Follow these steps to find out if your light-bulb moment has the potential to become a viable business idea:
Running a business is time-consuming and to make sure that a business is successful it is essential to manage your time effectively. It is important to spend time on the core tasks. Too much effort spent in the wrong areas will not only affect productivity but will also lead to stress and anxiety – a recipe for failure.
Not everything can be done by one person – identify areas of work that can be given to someone else. For example, outsourcing your bookkeeping and/or payroll rather than spending valuable time on something that is not the main area of work for the business. Finances are key to success and should not take a backseat – if not delegated this could easily happen.
Making informed decisions
You don’t just make business decisions once a year, so why only produce accounts once a year. By producing regular management accounts you can ensure you are making business decisions with up to date information. This will help you to make better business decisions and keep a handle on your expenditure.
Spending money is an inevitable part of running a business. However, by analysing your expenditure regularly you can ensure you are using your money wisely.
When employing staff its important you consider the following things:
- How much to pay them – you must pay your employee at least the minimum wage
- If they have legal right to work in the UK
- Getting employment insurance
- Giving your employee a written statement of employment for anyone you’re employing for more than a month
- Registering as an employer with HMRC
- Whether you need to auto-enrol your staff into a workplace pension
You will need to run a payroll system for all your employees and ensure the correct tax is deducted and paid to HMRC on a time.