With over 99% of UK businesses classed as small and medium enterprises (SME), smaller businesses...
Financial tips for start-up SMEs
Entering the world of business with your own idea can be a daunting task, and getting your company off the ground can be even harder. So much work has to go into starting up a small and medium sized business (SME) before it can start to make a profit. If you’re looking for help or guidance to scale up your business, then continue reading our financial tips for start-up SMEs.
What should a start-up SME do first?
There are steps a start-up company should take when looking to scale up and grow their business. The business world is incredibly difficult to crack, but small businesses succeed all the time. In fact, 99% of the UK economy is made up of SME businesses (companies with fewer than 250 employees).
If you’ve recently set up a new business and need some guidance on the steps to take, below are some things to consider.
- Set up your company at Companies House
- Get a good accountant
- Research and understand your market
- Get the tools you need to thrive
Set up your company at Companies House
You should set up your company at Companies House as soon as possible. All limited companies must register with them, and publish details of directors and company information.
It also has its search engine optimisation (SEO) benefits, which helps to improve visibility of your company online, potentially increasing sales or interest in your services.
However, not all small businesses want to become limited companies and might be better off as sole traders, which is something to keep in mind.
Get a good accountant
Managing finances is imperative for any company, but especially a start-up SME. If you mismanage finances at the start, your business is doomed to fail. Lean on the expertise of a good accountant to manage payments - both incoming and outgoing - to give your business a solid base to start from.
Research and understand your market
Whether offering a service or products for sale, you have to research the market you’re entering and find a gap for your business. If there is none, it will be difficult to find a pathway to success.
Get the tools you need to thrive
There are a wide range of tools and software available for a start-up business to use, like free website builders, accounting software, and digital marketing tools. Utilising everything at your disposal can be the difference between a successful business and one that fails.
Financial advice for SMEs
Managing the finances of any business can be tricky if it’s not your speciality. Hiring an accountant is a good way to relieve the stress of controlling money, allowing you to focus on the core of the business.
However, if you’re in a situation where you currently cannot hire an accountant, follow the below steps to ensure the financial security of your SME business.
Think and spend wisely
Think and spend wisely. Assess exactly what you need and track precisely what you spend. For a start-up company, every penny counts and could be the difference between success and failure.
Don’t be afraid to ask for money
Make sure you ask for money for work you’ve done. If you do the work and a good job for a client or company, you need to be paid for your services.
Focus on your customers
Always do a good job for your customers and go the extra mile to provide a unique experience that will have them coming back for more. The success of your business depends massively on your customers and whether or not they return. Providing a first-class service, potentially like offering something for free, or sending gifts for new customers is a smart way to build loyalty.
How Interbacs can help your start-up SME
As a company, if you use Bacs payment software and Direct Debit management software, it puts you in control of your finances, and makes everything easier. It allows you to make payments on your terms, but also allows you to control when you receive funds.
If your customers sign up to your service via Direct Debit, you just have to set them up once on Direct Debit software provided by Interbacs. This makes everything easier for you, as well as your customers, streamlining your finances.
Contact us today to discuss your start-up SME, and to gain more financial support.