2022 saw an increase in the number of new business registered at Companies House. So how do you make your business a success? Here we look at some key tips.
Success comes from planning
Get yourself a solid business plan before you start your business and make sure you continually review it.
It will give you benchmarks to measure performance and ensure you are on the path to success.
The following forms the basis of a business plan:
- your product or service offering
- what sector of the market you are aiming for
- your unique selling points
- time focused goals for the business
- target customers and some research
- competitor analysis
- marketing and sales strategy
- financials including profit and loss and cash flow forecasts
- management team and personnel
Remember to go over your plan on a regular basis and don’t be afraid to update and adjust along the way.
Getting your pricing right is crucial to a successful business. Understanding what customers are willing to pay will give you a head start. You can conduct some research yourself or work with a market research company.
Also, get to grips with what your competitors charge. If you are charging a premium then make sure the added value is well communicated to potential customers.
Costing will also play a role when you draw up your price list. Understand what costs you will incur to make sure you achieve a profit margin that works for you. Think of both direct costs (like raw materials, packaging and shipping) and indirect costs (like rent, insurance and marketing).
Keep an eye on costs and cash flow
Monitoring cash flow is crucial to any successful business. Keep plenty of cash on hand and a sharp eye on your expenditure.
Be quick to identify where you are spending too much cash and come up with a solution to bring it back under control.
Cash flow is key to any successful business and good management is vital to achieve growth.
Accounting and tax
Getting to grips with the accounting requirements and tax liabilities is key to a successful business.
Identifying the best business structure for you at the start will outline what legal requirements you must follow throughout your business journey.
Understand what tax is due and when is also key to running a successful business. There will be filing obligations for your business that you need to understand.
Tax planning is important too. Making sure you are keeping as much of your hard earned cash as possible.
But you did not start a business to get your head around all of this. Work with an experienced accountant to get all the help you need and allow you to focus on running and growing your business.
As you grow your business it may be necessary to find some form of external finance. At some point in your business journey you may want to expand by moving to new premises, hiring staff, buy new equipment or launch new products or services.
Some of the options available to you include friends and family, grants, start-up loans, bank loans and overdrafts, credit cards or crowdfunding. Talk to an expert to get advice based on your circumstances.
How Taxevo can help
When you’re busy running your own Limited Company, you want to know you’ve got an accountant you can trust that’s on your side, keeping an eye out for ways in which you can increase your success year on year. That’s where Taxevo comes in! From helping you getting started to running your business’ finances in a more efficient way, we’re on hand to help you achieve your contracting goals. For more information, get in touch today.