New business ideas are springing up constantly nowadays. However, when starting a business, whether you’ve been part of a start-up previously or not, you often overlook the important factors when it comes to setting up an office.
From health and safety rules and regulations, to licenses, it’s crucial that you cover all the necessary points if you want to set up your own business. From wiring your business up with an electric connection, to ensuring that you have the correct insurance policy, there’s a lot to cover when you’re just starting out.
Take a look through this guide to some of the important standards to consider before you get started:
Electricity
Moving your company into a brand-new office can be a daunting task, and the process will most likely require an extensive checklist before your team can settle down at their new desks! Modern businesses tend to rely heavily upon technology, so guaranteeing electricity will be fundamental. If you’re not sure how to get your connection sorted, contact your distribution network operator (DNO) and tell them what you require. Without doing this, your business simply won’t get up and running.
Licensing
Covering all of the relevant legalities is an essential for any new business. It may not be the most fun of tasks but failing to gain a common license and permit – especially for homebased small businesses – can cause major issues. Be sure to contact your city’s business license department as soon as possible and get the ball rolling to make sure you’re legally allowed to trade from your location.
Serving food or alcohol is a definite sign that you’ll need a license. But what about where you store your data? Do you know what software package you’ll be using and whether it is the licensed version? It may be a significant cost to purchase the programmes but using licensed software really does pay off in the long run.
Insurance
While not all insurance policies are mandatory, one you certainly can’t do without is employers’ liability insurance. Failure to do so can lead to a fine of up to £2,500 per employee per day without it. You must also take out property insurance so that your equipment, inventory and signage is covered for fire, storm or theft. If you are starting your business in your own home, you still require insurance as your homeowner’s policies won’t cover your business requirements.
If you’re going to be using a vehicle to get around as part of your business, it’ll need specific insurance. While we know that car insurance is important, if your company is going to have their own fleet, it’s essential that those vehicles are insured to protect your business against liability if there’s an accident. Business interruption insurance can help you in the event of a disaster which would interrupt your operations. In these circumstances, having the correct plan in place will help you to avoid major financial loss.
Taxes
Taxes will be applicable whether you operate out of an office or retail unit, so factor these into your initial plans. Business rates are like a council tax but for business properties and some premises are exempt from these rates. If you are running your business from home, it’s unlikely you’d have to pay business rates as well as your council tax, unless you are employing staff to work in your home or potential customers will be visiting your location. Also, if you’ve adapted your home space, including your garage, then you’ll need to pay business rates too.
For any limited company that makes a profit, corporation tax will need to be paid. It is set at 19% for all companies and you must pay it within nine months and one day of the company’s accounting year end. If you’re a sole trader, however, you won’t pay corporation tax.
No business is exempt from those initial teething issues, but by planning and accounting for these standards, you’re more likely to enjoy a seamless start-up. Good luck!