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For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

It is likely your business could not function without some form of IT. Learn how to specify, buy, maintain and secure your business IT.

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

How I started up as a sole trader

If you're working alone, with limited financial liability, setting up as a sole trader may be an easier option than starting a limited company. Andy Oakley of Bath & Bristol Damp Proofing explains why he chose sole trader status

"I started out as a sole trader more than a decade ago. I'd already been to college to do an NVQ level three apprenticeship, and then I worked for a firm for two years. Because the work was subcontracted, I was already registered with HM Revenue & Customs [HMRC] as self-employed before striking out on my own.

"To register, I had to give HMRC my name, address, date of birth, nature of my work, start date and National Insurance number. Afterwards I went to the local tax office to give them proof of my identity.

"It's dead easy to start up as a sole trader, plus, you can start work straight away - unless you need to apply for a licence.

Getting started

"I became a sole trader rather than setting up a limited company because it's easier, cheaper and there's less admin to do. Plus, my personal financial liability was limited, so I didn't need the protection being a limited company grants.

"Even as a sole trader, I could take on staff. Sometimes I asked other self-employed tradesmen to help out, if a job was too big for me.

"I had some inheritance money, so I used that for initial advertising and to buy insurance, a van and some tools. I had to get public liability insurance, but I also took out accident insurance, which covered me if I had to take time off. Obviously, I had to insure my van, too..

Sole trader responsibilities

"As a sole trader, you're personally responsible for debts if your business goes under. You need to keep a constant stream of work coming in and put money aside as back-up in case the work dries up.

"You need to keep records of jobs you work on and how much you've been paid, which is vital when it's time to work out how much tax you own. You should keep records as you go along, as well as retaining sales receipts as proof of all purchases the business makes.

"I paid an accountant to fill in my self-assessment form. I didn't have the time or knowledge to fill it in myself. I could then concentrate on what I'm good at - plastering.

Adverts and online marketing

"I advertised in directories such as the Yellow Pages and Thomson. You pay a fee for the year and they sort out the ad for you. The biggest mistake I made was spending too much on a big advert in the Yellow Pages. Having smaller adverts in more directories and sending out leaflets locally would have been more effective.

"Most of my business comes from word-of-mouth. I started out doing jobs for friends of the family, they then recommended me to people they knew, and the work has just grown from there. "

Andy's three key lessons

  • Consider all your options when deciding which form of business to set up.
  • If your personal financial liability is small, becoming a sole trader is easier and cheaper than setting up a limited company.
  • Put money away as you go along, then you won't have to panic when you get your tax bill.

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