You might decide that you want to launch a side business to see how it goes or you only want to work a limited number of hours, whatever your reason or motivation, setting up a part-time business is an exciting time.
It might be that you want to search for a commercial property for sale so that you have a base for your new business, or you have some questions about how to set up the venture from a legal and taxation perspective.
Here are some key steps that you will probably need to take when you launch a new part-time business.
- Create a blueprint for success
The key to success for any type of new business often lies in how detailed and accurate the planning is. As the old saying goes, if you fail to plan, you plan to fail.
You will need to create a viable business plan which outlines how you will make money, how much cash you will need and what sort of future growth you might expect based on these numbers.
- Choose the right business structure
Another key point that you need to get right is how you structure the business. You might decide to operate as a sole proprietorship, or it might suit your future plans if you create a limited liability company (LLC) or a corporation.
The reason this aspect of your setup is so relevant and crucial is that it affects the tax you pay and your level of personal liability.
- Pick a winner
There is little doubt that the name of your business can have a real impact on the success you enjoy with your venture.
These days, it is a case of finding a memorable name that works well as an internet search as well as being a trading identify that manages to become synonymous with what it is you are selling to others. Check the domain name is available before you register a business name.
- Do you need any permits?
Some businesses will need to have certain permits and licenses to be able to operate legally in their area.
Make sure you check whether your type of business needs to get certain permissions in place before starting to trade.
- Find a suitable software package
All business owners rely on certain software to help them keep on top of things and see how the business is doing at the touch of a key.
A good accounting system is always a worthwhile investment as it will make it easier to keep your books in order and calculate what the business has made and owes in taxes.
If you are not sure which accounting software to choose you might want to ask your accountant which one they recommend, especially if you are going to be sharing data with them and want to exchange information as easily as possible.
If you have decided to launch a part-time business you will probably have some great ideas that you want to put into action but you need to get all these key setup aspects in place before you can start trading.
