29 July 2013

Vital advice for new businesses in Wales

Cardiff by Elio Assuncao
Building a new business in Wales

There has never been a better time to establish a new business in Wales. The government has invested millions of pounds in recent years, in an effort to encourage new businesses set up in the country. Fantastic links to the rest of the UK and overseas markets ensure that business ties can be formed and maintained. In addition, the growth of social networking has seen massive improvements to the ways businesses keep in touch with suppliers and customers. Property is particularly competitively priced, making Wales the ideal location for new premises.

Before establishing any new business, however, it is important to first have a good idea, one that can be developed and become profitable over time. Carrying out market research is essential, ensuring there is actually a demand for a particular product or service; a business plan must also be produced. This plan will cover everything, from budget and projected finances, to marketing and yearly development. A prospective investor will expect to see a comprehensive plan before deciding whether to part with their money. A business plan is also an essential part of helping its owners monitor its progress.

Umbrella Companies

There are a number of companies on hand to offer assistance to start-up businesses, including banks, investors and government funded schemes. However, many new business owners are not aware of the help they can enlist for the general running of their venture. An umbrella company is there to assist with administration solutions, including invoicing, payroll and tax. It can also ensure that the business is operating in full compliance with government legislation and make certain that the correct insurance and licenses are in place.

Umbrella companies can significantly reduce administration costs and are also there to handle customers and agencies, such as HMRC, directly. Business owners effectively become employees of the umbrella company, giving them more time to focus on the important day-to-day running and development of their enterprise. Advice is available on claimable expenses; ensuring businesses make the maximum profit while remaining completely legal.

Problems facing start-up businesses

While growing a new business can be extremely rewarding and exciting, there are a number of pitfalls that prospective entrepreneurs may not always consider before starting out. Setting up a new business is time consuming and takes a great deal of effort and responsibility; frequently, the success and failure of a new venture rest solely with one person or a small group of partners. It is therefore important not to take decisions lightly.

Competing with similar businesses and established brands can be intimidating. While conducting market research, it is vital for new business owners to establish their market, explore the competition and identify any gaps they can fill with their products or services. New business owners must also be realistic when projecting figures for their new venture. Underestimating costs or overestimating profits can be costly mistakes.

In the current economic climate growing a new business can be arduous and slow. It will not always flourish straight away and it is important not to expect too much from the first few months or even years. Business owners must maintain realistic expectations and remain focused; with time and patience, they will begin to see their business plans come to fruition.

Author: Aimee Claire

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