Almost 5 years ago, I was lucky enough to be able to leave my ‘proper’ full time job and start my own business as a marketing consultant. I was eager to start my dream of being able to work for myself. I was so excited about getting new stuff for my home office. A new desk, laptop…etc. To decorate to my style. However, I decided to hold back for a while. Obviously I had to get all the boring stuff like paper and printer. However, I decided to wait on the other bits. See what i really needed when starting a new business.
Taking The Plunge
Thankfully, we had enough in our savings to get what I needed to get started. Incase you aren’t in the same position, you could look in to getting a small business loan to help get your business up and running.
Going self-employed was honestly the best thing I ever did. I don’t regret it at all. I honestly don’t know if I could go back to working for some one else now. Working for myself is something i’ve found so rewarding!
My Advice
Don’t rush into having everything right away. It may seem like a really good idea but doing it this way will mean you end up spending more than you need to. By leaving it a few months you’ll be able to see how you work. What your daily routines are. You’ll gradually start to notice things you’re in need of.
For example, little things like having my printer paper stored downstairs in the garage was a real annoyance. Yes, it only took me 2 minutes to run down and get it. However, this can be very distracting – especially when you work at home! I’d spot the dishwasher needed emptying, or there were some clothes to put away. What began as nipping down to get paper, would turn into an hours trip!
So, when you first set up your office, see what flows for you and make changes as you go. Make your work space as effective as you can for your needs to make you as productive as possible.
Office Space
My office started off in a spare bedroom. There was plenty of space for me, my computer and a few files. Working online I guess I don’t really need much to keep me going. As long as I have my computer and/or my phone, I can pretty much work anywhere. However, i found i was drawn more to the dining room table. It was brighter, cooler in the Summer months and was somehow less distracting.
However, I know that isn’t the case for many people. They might need space for when their clients visit (a spare bedroom doesn’t exactly say professional). Or perhaps your business is in sports massage, a personal trainer or even a beauty therapist. You’d need a lot more space! You could perhaps rent an office space – or even just a room for client meetings?
Marketing
When you start a new business you’ll want to spread the word as fast as you can. However, don’t be too pushy! Yes you want to get your company out there but you don’t want to put people off.
I started by going to local business meetings and introducing myself and my company. Networking is such a great way to get yourself noticed. I remember the first meeting I went to I got myself 2 new clients straight away.
Social Media
Another good way I found to market my business was by using social media – Twitter and Facebook mainly but also Instagram. It’s a free way to advertise your company to what could be huge audiences. Make sure you include hashtags, especially on Twitter that are relevant to your company.
This will help companies find you more easily. Utilise your social media platforms by engaging with other people. Show them your personality and that you aren’t just another person trying to sell to them. Take the time to build up relationships with people.
Video
Video is another great way of reaching out to your target audience. Not only will they get a better chance to know your personality, you’ll be able to really nail down the niche of the market you’re targeting.
Delivering content your viewers really enjoy. Nowadays, it’s easy to make a video online free of cost without a lot of technical knowledge about creating videos.
Self Employment
One of the first things you should do when you become self employed is register yourself as Self Employed. This is so important to do and if you don’t you could end up in a whole world of trouble WHEN they catch you! Thousands of pounds worth of fees and even jail time. It’s just not worth the risk! Even if you’re only earning a little bit each month. Or perhaps it’s cash in hand work. That still counts as being self employed!
It really isn’t hard to set up and doesn’t take long either. Plus, once it’s done you don’t have to worry about it again. They will send you through your UTR code which is your Unique Tax Reference code. At this point they’ll tell you when you need to do your first set of accounts.
It’s normally around October time for paper and January for online submissions. As I wasn’t sure on my first time I asked an accountant to do mine for me. Again, if you’re late or get it wrong, they could fine you huge amounts. If you aren’t sure, ask someone to do it for you!
Banking
The best way to keep track of all the money coming in was to set up a business only bank account. I set mine up with Santander as there weren’t any fees. I set it up as a normal credit account, not an actual business account (hence the no fees).
This way, each month I can see exactly what has gone in and out of the account and i’m not left trying to understand what on earth happened each month. The monthly statements come in and I just file them away incase I need them later. Or, for when i give them to my accountant for tax purposes.
Accounting
Starting your own business can be daunting, especially when it comes to tax and your accounts. It’s so important to get a qualified accountant local to where you live. I did think about doing it all online but it is so useful that my accountant lives 5 minutes down the road. We can sit down together and go through things clearly.
I had no idea about things like being able to add a portion of your electricity bill (when you work from home) to your business expenses. Or car mileage for any work trips. Another new one to me was the if you’re married, until you start to earn enough yourself, you can give some of your tax allowance to your partner so they get taxed less. I remember we did this back in my first year and my husband got a £500 tax refund.
The best way to find one is obviously to Google accountants in your area. I’d start by emailing a few and see which ones you get a good vibe from. If they take weeks to get back to you, may be that’s a sign they have too many businesses on their books. Another way to do your accounting is though companies such as EZLease for lease accounting who offer tools to help you with their accounting software and online support.
I’ve learnt so much from my accountant over the last 3 years! Oh, and make sure they are qualified, you’d be surprised at how many rogue accountant firms there are!
Filing
I keep paper copies of EVERYTHING! Apparently the tax people say you should keep all your documentation for at least 5 years going back incase they decide to do a spot check on you and your accounts. If this happens you will need EVERYTHING, invoices, receipts, the lot and they won’t take ‘I don’t have it’ as an excuse.
There are people who’ve never been spot checked. However, I also know people who have had multiple checks done on them over the years so it really is important to keep it all!
I got myself one of those plastic boxes to store each months papers in. I simply tie a piece of string around everything from that month and put it away in my box. Water proof boxes, just incase!
When starting your own business, making sure you get the correct programs like this HR system, if you need it, as it will help make your filing and organising so much easier!
Stationery
Something that can easily get overlooked when you are setting up a new business is to make sure you have all the stationery you will need both for yourself and for any employees you may have. Obviously there are the standard items such as pens, notebooks, paper for the printer, a diary and something find very useful is post-it notes or memo pads where you can jot down lists or notes to stick around your desk.
I often find there are so many things going on at once that it’s easy to forget a task so these memos are so important to me and an item I go through quite quickly. When it comes to diaries, I love the day-to-page styles as you can fit so much more on each page, the 2 or 3 days to a page just won’t cut it!
I hope you found this article interesting and it’s given you the courage to take the next step to starting your own business. You really won’t regret it and your world will be changed for the better because of it. Oh, but be prepared to let your new business take over your life, at least for the first year or so!
How would you go about starting your own business?
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