Route
2
Setup
A Map to Succeed in
Small Business / Private Practice
Start Up
NEXT
How to use the map
The following map has been designed to lead you through the
processes and challenges of starting up your own small business /
private practice.
Although not exhaustive, this route map will allow you to guide yourself
through the most common challenges of business start up.
The map is easy to navigate. The main line ----- takes you through the
eight main stations to starting your own business. The lines coming off
these main stations give you more specific information about individual
topics.
Click on the station, or topic, you wish to find out about. Once you
have read the information just click on the
logo at the bottom of
every page and it will return you to the main map.
BACK
NEXT
Good Luck
Learn from Experience
of Others
Legal & Financial
Advice
Mentor
Entrepreneurship
Who Needs to
Know?
Grow your
business
References &
Acknowledgements
Useful
Contacts
Networking
Pros & Cons
Naming your
Practice
MAKING A
START
Practice
Arrangements
BUSINESS
PLAN
BUSINESS
STRUCTURE
Trading
Arrangements
What is
Marketing?
FINAL
DESTINATION
Why you
need
Marketing
The 7 Ps of
Marketing
MARKETING
PREMISES &
EQUIPMENT
Raising
Finance
SCOPE OF
PROFESSIONAL
PRACTICE
FINANCE
Managing
Finance
Practice Accreditation
Clinical
Standards
Financial
Forecasts
Insurance
CPD
BACK
START UP
ROUTE MAP
Regulatory &
Professional
Bodies
MAKING A START
The Making A Start line identifies elements to consider when you are
thinking of setting up in private practice.
• Pros & Cons
• Entrepreneurship
• Learn from experiences of others
Click on the above categories to start your journey on this line.
The QMU logo will take you back to the Making A Start station and map.
BUSINESS STRUCTURE
The Business Structure line looks at elements involved in forming and
naming your business.
• Trading arrangements
• Practice arrangements
• Naming your practice
• Who needs to know?
• Legal & Financial advice
Click on the above categories to start your journey on this line.
The QMU logo will take you back to the
Business Structure station and map.
MARKETING
The Marketing line introduces you to marketing and its importance to
business.
• What is marketing?
• Why you need marketing
• The 7 Ps of marketing
Click on the above categories to start your journey on this line.
The QMU logo will take you back to the Marketing station and map.
PREMISES & EQUIPMENT
The Premises & Equipment line takes you through the main aspects involved
in choosing work premises and equipment.
• Which premises?
• Viewing premises
• Buy or lease?
• Working from home
• Planning permission & Building regulations
• Disability access & considerations
• Health & Safety / Environment issues
• Equipment needs
• Practice accreditation
Click on the above categories to start your journey on this line.
The QMU logo will take you back to the
Premises & Equipment station and map.
SCOPE OF PROFESSIONAL
PRACTICE
The Scope Of Professional Practice line summarises professional points to
consider within private practice & provides links to various professional
organisations.
• Practice accreditation
• Clinical standards
• CPD
• Regulatory & Professional bodies
Click on the above categories to start your journey on this line.
The QMU logo will take you back to the
Scope Of Professional Practice station and map.
SCOPE OF PROFESSIONAL
PRACTICE
The Scope Of Professional Practice line summarises professional points to
consider within private practice & provides links to various professional
organisations.
• Practice accreditation
• Clinical standards
• CPD
• Regulatory & Professional bodies
Click on the above categories to start your journey on this line.
The QMU logo will take you back to the
Scope Of Professional Practice station and map.
FINANCE
The Finance line provides a summary of financial considerations when
setting up in private practice.
• Raising finance
• Managing finance
• Financial forecasts
• Insurance
Click on the above categories to start your journey on this line.
The QMU logo will take you back to the Finance station and map.
BUSINESS PLAN
The BUSINESS PLAN line provides a summary & guide to creating your
business plan.
• What is a business plan?
• Executive summary
• Vision for business
• Sales & Marketing
• Running your business
• Finances
Click on the above categories to start your journey on this line.
