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Business Information |  |
| General Information on Starting Your Business | |
| Setting up in
practice for the first time isnt always easy. Although
there is a growing wealth of advice and information available,
it is often too technical or not designed for professional practitioners. The information contained within the following links is however, only a guide. We strongly recommend that you use the various services offered by those professional bodies listed in the Useful Contacts page. To the best of our knowledge, all the information provided is current and correct (as date of posting ). Some information we have provided will be subject to change as Laws are continually being modified. Balance healthcare cannot be held responsible for any loss suffered as a result of an inaccuracy or omission in the information provided. The material on these sites is not controlled by balance healthcare and therefore we cannot guarantee their accuracy. Types of businesses Starting a business Money Matters Promoting your business Your Tax Return Useful Contacts |
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| Types of businesses | Back to top of page |
What type of business suits your needs? There are three main different legal types of business organisation: Sole Trader, Partnership, and Limited Company. The first two are general favoured by practitioners starting out. Limited Company status is more suited to larger businesses – such as clinics - that either have several owners, or shareholders. Sole Trader This is the least formal way of establishing a business. A Sole Trader is a person who owns the business, and who employs or hires others as necessary. All of your income as a sole trader, would be treated as personal income – from which business expenses would be deducted to give a profit (which is then subject to tax and NI) In terms of making money, this status may be the most rewarding to you personally if the business goes well. However, if business does not go well, the onus is on you - which means your house and other personal assets could be at risk if the business folds and you are left with unpaid debts. To set up as a sole trader you need to do the following: • Inform your local Tax Office and Contributions Agency (see tax return section) • Obtain advice on whether you need to be VAT registered. • Ensure that your workplace is suitable for its purposes. • Your name on headed paper and other stationery – if it is different to that name under which you are trading. Partnership The advantages of entering a business with a partner are obvious: it means another financial source to help set the business up, and being able to diversify the type and amount of treatments available to your clients. However, the disadvantages of entering a partnership can be worrying – particularly if you fall out with your partner. If the business collapses or gets into debt because of your partner (even if you were not aware of what is going on), you could have unlimited personal liability. For this reason you should have a legal document drawn up by a solicitor, laying down arrangements concerning such things as: • How profits should be spilt • How the workload is split • Who has managerial control of what • What happens if one of the partners should leave, retire or die Useful contact: Business Link Your local Link branch provides business advice and support, on a one-to-one basis. To obtain information on the various services (many of which are free) look up Business Link in the business section of your local telephone directory or call directory enquires. Web link: www.businesslink.org |
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| Starting a business | Back to top of page |
Top tips: 1. Assess your skills. Are you ready to start up on your own and do you have the necessary skills? If not, think about what extra training you might need. 2. Research and write a detailed business plan. Do your homework on the market, rivals, location, staff, customers, laws and what marketing you will need. 3. Potential investors can be found amongst friends and family, through your local business association, a business angel, venture capital or bank. 4. Decide how much you need and for how long. Investors will want to know how much they can make from the deal - so convince them that you know what you are doing and that you are capable of managing your finances effectively. 5. Make sure you know your tax status. You will have to deal with tax, National Insurance and VAT. 6. If you need staff, brush up on your knowledge of employment regulations. You will have to comply with health and safety, discrimination, tax, maternity and working hours laws. 7. Register your chosen business name with Companies House. Be careful not to use the name of another company in the same field, or a name that is confusingly similar. Check telephone directories, business guides and advertisements for possible conflicts. 8. Make sure your business is adequately insured. Get a business insurance package off-the-shelf or one tailored to your company's needs. 9. Any sole trader, Partnership or limited company must keep a record of their business transactions for Value Added Tax (VAT) purposes. If the value of your taxable supplies, in the last 12 months or less, has exceeded the current VAT registration threshold of £56,000, or the value of your taxable supplies in the next 30 days alone is expected to exceed this threshold, then you must register your activities with Customs and Excise VAT unit. Taxable supplies for the practitioner, is the provision of services (consultations), and the supply of products (prescriptions). The total needs to be measured on a rolling twelve month period. |
