Where to Start? An A to Z Guide for Entrepreneurs

Starting a new business is a very exciting time – however, it is also verychallenging. Luckily there is plenty of help at hand for those who are clever enoughto look for it. Did I say clever? Yes, I did, because many entrepreneurs chargeheadlong into their pet projects without giving due consideration to the resourcesavailable to them. While the energy levels for all entrepreneurs tend to be veryhigh, it is important to step back, when appropriate, to ensure that the properadvice is being obtained. For many people, a new business is like a boat sailing inuncharted territory. One can reduce the inherent uncertainty and risk with goodadvice, appropriate planning and a dollop of experience. The following articlecontains some advice and recommendations for those starting up in the UK. Whilenot a ‘bootstrappers’ guide

per se

, the assumed audience are UK-basedentrepreneurs looking to set up with fewer than five employees and limited fundingat their disposal.

Where to Start?

Given that one area of particular interest for us isbusiness planning, it seems like avery good place to start. You must resist all temptation to skipwriting a businessplan. Preparing a business plan is a vital first step on the journey of allentrepreneurs. Sure, it may seem like a difficult proposition, especially if it’s the firsttime you have to write a business plan. However, the business planning process willreally help you get a feel for the various elements that will determine your success,from cash flow, to sales forecasting to your personnel structure. You skip this criticalprocess at your own peril.Naturally, we recommendBusiness Plan Pro 11.0(RRP £79.99) as the best meansavailable to write a business plan. Business Plan Pro helps you to structure yourbusiness plan, is exhaustive (meaning you cover everything) and offers help atevery step. Alternative methods include writing the plan yourself, using productssuch as Microsoft Word and Excel, or paying someone to write it for you.Unfortunately, these other methods either leave you staring at a blank screen, orsimply help you avoid thinking through the conceptual and financial issues critical toyour business. Whatever method you choose, you will find more information onwriting a business plan at ourbusiness plansite.If the industry is relatively new to you, I’d recommend you purchase a BusinessInformation Factsheet or Business Opportunity Profile fromCobweb. These factsheets will help you understand some of the live issues within your sector. Theseprofiles include options such as‘How to Start a Coffee Shop’to‘How to Start a Restaurant’and cost about £5.I cannot stress enough at this point the importance of getting advice. The greatthing about starting a business is that there are lots of experts who may be

blogging about their experiences or have written about the issues they faced andsome of the hurdles they have overcome. Here are some of my personal tips forsome key areas in getting started:

Accountant

Speak to an accountant early on in the process. They can help you decide the bestlegal structure for your business, explain VAT and also advise you on other financialobligations.Aims Accountantsare a group of accountants that are scattered aroundthe UK and are ideal for start-ups.

Accounts

You must get a grip on finances from day one – don’t assume it can be alloutsourced to an accountant or bookkeeper. I would recommend taking a look atproducts such asIntuit’s QuickBooksorSage 50 Accounts 2008. The bottom line here is that certain things, such as cash-flow management, are often neglected byentrepreneurs. If you have to pay for things up front and only receive cash 30 dayslater you will have a potentially crippling financing gap. By ensuring you invoicepromptly and manage accounts receivable/ debtors you will be in a better positionto ride out any credit problems.

Antivirus Software

All computer users should have an antivirus package in place (at the very least) toprotect against viruses, etc. Packages are available online and from stores such asAmazonandPC World. Market leaders includeNortonandMcAfee, but there are also good, lower-cost alternatives available such asAVG.

Bank Account

You will also need to open a bank account. There are many different banks offeringgood opening offers for start-ups, so do your research. You can also follow threadson websites such asUK Business ForumsorBytestartto read reviews from current customers. Naturally, it is vital that the bank is competitive and has a good onlinepresence so you can manage your accounts online. While you are researching bankaccount options, speak to them about other financial services products, such ascompany credit cards and merchant services (an ability to take credit cardpayments). Whatever you do, keep business expenses, costs and accountscompletely separate from your personal ones.

Business Books

Looking for some books to help get you started? We recommend thePearsonrangeand also The Essential Business Guide. To avail of discounted copies pleaseclick here. Business Plan Pro 11.0 includes

Hurdle: The Book on Business Planning

by TimBerry free in PDF format.

Business Cards