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Different Aspects that will affect preparation for Businesses. If a new business does not inform all appropriate government bodies of its existence at an appropriate time then it may suffer because it will not be paying taxes and will even be breaking law

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Introduction

Different Aspects that will affect preparation for Businesses If a new business does not inform all appropriate government bodies of its existence at an appropriate time then it may suffer because it will not be paying taxes and will even be breaking laws by simply existing. You must always register with Companies House before you start your business so you know your business is following all laws appropriately and paying VAT and Corporation Tax fully. You should also always adhere to these laws and regulations because they will help you stay legal and avoid issues that can sometimes result in court. Similarly, a business should always obtain an appropriate license for itself; otherwise it may result in your business not being able to be incorporated. If this is not allowed then you cannot run the business as a legal entity. Finally, make sure that you keep the records required by the government because these are needed by HMRC to track if you have been paying your taxes, not being fraudulent and staying legal in your expenditure. Keeping Records As stated above, keeping the appropriate records is a legal requirement for all businesses in the United Kingdom. There are many different ways of recording these and a variety must be kept. This includes: Sales Records - It is important that these businesses have to keep records of all their sales and make these as accurate as possible. ...read more.

Middle

If a company does not research its competitors it can also suffer because it may be overwhelmed by them within the starting period. Competitors may steal your customers if they are charging better, or if you have few, you may be overwhelmed with the people that want to buy your product and you cannot cater to them until it is too late. To avoid problems a business can easily go into other shops and see how they are going in the current economy, see their prices and product range. A business that has a good customer care package and build relations with customers will cause problems for new companies because customers will not want to leave the old company, especially if the new one doesn't care much about its customers. To combat this, always make sure that your company is prepared to sacrifice some of its profits in the short term in order to keep customers happy. It will probably result in the customers returning if, for example, they have a gift card. When setting prices you should always consider competitors prices and what customers are willing to pay because if you charge too much, they will not buy any products, but if you charge too little, you may end up with less profits than desired. Use break even charts to find the best way for you to break even, but do not forget to use the questionnaire to make sure your customers are willing to pay these prices. ...read more.

Conclusion

Businesses should always monitor and forecast cash flows so they can see what is and will happen to them in terms of capital. You should always monitor your cash flow to see any past patterns and to check that you currently are not losing money. This can help show you if your strategies are working currently. Also, you should always forecast your cash flow to prepare for the future. Forecasting can help you start building up a margin of safety before an economic recession, for example. This can sometimes mean the difference between keeping and losing your company to bankruptcy. Businesses should always set clear objectives and financial priorities to make sure that they know what to do in the coming periods. Objectives will help you direct the business and its areas, while financial priorities will also help you invest in what is vital and will benefit your company. You can also invest in certain areas of your business in order to make sure that they are performing to capacity. A key financial priority for a business looking for new products is Research and Development, who will help think of new ideas for future products. If you do not direct your capital or set clear objectives for the future then your company may not keep up with the competitive market since it will not have up to date products, the areas may not be functioning together and you may not be achieving anything since you are not aiming for it. ?? ?? ?? ?? Bryn Roberts 11L ...read more.

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