Accounting For New Businesses

Starting a business is an invigorating experience. Taking a new idea and converting it into viable business proposition is exciting as well as demanding. Working out a marketing strategy and selling to the first potential customers contains enough highs and lows to fill your experience bank for a decade. If it wasn't exciting and challenging we wouldn't be doing it would we? And especially in the early days when we're often working long hours for next to nothing.

Probably the only thought we give to money at first is the amount we hope to make! Yet it's that lack of attention to the detail of the business finances that trips up so many entrepreneurs. If money isn't controlled, measured and accounted for accurately then even - maybe especially - growing businesses hit the cash flow buffers long before they reach the point of being profitable. So, if you don't take care over the boring financials and find a good accountant to help you, then your dreams may end up accounting (pun intended) for nothing.

So make sure you think about how to keep your financial records before you start. Ask for advice and set up a system that works in your business, both to enable the VAT returns and annual accounts to be prepared as well as to ensure you can keep a check on the numbers - who owes you money, who needs paying and how much profit you are making. It's almost always a mistake to leave this until the business has been trading for a while. We are talking about ensuring that crucial information is regularly available so why not have it from the start, particularly as it will cost you more to sort out the mess later on.

If the business is small and likely to remain so then you may be able to run it on a spreadsheet. But beware of just creating one yourself. Any accountant will tell you horror stories of spreadsheets that have been deeply flawed and often dangerously so. If you are going to use a spreadsheet then make sure it has been thoroughly tested and accurate in what it reports. If it's just a list of entries with no categorization then it will be of limited or no value.

Accounting packages come in all sizes and cost but they all tend to do the same thing. In the end they have to be easy to use (or you won't) and easily readable by whoever is completing your accounts. Make sure you test it properly before you purchase and get a professional viewpoint on its suitability for your business. There are plenty of good online packages too which are worth checking out.

Good, professional tax and accounting advice at the start of the business ought to be able to save you money initially and set you on the right course with effective systems to provide you with the information you need to know exactly where your business is and to plan where it is going. Find a recommendation, check out different people... but get an accountant! It is a distinct advantage if they speak a comprehensible version of English not just an obscure accounting language. They ought to be keen to suggest solutions not just raise problems and they must be interested in understanding your business.

So enjoy starting your new business, but make sure you are clear about how to count the numbers before you start.

Ian Marlow runs HFM, a tax and accounting business based in London serving clients both resident in and outside the UK. They regularly advise clients starting a new business or advising existing businesses on incorporation.

New Business Website Help

Congratulations! You've started your new business and now you're ready to have your new website built. It's an important step in your business success. Naturally, as this may be new territory for you - you have some questions. We're here to help you!

Whether you've decided you'd like an online business card or catalogue, or you'd like to open an online store (Ecommerce website) - it'll help if you understand the basics of the Internet and websites and how it all works.

Once you understand the basics, it's not complicated at all. For simplicity, I like to use the analogy of your home to describe how websites work:

* Website: A website is your "home" on the Internet.

* URL: A URL is your "address" on the Internet, and it includes your Domain Name.

* Hosting: Hosting is your "rent" for being on the Internet.

Where to start?

First you'll need a domain name. What is a domain name? Your domain name, or URL, is your "address" on the Internet, with your website being your "home". Take your time in selecting a domain name, as it will be a reflection of your company and its offerings, as well as instrumental in directing people to your website.

Next up, you'll need to find hosting. Many web design firms are now offering hosting in addition to website design and you may be able to find a designer that can help you with all four of your requirements:

1. Domain Name

2. Hosting

3. Website Design

4. Website Maintenance

Finally, you'll need to work on your website layout in order to communicate with your web designer what you'll require for your website. We've listed the basics for you:

Decide what type of website you'd like to have:

* Brochure: A website that showcases your products or services with images and descriptions.

* Educational: A website for people to read information about your company or services.

* Ecommerce: A website where you can sell your products or services directly online.

Once you've decided what type of website you'd like, you will need to figure out what features you'd like your website to have:

* Will you have members sign up for use of your site?

* Will your members require a special area to sign in before viewing their members area?

* Will you require video or audio uploads?

* Will you require a CMS (Content Management System) to enable you to make changes or updates to your websites?

* Will you require a custom contact form for your site? (i.e. online application)

* Will you require a photo gallery?