The QMU logo will take you back to the BUSINESS PLAN station and map.
FINAL DESTINATION
The Final Destination line provides some final considerations before you start
your business.
• Mentor
• Networking
• Grow your business
• Useful contacts
• References & Acknowledgements
• Good luck
Click on the above categories to start your journey on this line.
The QMU logo will take you back to the Final Destination station and map.
PROS AND CONS
Is private practice right for you?
Elements you may wish to consider
Pros
• Personal challenge & opportunity
• Independence & autonomy
• Flexible working hours & flexible work location
• Direct ‘effort & financial reward’ relationship
Cons
• Business & financial insecurity
• Self finance of pension & work benefits
• On going business administration
• Impact on work/life balance
(Physio123, 2012)
Useful Links:
• Business Gateway: Why work for yourself?
•
Physio123: Benefits of private practice
ENTREPRENEURSHIP
Am I an entrepreneur?
Yes, when you undertake and manage the risk of setting up a
business, you are an entrepreneur.
Qualities of an entrepreneur
Most successful entrepreneurs share certain common qualities
which Business Gateway (2012) identifies as:
•
•
•
•
Self confidence and Self determination
Commitment and Perseverance
Initiative and Judgement
Self starter
Discover how these qualities and personal skills can help you
start up in business:
•
Business Gateway: Match your business skills and experience
LEARN FROM EXPERIENCE OF
OTHERS
Learn from both the mistakes and the successes
Speaking to those already in private practice, or to someone who has had
experience of setting up a small business, will give you an insight into the
realities of starting up a practice.
Suggested sources of local contacts:
•
Professional Bodies
•
Private Practitioner Groups (if available)
•
QMU Alumni & Friends
•
QMU Careers (2 year post-grad access)
Business Gateway provide a series of video diaries Start up diaries in which
others share their experiences of setting up in business.
Business Gateway also provide access to a network of experienced business
advisors who you can contact through Ask the Advisor and ask direct questions.
TRADING ARRANGEMENTS
How you will trade - your first important decision
The structure of your business affects the tax you pay. It is therefore
extremely important to select the most appropriate legal structure.
Structures relevant to private practice
•
•
•
Sole trader
Partnership
Private limited company
(Business Gateway 2012)
To consider these options further:
• Business Gateway: Legal structures: the basics
TRADING ARRANGEMENTS
How you will trade - your first important decision
The structure of your business affects the tax you pay. It is therefore
extremely important to select the most appropriate legal structure.
Structures relevant to private practice
•
•
•
Sole trader
Partnership
Private limited company
(Business Gateway 2012)
To consider these options further:
• Business Gateway: Legal structures: the basics
PRACTICE ARRANGEMENTS
Other considerations for the structure
of your business
•
•
•
•
Start up as a new practice from scratch?
Buy an existing practice?
Join an established practice?
Work full or part time?
(Santander 2012)
These decisions will have a direct impact on your set up
costs & the income you can expect to receive.
For a guide to buying an existing business:
• Business Gateway: Buy an existing business
NAMING YOUR PRACTICE
What’s in a name?
•
Naming your practice needs careful consideration.
•
The name will define your business, so ensure it is relevant to
clients and it conveys the service you wish to provide.
•
The practice name is significant for future branding &
marketing.
(Hill et al 2008)
For guidance on naming your practice:
•
Business Gateway: Choose the right name for your business
WHO NEEDS TO KNOW?
When you make the decision to set up in private practice there are certain people and
agencies who need to be informed:
•
Her Majesties Revenue & Customs (HMRC)
You must register your business with HMRC for business tax. This is further
explained in ‘Tax, NI & VAT’ under the FINANACE line. HMRC provides a
comprehensive guide in ‘Starting a business’.
You must tell HMRC within 3 months of starting otherwise you may face a fine.
(HMRC 2012)
•
Companies House
You must inform Companies House if you have decided to set up a company.
