Blog - business tips

The First Year In Business: How Successful Startups Made It Through

07 October 2016

Starting a business is a big risk, but often one that is worth taking. A lot of the time, start-up owners are on the line financially and sometimes even mentally during their first year of business. That first year is critical in deciding whether your business will be a success or a failure. While no one possesses a magic formula that can tell you for sure if your business will be a hit or a miss, these tips will help you to make that first year as good as it can be and line your business up for its best chance at success!

Keep on trying

When you read about businesses succeeding or failing, you’d be forgiven for thinking that there are only two options – magical unicorn businesses that are instant runaway successes and disastrous failures – businesses that have always lacked potential and are doomed from the start. The truth is that most startup businesses usually fall somewhere in-between these two extremes.

In order to influence your business in the right direction, perspiration and perseverance is required in order to make your inspiration pay off. It’s also important to try and maintain a positive outlook despite the challenges that your business will inevitably face. If you can see past these challenges to the future of your business, then you’re well on your way to succeeding.

Work together

Time is a commodity during the first year of a start-up and business owners are often immersed in the business, but it can be good to take some time to talk to colleagues, friends and other advisors. Collaborating with these people is a great way to gain feedback, insight and even new ideas that could help your business.

Not every conversation will be of value to your business, but in general most will be positive and you’ll also be building yourself a support network that will be useful in years to come.

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Enjoy the journey

This is an important one! There are a lot of risks involved with starting a business and some challenges can seem insurmountable and create a lot of stress. However, the opportunity to pursue something you truly believe in, to see it grow and to be your own boss is considered by most to be excellent compensation for the initial tough times after forming your company.

Plan for the future!

Planning for year two is something that is important to do. Setting long term goals, such as having five year plans, is also recommended by many leading entrepreneurs. This will also help you to see past any challenges that appear during year one and aid you in finding a way through to business success. It’s also great to set goals so that you know exactly what each task you do is contributing to!

Are you ready to begin your business journey to success?

From forming your company with our online company formation service, to business accounting and much more, we’re here to help your business on its journey to success. Find out more about the services we offer on our website: blog.eformations.co.uk Or alternatively, give us a call for a friendly chat on: 0208 232 5479.

7 Reasons Why You Should Start An Online Business

02 March 2015

If you’re thinking about forming a company, you’ve probably already considered using online strategy to help your business succeed, but how about starting a business exclusively online? There are many benefits to running a business in the virtual world, especially if your product or service lends itself to the online platform. Here are seven reasons why you might want to start an online limited company as opposed to a more traditional limited company.

If you are considering forming an online business, it is a great idea to register as a limited company because it gives protection to the trader and helps to establish a trust in the customer when purchasing something from an online trader.

  1. You can work from anywhere

One of the main benefits of starting a business online, is that you can work from anywhere in the world without needing a physical premises. However, some businesses benefit from the gravitas of having a business address. If you would like a business address, but don’t wish to rent premises, why not have a look at our business address service?

  1. You can get started on a shoestring budget

A traditional business would require premises, stock, and employees, which means a large outlay of cash before the business has even started! Setting up an online business greatly cuts these costs as all you need to start selling is a website. You can also cut costs by outsourcing tasks rather than taking on permanent employees. This will mean less paperwork for your business!

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  1. It’s simple to go global

Using the internet makes it easy to reach and sell to customers all over the world. However, if you do have the intention of taking your products and services global, be sure to look into the latest VAT legislation for the EU.

  1. There’s easy access to a huge number of potential clients

With a traditional business, you are often limited by your location and can only market to those within a small distance of your business. When you’re online, it’s possible to reach a far wider range of potential customers, which should hopefully result in more income!

  1. Digital marketing is affordable and effective

Traditional forms of marketing, such as newspaper ads, are always a bit hit and miss, as it’s difficult to accurately quantify results. Marketing online, through Google or on social media, is a great way to run low budget, well targeted ad campaigns with results you can easily analyse.

  1. Your business can be open twenty four hours a day

By having a website, your business can be accessed at any time of the day or night, which customers find incredibly convenient.

  1. Be more flexible

Most traditional businesses work between the hours of nine to five, or similar. When you run your business online, you can choose your own hours to suit you and your business’s needs. If you’re working from home, you’ll also have more time to spend with family.

Are you starting a business?

At eformations, we offer a company formation service that can be done online in three to five working hours. You can find out more about this service and get started right now by visiting this page: https://blog.eformations.co.uk/how-to-buy/

If you have any questions or would like to discuss any of our other services, please contact us for a friendly chat on 020 8232 5479 or visit https://blog.eformations.co.uk 

 

 

 

 

Six Accounting Apps That Will Change The Way You Manage Your Business 

05 November 2014

Phones are often used for snapping selfies, sending emails, and making calls, but did you know that the technology currently sitting in your pocket can be used to help you manage your business? With the ready availability of the inbuilt camera, using your smart phone as a way to keep track of invoices and receipts is a great idea. There are many accounting apps available which can turn your phone into a mobile accountant.

Here’s an overview of six accounting apps that will change the way you manage your business in the future:

Earnest (Apple)

Earnest is a free, simple record keeping app for Apple devices developed by FreeAgent. With this app it’s possible to track your income, watch your expenses, monitor business cashflow, and keep an eye on tax so you’ll never miss those deadlines. Earnest can even give you an estimate of how much tax you’ll owe.

Mint (Android)

Mint is a free app that is advertised as a personal finance app. However, it does offer useful tools for small business owners and entrepreneurs. It’s possible to add credit cards and bank accounts and the app will pull in and categorise your transactions so it’s easy to see where money is going. Having organised finances means that you can spend more time focussing on the business.