* If you require an online store, how many products will you be selling?

Now that you've planned what type of site you'd like to have and what features your site will require, choosing a specific look and design options for your site is the next step:

* Do you have a company logo? Would you like your site to match your logo colors/style?

* If you don't have a company logo, what color scheme would you like to have in your website?

* What style (if any) would you like your website? (i.e. classic, professional, high tech, whimsical, Web 2.0)

* Would you like a flash intro or some other flash element on your website?

Next you'll need to plan the structure of your website and how you would like your website to be viewed. Most websites contain main Menu items and individual Pages under those menus.

* How many Menu items would you like to have? (i.e. "Home", "Company", "Products"...)

* How many pages under the individual Menus would you like to have? (i.e. "About Us", "Mission Statement"...)

* Do you have images you'd like placed on the pages?

Now that you have your basic information you can communicate clearly with a web designer in order to begin creating your business website.

Other important aspects of your website that should not be overlooked are your website keywords, meta tags, page descriptions and analytics. Make sure that you choose a designer that will help you to market your site using SEO (Search Engine Optimization) so that you don't have to spend a bundle on an AdWords or PPC (Pay Per Click) campaign.

We created a form on our site if you'd like to download it that includes the basic information covered in this article. For our potential customers, we also have the form located online for you to fill out. We also have additional information for small business planning in our Articles section of our website.

Best of luck to you in your new business and in building your business website!

Joanne Pele is the Vice President of Operations at Complete Business Systems. Complete Business Systems provides a ready-to-go branding package for your company, including website, logo, business cards and letterhead. Additional services include postcard design, databases, press release and web content writing.

Tips for New Business Owners

1. Plan. Plan. Plan. There is a reason why experts and loan professionals suggest writing a business plan and a marketing plan before starting a business. With a plan you can adequately prepare ways to reduce risk. It will also give you a true indication of a particular market condition, competition and other options available to you. Doing your research early on will save you tons of money later. New Business Owners and old alike must always plan. With a plan you will be 1000% more successful. If you don't know what you need to do each day or what you need in your plan, ask someone. Don't be afraid to ask someone for their help. We all have had to learn from someone else either through interviews, books or by watching them. Most people don't mind you asking for their expert advice and are often flattered to be asked for their expertise.

2. Get clear about what it is you want from your business and then set goals to achieve that. Don't just say you want to make a lot of money. Write down how much you want to make and by when. Also write down what it is you are going to have to do to get there. It is important to know why it is important at this point in your life that you want to start a business. Trust me on some days you will need to have this reason at the forefront of your mind just to keep it together.

3. Hire a coach or mentor. Get someone who has already accomplished what you want to accomplish to teach you. Who wouldn't want to save 10, 15 or even 20 years of mistakes and challenges by just hiring someone who can help with the process not to mention all of the money you stand to gain and save by learning from an expert in your field.

4. Decide on a budget. Determine early on how much money you can afford to spend each month. But more importantly you need to know whether or not you can even afford to be in business and how much risk you can take. Remember, it takes money to make money. Be willing to put aside a certain amount of money each month for your business. What can you afford to spend? What are you willing to spend in order to be successful? Some vendors you deal with will you ask you what your budget is.

5. Be willing to speak on your area of expertise and then plan to do it consistently. Speaking puts you in a position of authority and people will think of you first when they need what you offer and also will come to you for advice.

6. Write on your area of expertise. Write articles, books, in journals, newspaper columns, press releases and anything else that will show people you are an expert in your field. The same goes as above your potential client will see you as a celebrity if they see your name in print.

7. Get a website. Every business needs a website. This is vital in today's competitive marketplace. Your market size suddenly grows 10,100, 1000 times larger when you can compete national as well as international. Don't limit yourself. Your competition will have a website. It is no longer a sheer luxury but a necessary component of being in business.

8. Diversify. Don't put all of your eggs in one basket. It is important to cultivate multiple streams of income. It is also a good idea to keep your pipeline full of clients that you can nurture and eventually sell to. There is nothing worse than depending on a handful of clients to pay your mortgage. Not sure what other streams of income are available to you, look to see what your competition is doing. Do they offer additional services, accessories, cross sell? Can you offer an information product with your product or service?

9. Hard Work is required. There is not one business open that doesn't require some serious work and more than you would put in if you worked for someone else. Just because you started a business don't think it will be easy, the work has just begun.