•
Professional Body
Your professional body may require this information to update your registration.
•
Employer
If you will still be working for someone else when you set up then you may be
legally required to inform your employer – check your contract of employment.
(Hill et al 2008)
LEGAL & FINANCIAL ADVICE
Getting professional advice
Getting the right legal & financial advice is an essential element in
setting up a new business.
Advice is required for many aspects of business, including:
•
•
•
Bookkeeping
Lease negotiations
Written agreements
For general advice on what to consider when choosing
financial & legal advisers and links to professional bodies:
•
GOV.UK: Set up your business – (see section ‘Working with advisers’)
WHAT IS MARKETING?
Marketing is more than advertising
The Chartered Institute of Marketing define marketing as:
‘’the management process responsible for identifying, anticipating and
satisfying customer requirements profitably’’
(CIM, 2012)
The goals of marketing are achieved by developing:
•
A marketing strategy –
how to promote the benefit of your services and meet the needs of
your clients
•
A marketing plan how you put your strategy into action
(Business Gateway, 2012)
WHY YOU NEED MARKETING
Always remember your practice is a business
Marketing will play a key role in the success of your business.
Developing a marketing strategy enables you to:
•
•
•
•
identify potential clients
understand & meet client needs
communicate the benefit of your services
identify and address business strengths & weaknesses
(Business Gateway 2012)
THE 7Ps OF MARKETING
Successful marketing addresses 7 key points:
•
•
•
•
•
•
•
Product
Place
Price
Promotion
People
Process
Physical
Environment
: your service
: location where you provide your service
: cost – price - profit
: advertising
: you/employees/clients
: standards of practice
: workplace standards
(CIM, 2009)
The following links provide an overview of marketing, how it works
and its importance to your business:
•
Business Gateway: Marketing
•
NESTA: Worksheet 4a:Marketing mix
WHICH PREMISES?
This is a key decision and there are many elements to consider
when looking for premises.
Choosing the wrong premises can be a costly mistake.
•
What area?
this will have an impact on the type of practice
you develop
•
Space?
space costs – what do you really need?
•
Buy or Lease?
what are the financial implications?
(Hill et al 2008)
VIEWING PREMISES
There are many things to consider when viewing potential premises:
Location:
• are the premises near your client base?
• are the premises near other healthcare providers, eg GP practice,
to help build local business networks / referral networks
Affordability:
• can you afford rent/mortgage, business rates & utilities?
• remember professional fees & insurance
• will there be costs to decorate, maintain & repair premises?
• will there be costs to meet the various regulatory standards?
Amenities & facilities:
• is there space for car parking for your clients?
Branding & future development:
• is there scope for future expansion
• do the premises reflect the image of your business?
(Hill et al 2008)
BUY OR LEASE?
Buy
This option allows you more control over the use and development of the
premises however it requires available capital.
Business Gateway look at the advantage & disadvantages of this choice in:
Buying business premises.
Lease
The majority of small businesses will choose to rent their premises as it is
often the most financially viable option. Main considerations:
• is the rent reviewed; is it all inclusive or are there hidden charges?
• how long do you want to commit to the lease?
• can you leave your lease early / can you renew your lease?
Business gateway consider this option further in: Renting business premises.
(Business Gateway, 2012)
Ask the professionals:
• Choosing the wrong property can be costly.
• Consult property experts: chartered surveyor / solicitor / bank manager
Useful link:
Business Gateway: Choose the right premises for your business
WORKING FROM HOME
If your home could accommodate your business requirements, then
working from home may be an option.
Advantages:
• lower costs (no rental fees or commuting costs)
• flexible working hours
Disadvantages:
• difficulty in keeping a good work-life balance
• isolation
(Business Gateway, 2012)
There are many factors to consider when setting up a home based
business. The following helpful Business Gateway link takes you through
the checks to do before you decide to work from home:
•
Starting a business from home
PLANNING PERMISSION &
BUILDING REGULATIONS
Alteration - Renovation - Decoration
If you want to make any changes to the premises, then you must
follow relevant planning rules and building regulations.
