If you are considering forming a company in the United Kingdom, as anywhere, you are in for an exciting but difficult ride. It is paramount that you account for all possible costs involved. The list below will help you with organizing a more detailed financial outlook.
Business Registration / Licensing – Initially, to set up a business in the U.K, you need to register the company name with Company House. The registration process requires forms and documents to be submitted and a one-off fee of either £20 or £50 for a same-day registration service. Any licenses or certifications need to also be considered if they are required for the products or services you are supplying.
Tangible And Intangible Items – It is also very important to consider exactly how much it will cost you to physically set up your company. Will you be trading solely online, or within a bricks and mortar type shop in a high street? With an online shop or service, you need to find out the costs of things such as computers, printers, web-domain/server registration costs, stock and web design. Concerning a ‘bricks and mortar’ shop, there are many more costs involved; these costs will range from shop fitting, telephone/internet service set-up, safety features such as fire extinguishers and CCTV, stock, cash registers, and lighting.
Overheads – Depending on the type of business you will be forming, overheads will play a major role in the amount of profit that you can possibly make trading. You must bear in mind, and include in predicted accounts, the costs of electrical use, water, internet and telephone bills, and, of course, rent or mortgage (unless you purchase the real estate in which you trade).
Marketing – Whilst many business spend a huge amount of money of fitting out their first shop or setting up a brilliantly crafted website, some fail to realize the value of good advertising. If customers do not know you exist, how can they purchase from you? Set aside a good proportion of your start-up capital for marketing and using market research, find out the most suitable and cost-effective form of advertising applicable to your business.
Don’t forget to also account for legal and accountancy costs, staff salaries and merchant banking costs associated with customers paying via credit cards. Within the United Kingdom, a lot of start-up businesses are also eligible for government grants which, although may not be substantial, can help you through the first few, difficult months of trading.
Learn More : Company Formation