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:

  1. Advising on the strategic and financial direction, then implementing the selected actions including mergers, acquisitions and integrations
  2. Raising funding (equity, debt and everything in between)
  3. 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).