You may need to apply for planning permission and/or comply with
building regulations if you are considering:
• any building work
• alterations of property
• a change of usage.
As rules and regulations vary across regions, contact your Local
Authority for guidance.
(Hill et al, 2008)
For further information:
• Business Gateway:
Local authority services – ‘Planning and building regulations’
DISABILITY ACCESS &
CONSIDERATIONS
Are the premises and facilities accessible?
Under the Equality Act (2010), any business that provides a service to the
public is legally required to make ‘reasonable adjustments’ to the ‘physical
features of your premises to better enable disabled people access to your
services’.
(Government Equalities Office, 2010)
This can include ‘reasonable adjustments’ to:
• entrances and exits
• parking areas
• toilets.
The Government Equalities Office has produced a series of guides, including
a guide for business, to help explain what your new responsibilities are:
Equality Act 2010: What do I need to know?
Refer to your professional body for additional guidance
HEALTH & SAFETY
ENVIRONMENT ISSUES
All businesses are responsible for providing a safe and healthy working environment.
To help reduce risk at work there are health and safety laws which protect those
affected by your business’ activities (you, staff, clients, suppliers). Duties include:
• carrying out a risk assessment
• writing your business’ health and safety policy
• first aid and accident guidelines.
(Hill et al, 2008)
You also have legal responsibility for the environmental impact of your business. Your
duties of care may include:
• waste management
• storage and use of hazardous substances
• air and noise pollution.
(Business Gateway, 2012)
Refer to your professional body for specific guidelines
Useful links:
• Health and Safety Executive (HSE):
Health and safety made simple – The basics for your business
• NetRegs (organisation in partnership between UK environmental regulators):
Guidance by business sectors
EQUIPMENT NEEDS
Equipment needs vary depending on your profession and scope of
practice.
Although purchasing the full range of equipment is tempting, it is also
very expensive. It is therefore important to ask yourself:
•
•
•
do I really need this piece of equipment?
how often will I use it?
will it improve the level of service I can offer clients and
thereby allow me to increase the level of fees commanded?
Once you have decided that the equipment is required, next ask:
•
is it more financially beneficial to buy or to lease?
(Hill et al, 2008)
Refer to your Professional Body for guidelines on equipment
requirements
PRACTICE ACCREDITATION
Each profession has a different range of systems, processes and
procedures that allow practitioners to deliver an effective service.
These set professional standards and guidelines underpin practice
accreditation schemes which define the standards required for
practice.
If applicable, joining such a scheme allows you to:
•
•
•
demonstrate to clients your practice has achieved the
appropriate standards
demonstrate to authorities that you comply with relevant
legislation
use the guidelines to inform your decision on the suitability
of potential premises
(Hill et al, 2008)
Contact your Professional Body for information on practice
accreditation schemes
PRACTICE ACCREDITATION
Each profession has a different range of systems, processes and
procedures that allow practitioners to deliver an effective service.
These set professional standards and guidelines underpin practice
accreditation schemes which define the standards required for
practice.
If applicable, joining such a scheme allows you to:
•
•
•
demonstrate to clients your practice has achieved the
appropriate standards
demonstrate to authorities that you comply with relevant
legislation
use the guidelines to inform your decision on the suitability
of potential premises
(Hill et al, 2008)
Contact your Professional Body for information on practice
accreditation schemes
CLINICAL STANDARDS
Each profession has their own set of clinical standards and guidelines.
They are set out by each Professional/Association Body.
Clinical standards and guidelines form the basis of practice accreditation
schemes.
(Hill et al, 2008)
It is important to familiarise yourself with them as they will influence:
•
•
•
•
the type of premises you choose
the equipment you will need
the health and safety guidelines you need to follow
the environmental guidelines you need to follow.
