What women in business need

11:42am Tuesday 1st April 2008

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IN CHANCELLOR Alistair Darling's 2008 Budget, plans were outlined to encourage women to launch their own businesses - with the government pledging £12.5 million to support female entrepreneurs.

So before you rush out and decide that now is the time to start out in business on your own, what do you need to do to make sure you go about it in the right way from the outset?

Be clear about your plans and what it is you are going in business to do. Clear and structured objectives will ensure that the decision making will be easier along the way and third party advice can be given in a more structured format, tailored to meet your needs.

Research your market place and know your proposition.

Understand your customer's needs and what your competitors are offering.

Not only will this keep you focused in the early months, but it will also assist in securing any funds needed which will have to be backed up by a robust business plan.

Once you have done this, you need to decide how you will set up in business - self-employed, sole trader, partnership, limited company, limited liability partnership, limited liability company or buy a franchise or existing business which is up for sale.

Taking expert legal advice at this stage is extremely important. For example, setting up and registering a limited company (private or public) needs to be done with expert guidance and a legal adviser should always be consulted.

Setting the business up incorrectly in the first place may come back to haunt you at a later stage should you try and grow your business or merge with another, for instance.

To put your business on a proper footing with HM Revenue & Customs and other authorities, you need to make sure that it has the right legal structure. It's worth thinking carefully about which structure best suits the way that you do business, as this will affect:

• the tax and National Insurance that you pay

• the records and accounts that you have to keep

• your financial liability if the business runs into trouble

• the ways your business can raise money

• the way management decisions are made about the business

It is important you choose the right premises for your venture. Think about how you will use them and who may need to visit. This will help determine not only where geographically they need to be but the size needed, as to set out with you may be able to work from home and keep unnecessary overheads to a minimum.

There are many legal implications to operating from business premises, so take advice and know what you are responsible for.

Talk to your bank manager and accountant, who will work with your legal adviser. Professional bodies are out there to help you and can be a good catalyst to setting up good procedures and business practices from the start.

You will know if you have got the right professionals advising you, as they will be there after the launch to offer guidance as your business develops and grows.

Marc is partner Crombie Wilkinson, York