More people than ever before are starting their own business. 2015 saw a record number of small businesses operating in the UK – 5.2 million in total. There’s nothing quite like the freedom of owning your own business, but it’s not easy when you’re just getting started. A lot of new business owners struggle in the beginning, as there’s so much paperwork and research required. This article outlines three important documents that you’ll need in order to start and run a profitable business.
Insurance
Insurance is perhaps the most important thing to arrange before starting a construction company. There are many different types of insurance in the United Kingdom. A construction business needs need public liability insurance, and employers’ liability insurance if you employ staff. Although public liability insurance is not a legal requirement, it should be regarded as essential. Something as simple as a customer tripping over a hammer and hurting themselves could result in an accident claim – and without insurance, you could end up facing hefty fines and legal battles.
Business Plan
A business plan is vital for a number of reasons. First of all, it’s a document you’ll find yourself constantly referring to as it contains key statistics, such as forecasted sales and company turnover. Second, if you’re looking to raise finance, all potential investors will ask to see your business plan before agreeing to fund you. Your business plan should also identify potential risks that could result in cash flow problems. 25% of small trade businesses say they would go bankrupt if they were faced with an unexpected expense so if your business is going to succeed, it’s important that you review these risks on a regular basis.
Legal Documents
If you plan on registering your company, you’ll need to fill out a number of legal documents beforehand and submit them to Companies House. This article outlines what’s required. In addition to this, you’ll need to appoint at least one company director – this will most likely be you, and you can have additional directors as you see fit. The company directors are legally responsible for the entire company, so if you appoint others to this position, choose carefully!
Final Thoughts
There are a wide variety of resources that people can use in order to get help with starting their business. Having insurance and legal information is vital, as they protect the business against unforeseen events. A business plan can pinpoint sales and forecasted revenue, and is necessary in securing finance from lenders. These three documents are crucial when it comes to guaranteeing the survival of the company.