost of starting a business.

4Choose a legal structure

The most common types of businesses are: Sole trader: A business owned by one individual, who takes all legal responsibility Partnership: The formal agreement between two or more people who work together toward a common goal Limited Company: An organisation legally considered to act as a single entity

5Check out competitors

You’ll need to analyse your competition. Conducting competitive research helps you learn about the market, your potential customers and forecast industry trends. It will also help you predict how others will perceive you and make improvements to your own venture. Most importantly, you’ll learn what other companies did right and which mistakes to avoid.