10. Test. Test. Test. It is important to determine where you are getting the most return on your dollar. Remember the 80/20 rule here. Keep a log of where and when you advertise. This is important because you need to know what worked and what didn't. Use some type of code in each advertisement so you'll know where the customer heard about you. Coupons or discounts are great way to keep track of advertisement. This is great for the customer as well.
11. Learn all you can. Never stop learning. When we stop learning we merely exist. Experts are usually the highest paid in their field because they make a concerted effort to learn all they can. Read as much as you can. This will more than likely give you an edge on most of your competition. Most people get comfortable after being in business for a while and stop learning and growing. Attend all the seminars, teleclasses, webinars, trainings, conventions, association meetings you can find in your field. Take notes and apply what you learn immediately. It is equally necessary to learn about other areas particularly latest technology, sales and marketing, administration, human resources, finance/accounting and pricing despite the business you are going in.

Remember consistency and repetition is important to your business success. What sets you apart from someone else is your ability to take action often and quickly.

Shonda Miles is a business consultant and business coach. Gotta Take Action provides informative articles and advice to women-owned businesses who are ready to skyrocket their profits. Learn more about how to catapult your business success by visiting [http://www.gottatakeaction.com] for more information. If you enjoyed this article, join our newsletter Hot Marketing Tips today.

Things Not to Do While Starting a New Business

Starting out on your own is indeed a risky business - most of the time you are not sure that you are doing the smart thing. To help you on your way, here is a list of things that you should avoid while starting a new business.

Think of the new venture as a puzzle that you are putting together. Choosing a location, hiring staff and building a customer base are among the many pieces of the puzzle that you must assemble to build a strong business. Missing out on even a single piece will leave a gaping hole. Risk of failure is high during the initial three years and often, because of a lack of prior understanding of the mistakes to avoid while starting a new business. Not sure what we're talking about? Relax! We've made a list of warning signs that you need to attend to before venturing out on your own.

* No business plan - The first piece in the puzzle is a business plan, without which you will go nowhere. While an idea is necessary to start a new venture, it needs to be thoroughly fleshed out in the form of a business plan to ensure that your enterprise starts off on a sure footing. A business plan forces you to think about your goals - and helps you find answers to questions like "What do I want to accomplish and how am I going to do it?" Remember that if you fail to plan, you are actually planning to fail. While a business plan is essential, remember that it is only a guide to help you through the process; it is not an end in itself. As situations unfold and priorities change, you can always go back to your plan and change it. The planning process is tedious and time-consuming but it will benefit you more than you could imagine.

* Ignoring the internet - In today's digital world, not having a website to promote your business is as good as not having the business at all. A website can be a great marketing tool to spread awareness about your new venture. Ignoring it probably ranks very high on the list of mistakes to avoid while starting a new business. Also acquire an email facility with your website's domain name. This sounds a lot more professional than a free internet mail service.

* Insufficient funding - The US Small Business Administration (SBA) considers inadequate or ill-timed financing to be one of the main reasons why small businesses fail. Effective cash flow management will help get funds into the bank as quickly as possible. Do plenty of research to find the right financing option as there are many choices including angel investors and venture capital firms, commercial banks, SBA assistance, home equity loans, and credit cards.

* Choosing the wrong business structure - The typical structures for a start-up business include sole proprietorships, general partnerships, joint ventures, limited partnerships, limited liability partnerships and others. The decision you make now will have long-term implications, so consult with an accountant and attorney to help you select the form of ownership that is right for your type of business.

* Not making time or effort - There is no quick road to success - it takes long hours, strategic planning and commitment. It takes a huge amount of time and effort to start a business and run it, particularly in the early stages. Be sure that you have what it takes to last the long haul.

* Improper or no research: Well, you have a great idea and want to start a new venture. Now what??? One of the crucial mistakes that a new entrepreneur makes is to believe that he has the best idea ever. While your idea might seem brilliant to you, you have to see if the market is ready for it. Talk to people, read about the market in your area of business and gather as much information as you can before setting out. This will enable you to come up with a clear and focused business plan which is an essential ingredient for a successful venture.

Starting a new business could be a rewarding or thankless experience, depending on how you go about it. The key is to avoid making mistakes and stay focused on the goal.