For Clinical Standards and Guidelines
contact your Professional Body
CPD
Continuing Professional Development
‘CPD is the way professionals continue to learn and develop
throughout their careers so they keep their skills and knowledge
up to date and are able to work safely, legally and effectively.’
(HPC, 2012)
CPD is a requirement of all health and social care professionals.
It is important that you plan and allocate sufficient time and
money to support this learning within your private practice.
You must keep a CPD portfolio to record all learning.
As a private practitioner, CPD that up-dates (not expands) your
current skills and professional knowledge is a cost that can be
offset against tax.
(Hill et al, 2008)
For guides to standards of CPD requirements
contact your Professional and Regulatory Body
REGULATORY & PROFESSIONAL
BODIES
Regulatory Bodies are independent of
professional bodies. They act in the interest
of the public and promote regulation.
Regulatory bodies keep a register of health
professionals who meet their standards for
training, skills and behaviour.
Professional/Association Bodies are
independent of regulatory bodies. They act
in the interest of the profession and support
the practitioner. Members are required to
meet its own standards for training, skills and
behaviour.
(GRCCT, 2012)
Click on the following professions for
details of their associated regulatory &
professional bodies:
•
Dietetics
•
Nutrition
•
Occupational Therapy
•
Podiatry
•
Physiotherapy
•
Nursing
•
Speech & Language
Therapy
•
Audiology
•
Hearing Aid Dispensers
•
Radiography
•
Art Psychotherapy
•
Music Therapy
•
Dance Movement
Psychotherapy
DIETETICS
Regulatory Body:
• Health and Care Professions Council (HCPC)
Professional Body:
• The British Dietetic Association (BDA)
Suggestions of Private Practice Groups / Forums:
• Freelance Dietitians
• Dietetics.co.uk
NUTRITION
Regulatory Body:
• Nutritionists are not regulated by a governing body in the UK
Professional Body:
• Association for Nutrition (AfN)
Suggestions of Private Practice Groups / Forums:
• The Nutrition Society (NS)
• The Nutrition Society – Scottish Section
• The Nutrition Society – Irish Section
OCCUPATIONAL THERAPY
Regulatory Body:
• Health and Care Professions Council (HCPC)
Professional Body:
• British Association of Occupational Therapists (BAOT)
Private Practice Groups / Forums:
• The College of Occupational Therapists Specialist Section –
Independent Practice
PODIATRY
Regulatory Body:
• Health and Care Professions Council (HCPC)
Professional Body:
• The Society of Chiropodists & Podiatrists (SCP)
Suggestions of Private Practice Groups / Forums:
• SCP ‘Private Practice Forum’ members access only
• Podiatry Arena
PHYSIOTHERAPY
Regulatory Body:
• Health and Care Professions Council (HCPC)
Professional Body:
• Chartered Society of Physiotherapy (CSP)
Suggested Private Practice Groups / Forums:
• PhysioFirst
NURSING
Regulatory Body:
• The Nursing and Midwifery Council (NMC)
Professional Body:
• Royal College of Nursing (RCN)
SPEECH & LANGUAGE
THERAPY
Regulatory Body:
• Health and Care Professions Council (HCPC)
Professional Body:
• Royal College of Speech & Language Therapists (RCSLT)
Suggested Private Practice Groups / Forums:
• Association of Speech & Language Therapists in
Independent Practice (ASLTIP)
AUDIOLOGY
Regulatory Body:
• The Registration Council for Clinical Physiologists (RCCP)
Professional Body:
• British Academy of Audiology (BAA)
Suggested Private Practice Groups / Forums:
• Association of Independent Hearing Healthcare Professionals
(AIHHP)
HEARING AID DISPENSERS
Regulatory Body:
• Health and Care Professions Council (HCPC)
Professional Body:
• British Society of Hearing Aid Audiologists (BSHAA)
Suggested Private Practice Groups / Forums:
• Association of Independent Hearing Healthcare Professionals
(AIHHP)
RADIOGRAPHY
Regulatory Body:
• Health and Care Professions Council (HCPC)
Professional Body:
• Society of Radiographers (SOR)
Suggested Private Practice Groups / Forums:
• SOR ‘Professional Standards for Independent Practitioners’ –
members access only
ART PSYCHOTHERAPY
Regulatory Body:
• Health and Care Professions Council (HCPC)
Professional Body:
• British Association of Art Therapists (BAAT)
MUSIC THERAPY
Regulatory Body:
• Health and Care Professions Council (HCPC)
Professional Body:
• British Association for Music Therapy (BAMT)
DANCE MOVEMENT
PSYCHOTHERAPY
Regulatory Body:
• DMP is not a regulated profession. However application has
been made to the Health and Care Professions Council
(HCPC) for registration (click here to see application)
• Standards of Proficiency – refer to HCPC standards for
Art Therapists (click here to see document)
Professional Body:
• Association for Dance Movement Psychotherapy UK
MANAGING FINANCE
It is essential for any business to carefully manage their financial
performance.
