There is a new revolution in the way people can pay for items and services using their phones and...
Resource guide: A guide for start-ups
So you’ve got a world-beating idea for a brand-new product or a clever new take on an existing service and you’re planning to launch a start-up to bring your vision to life? Even the most promising start-ups need a certain amount of structure and services to get them off the ground. But when you’re just starting out it can be difficult to know where to start.
Here, Interbacs outlines some useful considerations for fledgling start-ups, including how Direct Debit payment solutions can give you a guaranteed monthly income.
What makes you a start-up business?
At its most basic, a start-up is a new and emerging enterprise. Businesses with fewer than five years of trading are typically considered start-ups. However, there is slightly more to it than just the ‘newness’ of a business. In fact, there are several subtle nuances that separate a start-up from a run-of-the-mill new business.
Whereas regular businesses may replicate what’s already out there in the market, like an estate agents or restaurant, start-ups generally aim to disrupt a particular sector with either an original new product or service, or at the very least an innovative twist on an existing one. So start-ups are usually ‘disruptors’.
Start-ups are generally lean operations, founded by one or a handful of entrepreneurs that may self-fund or seek capital investment to bring their idea to market. Start-ups typically thrive in a fast-paced environment, with decision-making, innovations, and growth all likely to occur at pace.
What things you need to consider for your company
There are various factors that any new start-up should consider in the lead up to launch.
Firstly, the location of the business. Will it be a wholly online business, as has been the money the case for many emerging new businesses during the pandemic? Or will a brick-and-mortar office or storefront be required? Ultimately, this decision will be governed by the type of product or service being offered.
Then there is the legal structure of the company to consider. If the founder of the business is the only employee, it can make sense to launch as a sole trader. Or if there are several founders involved, it might be worth forming a partnership. For reduced liability, creating a limited company can be a good way to go.
Funding will also be a key consideration. Whether it be self-funding, credit, crowdfunding or a cash injection from venture capitalists (depending on how promising your business proposition is), setup fees will need to be covered at the outset. Thereafter, the goal will be to return a profit as quickly as possible.
What services you'll be looking for and why
There are various services that start-ups will need to consider. Here are just some ideas to get you started, as well as an explanation as to why they can be of help to you.
A good accountant can be worth their weight in gold when it comes to filing your tax return. While it is entirely possible to balance the books yourself, an accountant can ultimately save you time and money.
Regardless of where you trade from, whether it be a physical office or from home, you’ll need to communicate with customers and suppliers. A phone line and broadband connection are therefore vital.
Every new business needs a brand identity, including a logo. Low-cost options, like a crowdsourced logo from DesignCrowd, are available but discussing your ideas with a graphic designer can be more beneficial.
Your website is your virtual shop window. There are various DIY options (such as Wix and Squarespace) if you have the time and patience. Otherwise, finding a skilled web designer can be a worthy investment.
If your start-up relies on selling directly to consumers, you’ll need to take payments. That could be in-person using a terminal like Square’s or setting up regular Direct Debits for a guaranteed monthly income.
How Interbacs can help along the way
At Interbacs, we offer a range of effective payment solutions that scale as your start-up scales. Our Bacs accredited Direct Debit Facilities Management service is ideal for start-ups that don’t have a Bacs Service User Number (SUN). You gain access to the benefits of Direct Debits, including your business name appearing on customer statements, without the administrative and financial burden of managing Bacs payments in-house.
Then you have our Direct Debit Management System (DDMS), which makes it easy to edit, cancel and create new Direct Debits. This powerful Direct Debit management software is a full Direct Debit suite that reduces manual tasks with fully automated payment services. With three tiers of InterPay BACSTEL-IP Software available, fledgling start-ups can benefit from our simple and streamlined InterPay Lite software, which provides a lightweight and inexpensive payment management solution on a single user per subscription basis.
Interbacs’ DDMS Online Signup includes customer sign-up modules to suit various business needs, including fully compliant customer-facing secure Direct Debit sign-up websites. The built-in Modulus checking facility verifies sort codes and account numbers at the point of sale. Plus, your portal can be fully branded with your company’s logo and brand colours for customer reassurance. We can streamline your Direct Debit processes and ensure you comply with stringent Bacs rules.
Our online sign up software comes with built-in KYC so you can identify your customers and verify their bank details as you sign them up. In a world that's more and more concerned about online fraud, it's good to verify who is paying you and, more importantly, verifying who you are paying are who they say they are!
Payroll services for start-ups
When you’re a start-up business, while you do need to consider how to receive money from people, you do need to think about paying money out too!
Not to worry, we are on hand with our payroll outsourcing services. Our Interpay software also gives you the facility to pay your suppliers and expenses. You can even pay your staff by processing your payroll files through it.
Contact Interbacs today
If you’re in the process of launching a start-up, save yourself valuable time and money while growing your business with reliable, professional, and innovative payment solutions from Interbacs. For more information about any of our products or services as a direct debit company, please contact us.