Shoeboxed (Android)

Shoeboxed is a receipt, bill, and financial document organiser for Android devices. It has the neat ability of being able to extract important information (date, payment type, vendor, total, etc.) from the receipt which then creates a searchable digital database. Ditching the real-life shoebox for this app will save you time and money.

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Sage Record Keeper (Apple) 

Sage Record Keeper is a free app for Apple devices which has been designed to help self-employed people keep cash records. As well as being a great way to organise your transactions and track deadlines, this accounting app also stores six years of tax records for future auditing or reference. There’s a lot more to this accounting app and it is well worth visiting the app page to have a look.

Freshbooks (Android) 

Freshbooks is an easy to use accounting app for Android devices which makes it possible to track your business’s expenses and profits. Like other accounting app services, it charts and organises your business’s expenses to help you make good business decisions and file your taxes. It has some extra functionalities which might be useful for your business.

Quick File (Apple) 

Fed up of losing all of those receipts in the washing machine? Never lose a receipt or an invoice again with this free app for Apple devices. Quick File makes it possible to quickly photograph, crop, and file your receipts. It’s easy to view the receipts on your phone or online when you need them again.

Help with business accounting

If you need help organising your business’s accounts, we offer a professional accountancy service. Contact us for a friendly chat on 020 8232 5479 or visit https://blog.eformations.co.uk  for more information about the services we provide for businesses.

Responsibilities of Directors of a Limited Company

19 August 2014

You have probably already carried out research on setting up a limited company and have learnt that it takes only one person to set up a limited company. Such a company is called a sole director company. On blog.eformations.co.uk you can appoint yourself as a director and a shareholder and off you go – your company is incorporated.  But, have you wondered what responsibilities are attached with this prestigious title?

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First of all, what are directors?

Directors are essentially people responsible for running the company. They are employees of the company. They work for the benefit of shareholders (members). A director’s prime duty, which he holds together with his fellow directors is to promote the success of the company for the benefit of its members.

The Companies Act 2006 introduced four duties of directors on 1 October 2007 and a further three came into effect on 1 October 2008.These seven duties are:-

  1. To act within the powers (CA2006 s.171) conferred upon them by company law and the company’s Articles of Association.
  1. To promote the success of the company (CA2006 s.172) and in doing so have regard to some matters, for example:

– The likely consequences of any decision in the long term.

– The interests of the company’s employees.

– The need to act fairly between members of the company.

Hence, they must ensure that the company is able to pay its debts and may be held personally liable if it is unable to do so.

  1. To exercise independent judgment (CA2006 s.173).
  1. To exercise reasonable care, skill and diligence (CA2006 s.174).
  1. To avoid conflicts of interest (CA2006 s.175). Directors must avoid situations in which they have or might have a direct or indirect interest that might conflict with the interest of the company.
  1. Not to accept benefits from third parties (CA2006 s.176). They must not use their position to further their own interest.
  1. To declare interests in any proposed transaction or arrangement (CA2006 s.177). 

Directors’ Responsibilities to Companies House

In carrying out their day to day duties directors have responsibilities towards Companies House. They have to prepare and deliver documents, on behalf of the company, to Companies House as and when required by the Companies Act.

  • The annual return.
  • The annual accounts.
  • Notification of any change in the company’s officers or in their personal details.
  • Notification of a change to the company’s registered office.
  • Allotment of shares.
  • Registration of any charges.

The chores of the directors seem onerous but can be considerably lightened by using our service. Call us now on 020 82325479.

Beware The Heat Wave Then The Storm

12 August 2014

What to do when business is good and when business is bad.

Hopefully you’ve had chance to go outside and catch some rays in the glorious sunshine this summer. However, we’ve also had our fair share of dramatic storms.

The same weather patterns are true for business. While the heat wave times of booming business are great, are you prepared to deal with the storms? We look at what you should do to ensure your business stays successful through the good times and the bad.

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What to do in the storms when business is lean:

Reach out to Old Contacts

You’ll have more time on your hands, so use this as an opportunity to reach out to people you’ve had dealings with in the past. This is a good time to network, and new opportunities are more likely to come your way when you’re out looking for them. Another great tip is to not be above doing jobs which aren’t exactly the work you’re looking for. The main aim is to generate cashflow that will tide you over.

Account for it in Advance

For some businesses, this kind of prediction can be difficult to make. However, if you do have some idea of when your down periods may be, you should try and account for it in advance so you know how the business will survive during these times. A good way of doing this is to create a cashflow forecast, so you can have some idea of the kind of ups and downs you’d expect to see in a typical year. Your business type will affect which seasons are good and bad, but common down seasons might be August, when everyone’s on holiday, and January, when everyone’s low on cash after Christmas.

Be Honest with your Employees

If the business is going through a hard time, one of the best things you can do is to be honest with your employees. If you’re going to have to cut back on your expenses, they’ll appreciate you being upfront with them and may even have thoughts on how to make the business more efficient.

What to do in the heat wave when business is good:

You could be forgiven for assuming that you don’t need to take any action when your business is doing well. But while congratulations is in order, there are still some steps you can take to ensure your business continues on the upward trajectory and is also well prepared for any future storms.

Make note of what’s working well

If you haven’t already done so, keep track of the actions you took which led to success and the market conditions in which you flourished. No matter how successful you are, there will always be an area that you can improve in.

Improve the customer experience

A side effect of success can be a reduction in the quality of customer service due to being so busy. To avoid this from happening, be sure to ask for feedback and work on any areas that could be improved.

Need more business advice?

If you have any business related questions, feel free to comment below or send us a message.