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| Money Matters | Back to top of page |
Can I use my personal account for my business? If you are a sole trader and already have a personal bank account there is no reason why you can't use it to process your business costs and payments. But if you dealing with a large volume of transactions or have several people working with you it can be very difficult to keep track of your company's finances. Opening a separate business bank account is the simplest way to achieve accountability and transparency for the Inland Revenue, creditors and auditors to accurately assess your business. A business account will also give you credibility as your bank will have, to a degree, assessed and accepted your business proposal. If you want to open a separate business account don't assume your current account provider will offer the best deal. Shop around and compare charges beforehand. Reports into the small business sector have found banks routinely overcharge their customers. The government has said it will impose controls on charges for current accounts, following the publication a report into small business banking from the Competition Commission. As a result, hard-pressed small businesses could win some relief from bank charges. |
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| Promoting your business | Back to top of page |
Few businesses succeed for long relying just on ‘word of mouth’ promotion. For long term success you need to plan ahead so that you don’t miss out on opportunities available. Review your qualifications. Do you need to increase your skills? The more qualifications you have the more services you can offer – the larger your market. For example, Ear Candling (see our external remedies section) is becoming very popular – why not book yourself onto a course? Your customers Ask yourself some fundamental questions: • Who are your clients going to be? (Male/female/young/old/athletic/married with children etc) • Where do they socialise/live/work? • What do they read? Targeting your customers Advertising When you have answered the questions about your client group, you will notice that some publications are more suitable than others to your particular group. For example, there would be no point in advertising on the internet if your client group are unlikely to use, or even own a PC. It is hard to know where to start ,when it comes to deciding on placing advertisements for your business. Ask yourself - if you were looking for a business like yours - where would you start looking? Here are our suggestions:• Yellow pages or on www.yell.com - remember your advert will last for a year • Local newspapers • Postcard adverts in shop windows that regularly carry adverts (like newsagents) • Local free magazines It is often more cost-effective to advertise on a regular basis (i.e. every month for 6 months). Sometimes it is possible to achieve a discount for a long-term booking. Don’t spend too much too soon. Try out a couple of adverts and see what response you get. Always ask your clients where they heard of you. Over time you will learn what advertising works best for you. Membership of a professional body Being accredited to a professional body can result in a real competitive advantage for you. Potential customers value professionalism. Leaflets and posters Where possible, use the same logo on each of your adverts, leaflets, posters and business cards. People will very often recognise a symbol, even if they can’t remember a name. First impressions last – make sure your get someone else to check your work for spelling and grammar and overall impression. Also check your contact details very carefully - many people have gone to print with the wrong phone number! Work out how many leaflets or posters you need. For example, you may want to place them in specially selected areas (such as fitness centres). Visit our Professional Tools section on our website, click on Patient Tools and you will find some ready-made promotional tools for you to start using straight away! Talks and Demonstrations Once you know your clients you can offer to give a free talk/demonstration where they frequent (for example, ‘Reducing Stress through Acupuncture’ at a leisure centre or local group). This can be a very good way of gaining those all-important first clients. Why not use our Patient Tools leaflets as handouts - with your contact details on the back? Competition Be aware of local competition. You need to know how many other practitioners and clinics are offering the same services as you and how successful they are. The best way of finding out your competition does is visiting them for an appointment as a ‘normal customer’! This way you can borrow some good ideas and note down things to avoid. Guaranteeing a return visit You also need to promote your business from within. Take a look at your treatment room – is it inviting, comfortable and clean? Make sure you contact your clients a few days after treatment to ensure they were happy with their experience. Keep an up-to-date list of your clients. Send them occasional mail-shots, giving them details of new treatments or special offers you are running. |
