Five Practical Business Tips Every Startup Should Know

by Startacus Admin
Tom Trainer BSc FCA, Chartered Accountant and owner of Chartered Accountant Online gives us the lowdown on the basic business tips that every startup should know...
1. Bank Account
This is the simplest tip and the easiest one to put into practice. Get a bank account and a debit or credit card used solely for the business. It doesn’t need to be a business bank account, if you tell the bank it is a business account, they will charge you more for it than if you just tell them it is a personal account. Alternatively, if you have a spare bank account that you do not use, then you can use that one for your business transactions.
If you do this, and put as much of your income and expenditure as possible through this account then, come year end, when it is time to do your tax return, you will automatically have a record of virtually all your business transactions in one place on the bank statements, and it will not be cluttered up with all your personal transactions.
You might think "Well I have all my receipts and invoices. My accountant can get all the information from there". Well:
- What happens if you lose all or some of your records, maybe the dog eats them or they end up down the back of the sofa only to resurface years later. You don't want to be picking through hundreds of transactions on your personal bank statement trying to work out what each was for, and whether it is business or personal. If you put everything through your business bank account, you won't have to.
- Another reason is if HMRC investigates you, and they can investigate anyone, you do not want HMRC going through your personal bank statements: their view is that, if there is some income in your account, and you cannot prove that it's not business income, then it is business income, and they will want to tax it. It could be winnings from a bet, it could be a gift, but if they question it, and you cannot explain it, they could cause you problems.
2. Business Plan
A new business often needs a degree of funding and unless you are lucky enough to have a benefactor, substantial savings or very low set-up costs then you will need to approach a lender of some description which could be a bank, private investor, charity, public body or even crowd funding, and to secure finance you will almost definitely need a good business plan. An accountant can help and not just with drafting the financial forecasting which is essential, but in reviewing the plan, asking challenging questions that a bank or investors are likely to ask, and attend the meeting or presentation with you. When going for finance it is critical that you are well prepared. You won't get a second chance with the same lender.
However, even if finance is not required from a lender a business plan is an excellent tool for a new or young business. It helps collect your thoughts and ideas. It sets out your objectives in writing. It details how you are going to finance the business, as well as expectations for sales, profitability and investment in assets. Drafting a business plan makes you think about issues and parameters you may previously not have considered, such as your marketing strategy and budget. It helps you put in contingency plans, it allows you to set goals and measure and track progress. It is constantly evolving, and should be reviewed and amended as circumstances change. Your accountant is someone who can help you track your business progress against your plan, make suggestions and recommendations. New businesses with a well thought out and monitored business plan are more likely to succeed. You can download business plan templates from the internet quite easily, but if you are unsure which one is best suited to your type of business then it might be preferable to seek advice.
Practical Business Tips Every Start Up Should Know...Continued on Page 2
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
Week Gen-C is a week long calendar of events focused on entrepreneurship and careers, aimed at helping young people affected by the covid pandemic in the North West of NI

Leading startup community, YSYS launch 4 days of innovative online conversations and a range of new initiatives with the core theme of “Access”

Jean Gamester from Toastmasters International shares her tips on bringing back some of that old normal and staying fabulously virtually connected

Planning to launch a fashion brand this year? Here are a few basic tips that will help you do just that and get your business off to the right start

Bippit is an online platform and app that helps companies to support the financial needs of their employees - not just via their salary

2021 may be a challenging time to start a business, but these tips should help you get it right...

Startacus and Hatch Enterprise celebrate International Women’s Day by partnering with NetMinds to bring together female founders for a virtual speed networking event

Keeping customers engaged is vital for any small business - these basic tips will help you do just that

Alchemy Technology Services, the Derry-based centre of excellence for insurance software implementation receives recognition for its commitment to diversity

For the first time ever, the Postcode Lotteries Green Challenge has both a British winner and runner up in the form of innovative startups SoluBlue and Jiva Materials
Published on: 10th August 2014
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.







- Week Gen-C to offer career and entrepreneurship respite to pandemic-hit youth 1st Mar 2021 Week Gen-C is a week long calendar of events focused on entrepreneurship and careers, aimed at helping young people affected by the covid pandemic in the North West of NI
- #YSYSAccessWeek: Building a diverse, inclusive and accessible tech startup ecosystem 28th Feb 2021 Leading startup community, YSYS launch 4 days of innovative online conversations and a range of new initiatives with the core theme of “Access”
- Startacus and Hatch Enterprise offer speed networking IWD-inspired event 24th Feb 2021 Startacus and Hatch Enterprise celebrate International Women’s Day by partnering with NetMinds to bring together female founders for a virtual speed networking event
- Alchemy Technology Services receives Bronze Diversity Mark NI Award 23rd Feb 2021 Alchemy Technology Services, the Derry-based centre of excellence for insurance software implementation receives recognition for its commitment to diversity