So, you’re going to set up your aesthetic business – hooray!
Deciding to start an aesthetic business is exciting, hooray! but it can also be a bit overwhelming.
There’s quite a few things to consider at the start, plan and organise and it can get a bit confusing especially if you have never done anything like this before.
In this blog we’re going to provide you with information on setting up your business in easy to understand language.
While every business is different, think of these as the core building blocks of setting up.
Step 1: Choosing a Business Structure
Before anything, you’ll need to decide what type of business you are creating. Here’s the main 3 to choose from
SOLE TRADER
This is how most people will set up their own business. If you’re planning on setting up yourself, this may be the best option for you! In this scenario, you keep all of the profit (after tax), however, you are responsible for business debt.
PARTNERSHIP
Partnerships are companies ran and shared by more than one person. In this case, the 2 + people who own the partnership and share responsibilities for the business.
LIMITED COMPANIES
Unlike Sole Trader and Partnerships, who are responsible for the company debt, Limited Companies’ finances are completely separate from the person setting them up. However, they are responsible for paying corporate tax.
Step 2: Get Your Business Registered
Every business needs to register with HMRC. Other registration will depend on your business model.
Let’s take a look at some key points for registering each business type.
A Sole Trader Must…
- Register for Self Assessment taxation ( hop onto the HMRC Website) )
- File a tax return every year
- Keep records to keep things accurate
- Pay income tax on profits
- Register for VAT if your turnover exceeds £85,000
A Partnership Must…
- Select a name and a nominated partner
- Have their nominated partner manage tax returns and record keeping
- Register with HMRC
- Send tax returns every year
- Register for VAT if your turnover exceeds £85,000
A Limited Company Must…
- Register with Companies House (this costs £12)
- Register for corporation tax
- Have a company name, address, details of one director, shareholder information and identify anyone with significant control when doing so
- Prepare documents explaining how the company will run
- Check what records need to be keep based on the business
If this all seems like a lot to take in, you can take great business courses for free at Business Gateway
Step 3: Creating Your Budget and Business Plan
Get your notepad at the ready, set out all of the things you’re going to need. Work out your budget and what you can afford. Things you need immediately and things you can buy later when the pennies start coming in!
Consider if you need to take out a business loan. If so, you will need to create a business plan, to help persuade potential investors.
A business plan will help you set goals, identify future issues and allow you to gain a better understanding of your competition – incredibly worthwhile either way!
Step 4: A Business Bank Account
You are only required to set up a new business bank account if you are a limited company, however, it can be useful for sole traders and partnerships to keep better track of the finances.
Step 5: Get Bookkeeping
Whether you’re off to a flying start, or a slower one, you need to keep your books from the very beginning.
This means keeping up-to-date financial information on your business. This includes all of your incomes and expenses, invoices, receipts and statements. You can use software for this or you might choose to use a simple excel sheet. You might also choose to use an accountant too depending on the size of your business.
This is the beginning of a very exciting time.
While there is a lot to learn, this can be done in steps, making the journey easier for yourself.
Remember, you can always reach out to us for a chat on what to do and next steps, if you’re thinking about setting up!
Contact Inspired Cosmetic Training on –
Phone: 0141 638 4098
