Monthly Archives: February 2013

Diary of a UK Start Up #2

Pre formation
My first step was to analyse what I enjoy doing and how I can add value.  This is still work in progress, but can be distilled to “providing financial advice & support to entrepreneurs to help them grow their businesses”. This is something that I have been doing most of my career in both a large corporate environment and more recently, also with start-up businesses.  There are 3 main components to my offering:

Advising on the strategic and financial direction, then implementing the selected actions including mergers, acquisitions and integrations
Raising funding (equity, debt and everything in between)
Establishing a robust financial platform to facilitate growth

My business model is very simple and does not require external funding.  Most businesses require a business plan which can stand up to external scrutiny – more about this in a later post.

For me, the next step was to find a client who wanted this service was both able and prepared to pay me.  I could then quickly form my company so long as I understood what was required.   This is a balancing act.  The reasons for waiting included:

Knowing that I needed the company.
Maximising the period until the first corporation tax payment.
Being able to use the Basic PAYE Tools payroll system (there are apparently some technical limitations if a director is not paid from the date of incorporation).

With the benefit of hindsight, it may have been better to have established the company earlier given some of the delays encountered and the challenges of serving the client simultaneously.

Prior to the formation of the company, I kept a record of the expenses I incurred so that I was able to charge them to the company once it was formed (http://www.taxinsider.co.uk/174-Getting_Started_Tax_Relief_for_Pre_Trading_Expenditure.html).

By |February 26th, 2013|Business|0 Comments

Diary of a UK Start-Up #1

Introduction
This series of blog posts details the steps to form my company and has the objective of providing practical guidance to others thinking of establishing their own company in the UK.  I have done this myself but have consulted widely with others along the way.  I have been both surprised and alarmed at different stages of the process and by relaying my experiences hope that you will be better prepared than me.  When you understand what is involved you might have a go yourself or you might feel that the fees of a professional who specialises in this area to be money well spent.  I am interested to hear how others have fared and any suggestions for improvement.

It is worth summarising the reasons for establishing a company.  Once established a company is a separate legal person, it has its own assets and liabilities.  The liability of the owners is limited to the amount of share capital they commit to put in.  This can be very useful for businesses that are seeking to raise capital from investors who will not be actively involved in the management of the company.  It can also help define the relationship with the company’s customers.  This later reason is why I formed a company to provide consulting services – it helps to ensure that I am not treated as an employee of my customers.

By |February 21st, 2013|Business|0 Comments
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