Starting and Growing a Profitable Business
Starting a new business is an exciting and yet frightening proposition. It can be rewarding and invigorating, but not without its challenges. People start their own businesses for a variety of reasons; to be their own boss, to follow their passion and use their skills, to have more control over the way they live and work.
It is a simple fact that the survival rate for start-ups is low. However many new businesses do survive and with support and guidance thrive.
According to Figures obtained from the Department for Business, Innovation & Skills there were 5.5 million businesses in the UK. Over 99% of businesses are classified as Small or Medium Sized enterprises (SMEs, employing 0-249 people), of these 5.3 million (96%) were micro-businesses (employing just 0-9 people).
The figures state that microbusinesses accounted for 32% of employment and 19% of turnover. The number of sole trader/self-employed businesses increased by 84,000, with annual growth being around +3%. Small businesses accounted for 99.3% of all private sector businesses at the start of 2016 and 99.9% were small or medium-sized (SMEs). The combined annual turnover of SMEs was £1.8 trillion, 47% of all private sector turnover in the UK.
Starting a new business in now more accessible and affordable than ever before. Technology is changing fast giving more choice in where businesses are located, how they are marketed, how customers can be reached and how they trade. Start-up costs are lower and there are more opportunities to attract flexible finance.
First Steps
What makes for the “perfect” business owner? Well there is no “perfect” set of skills but some qualities are certainly advantageous.
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Self-starter
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Determination
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Initiative
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Positive outlook
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Self confidence
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Organisation skills and attention to detail
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Patience
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Flexible attitude
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Decision maker
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Risk taker
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Perseverance
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Financial planning
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Communicator
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Problem solver
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Drive and ambition
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The list could go on but ultimately you will need to thrive on the challenge.
Core Business Skills
In addition, as with all jobs, there are core business skills required for the day to day activities. Running a business is demanding and no matter the size there are certain skills you will need to manage your business effectively. These are sales and marketing, operations and administration, financial management and general business management. Remember not all business skills are necessarily acquired in business.
Building your Network
One of the challenges of running your own business is the remoteness. Making decisions alone without backup or someone to bat ideas off. Building a solid support network can be crucial to your success. Alongside your personal support network, a formal network of support can include professional organisations, such as CSFS, business advisers and other networking groups.
The “Small Business Division" of The Chartered Society of Forensic Sciences has been created to offer a forum that will provide a place for scientists, practitioners and professional service providers working within the forensic field and the CJS to network, collaborate, and obtain advice and guidance on obtaining and maintaining quality standards. The aim is that the focus of the Division will specifically support those working in niche areas within forensics and those working as Sole Traders (ST) and/or in Micro or Small or Medium Sized Businesses (SME) in the sector.
Finance
All new businesses need finance. Setting up a business can entail costs. These could include initial capital expenses, monthly bills, staff and marketing budgets amongst others. Getting the finances right from the start can be key to the success of a business. Be realistic and cautious and plan for the “unexpected”.
Your Legal Status
When starting a new business there are a number of legal considerations. First you must define your legal status, this decision will affect your tax liabilities, the records and accounts you must keep, your management decisions and your personal financial liability.
There are a number of options open to you:
Sole Trader – is essentially self-employed and does not require business registration. Record and account keeping is very straight forward. Sole traders are personally liable for any debts accrued to the business. www.gov.uk/set-up-sole-trader
Partnership – when two or more people own a business together, sharing the costs and liabilities. The partnership does not have to be an equal share and any liability is proportionate. www.gov.uk/set-up-business-partnership
A Limited Liability Partnership (LLP) alleviates some of the personal liabilities of a standard partnership as the LLP is responsible for any business debts. www.gov.uk/guidance/set-up-and-run-a-limited-liability-partnership-llp
Limited Company - the business is a separate legal entity with its own financial liabilities. All limited companies must be registered with Companies House. Limited companies must follow strict requirements on registration, record keeping and submission of company accounts and annual returns to Companies House. www.gov.uk/government/organisations/companies-house
There are tax implications for whichever form of business entity is established. All relevant information is available from HM Revenue & Customs www.hmrc.gov.uk
Insurance
All businesses require insurance in some form. The type of insurance required will depend on the business activities and set up. Some insurance requirements will be a legal obligation.
Employer’s liability – for business with employees. This insurance protects the business against employee claims for injury of illness suffered as a result of their employment.
Professional Indemnity – this insurance protects the business against legal liability for losses suffered by your by customers as a result of your mistake or negligence.
Through partnership with Jelf Insurance professional members of CSFS have access to an exclusive insurance scheme. www.insurance-partnership.com/schemes/services/the-chartered-society-of-forensic-sciences-insurance-scheme
Other requirements
Depending on the nature of the business there may be other legal guidelines and regulations you must adhere to.
Specific to the forensic science sector these will include:
Forensic Science Regulator’s Code of Conduct www.gov.uk/government/collections/forensic-science-providers-codes-of-practice-and-conduct
The Criminal Procedure rules www.justice.gov.uk/courts/procedure-rules/criminal
Become Involved
The CSFS Small Business Division is here to support the STs and SMEs within the forensic sector. The Small Business Division committee is made up of small business owners working in the field. Details of the members can be found on the CSFS website www.csofs.org/Small-Business-Division.
If you are a Sole Trader or are part of a Small/Medium sized organisation and would like to become involved with the division please email Nicola.schumacher@csofs.org.