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| Your Tax Return | Back to top of page |
Avoiding Tax problems top tips: 1. Keep all receipts relating to your spending and income until you compile your tax return at the end of the year. 2. Remember to get hold of a tax return in good time. If you get your return back by the end of September, the Revenue will calculate your tax bill for you. 3. At the very latest, don't forget to get your return in by the end of January together with any tax payment due, as failure will cost you an automatic £100 penalty plus interest. 4. It is your responsibility to fill in the tax return, so if you think you should fill one in make sure you ask the Revenue to send you a form (if they haven't done so already). 5. You should declare all income in your tax return. Remember that employers also send their records to the taxman and these are cross-checked for discrepancies. 6. If you have a question about your tax affairs, ask your local tax office. Details can be found in the telephone director or via the Inland Revenue's website. 7. If the Revenue wants to inquire into your return, it will write and tell you what questions it has. It will give you several weeks to reply. Do not ignore any letters you are sent. 8. If your tax affairs are complicated, you may find it useful to hire a qualified tax adviser or accountant who specialises in dealing with returns. 9. Tax avoidance is the legitimate use of tax loopholes and legislation to avoid having to pay tax. Your adviser may employ these tactics to minimise your tax bill. 10. The Revenue is unlikely to prosecute anyone who tries to declare all their untaxed income, but fines or surcharges could be levied on top of a tax bill if you do not submit a correct tax return by the deadline for the tax year concerned. |
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| Where can I find
an accountant to do my books? The best way to choose an accountant is by recommendation from your business friends and contacts. If you can't find anyone to offer some advice, you can contact one of the UK's accountancy organisations. They can put you in touch with local members. Try the Association of Chartered Certified Accountants or the Institute of Chartered Accountants in England & Wales. Members of the Chartered Institute of Management Accountancy most often work in companies, but some work for accountancy firms and others are set up in private practice. Members of the Chartered Institute of Public Finance and Accountancy mostly work in the public sector. All these organisations' members are fully qualified and if you are unhappy with their service you will be able to complain to their relevant professional body. Remember, you don't have to employ the first accountant you see - shop around until you find someone you feel happy with and who understands your business needs. Useful Contacts Employers`/Self Employed HelplineA government run initiative, offering advice for employers and the self-employed concerning tax, National Insurance, and VAT contributions. Calls charged at local rate. Call: 08457 143143. Inland Revenue For answers to your Tax and National Insurance queries, contact your local Inland Revenue Office. Web link: www.inlandrevenue.gov.uk/home.htm |
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| Useful Contacts | Back to top of page |
Business Link Your local Link branch provides business advice and support, on a one-to-one basis. They offer Personal Business Advisors, and very reasonably priced short courses for people starting up or taking over a small business. To obtain information on the various services (many of which are free) look up Business Link in the business section of your local telephone directory or call directory enquires. Web link: www.businesslink.org Citizens Advice Bureau (CAB) Free and confidential advice and guidance on literally any issue,. Your nearest CAB office will be listed in the business section of your local telephone directory or call directory enquires. Web link: www.nacab.org.uk Chambers of Commerce For a small annual subscription, it is possible to be a member of your Local Chamber of Commerce, where valuable business advice is readily available. Membership allows you to keep up-to-date with the latest legislation affecting your particular line of work. To find our details of your nearest office call: 0247 669 4484. Web link: www.britishchambers.org.uk Department of Trade and Industry (DTI) DTI produce a range of free publications that are designed specifically for starting a business. To order any booklets call: 0870 150 2500. Web link : www.dti.gov.uk Employers`/Self Employed Helpline A government run initiative, offering advice for employers and the self-employed concerning tax, National Insurance, and VAT contributions. Calls charged at local rate. Call: 08457 143143. Inland Revenue For answers to your Tax and National Insurance queries, contact your local Inland Revenue Office. Web link: www.inlandrevenue.gov.uk/home.htm |
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