I like to think I know a lot about my chosen profession. In the last 11 years I’ve worked in Web/IT I’ve had many different job descriptions and worn many different hats. From management to client liaison and of course my favourite, coding. So when I made the decision to go into business for myself, I wasn’t worried about having too narrow a skill set or doing the work I could get in.
However, I know nothing about starting a business and running it. The nuts and bolts of getting things done that have to be done. Accounts, insurance, taxes, expenses, PAYE, VAT – the list of things I knew nothing about towered over me and I was scared. Chances are if you are at this stage of striking out on your own, you are probably feeling the same. Luckily help is on hand.
For me the help came in the form of NWES – a local, council funded, business advice organisation. Most cities will have a place like this. Business Link are another that cover the UK fairly well and have a sizable online presence.
You can’t be afraid to ask for advice, and if the advice is free, all the better for the potential entrepreneur who is looking to bootstrap a company on the minimum needed.
Before starting a company, or registering anything official – seek out the advice of those that know.
I had an hour long session with an NWES advisor in which I laid out my plans bare, talked about what I knew and more importantly – what I didn’t. I got a lot of advice but essentially for my problems (the nuts and bolts of running a business) it boiled down to one thing:
Get an accountant.
They will register your company for you, and set it up in the most tax efficient way possible. Shop around, I had one guy try to charge me over twice on a monthly basis what I am being charged by the guy that I chose to use.
All accountants should offer a free first meeting, don’t just email them and ask for a quote – get to know them on a face to face basis – you will be placing your money in their hands. Prices will vary but from what I’ve seen the average monthly fee for running the books on a one person ltd company is about £60 – £70 in addition to one off charges for company registration.
In this period of the company (described on the Tim Ferriss blog as ‘Uninformed Optimism’), I don’t want to be worrying about tax liability or sorting out the PAYE, I want to be getting out there and getting work in, finding clients and pushing for business. If Overthink ltd survives past it’s first year or two, then I’ll look at doing some of the books myself – maybe.
At the moment my energy as the director (and caretaker) of the company is to ensure success. I can’t do this if I am struggling with end of year accounts and VAT returns.
Good Luck!