The following list provides a linked overview of the elements involved:
• Business banking
• Bookkeeping
• Tax, National Insurance & VAT
• Consider your fees
• Business budgeting
• Should I use an accountant?
BUSINESS BANKING
The right bank and the right bank account will help in the success of
your business
Each business has its own needs, so it is important to take the time to research
which bank will best meet your business needs. Business Gateway (2012) advise
to carefully compare the different services and costs offered, including:
•
•
•
•
•
•
facilities - eg debit and credit cards or telephone or internet banking
interest rates - particularly if you're usually in credit
overdraft charges - particularly if you're often overdrawn
monthly fees
additional account charges - eg for statements, cheques and cash payments
additional services - eg small-business advice
If you set up as a sole trader it may be possible to use your own personal bank
account. If your bank allows this then it important to keep separate and detailed
records of both personal and business transactions.
(Hill et al, 2008)
finance.scotland.gov.uk provide further information:
•
Understand the basics of business banking
•‘
How to choose and manage a business bank account
BOOKKEEPING
Record the movement of your money
•
You must keep an accurate record of your income and outgoings.
•
You will need this information to help you complete your tax return correctly.
•
Records can be kept either on paper (eg. ledger book) or on computer.
•
Records must generally be kept for at least 6 years. HM Revenue & Customs
(HMRC) may check to make sure you're paying the right tax at the right time
and they can look at any record of the last 5 years.
(HMRC, 2012)
Important information and guidance on keeping records can be found at:
• HMRC: Record keeping (self-employed)
• finance.scotland.gov.uk: Accounts management
TAX, NI & VAT
When you start a business you become responsible for ensuring that the
appropriate tax is paid.
You must register with HM Revenue & Customs (HMRC) who will set up Tax and
National Insurance records (appropriate to your working status) and supply a
Self Assessment tax return to complete each year. The types of tax are:
•
•
•
•
Income Tax*
a tax on ‘taxable income’
Corporation Tax
a tax on ‘taxable income’ of companies & organisations
National Insurance* contributions which directly affect your entitlement to
certain state benefits (including State Pension).
Payable with income tax under Self Assessment.
Value Added Tax
payable if your turnover is more than the VAT threshold.
*If you have employees you will need to arrange their tax & NI contributions .
(HMRC, 2012)
•
•
HMRC provide invaluable information on what you will need to consider when
starting a business in: Starting a business
Business Gateway also provides guides on Tax returns &
Tax rates and allowances
CONSIDER YOUR FEES
When you decide on the prices to charge for your services, remember what is
required to provide that service and the costs you need to cover:
•
•
•
•
•
your clinical knowledge and skills
your time
variable costs (eg strappings, dressings etc)
fixed costs (eg rent & rates, CPD, marketing, administration etc)
Pension/Tax/NI payments
Market influences can also determine your fees (eg what other practices charge
and what patients are willing to pay).
(Hill et al, 2008)
Your professional body may also be able to advise on current fee scales.
In addition to setting fees, consider what forms of payment you will accept and
discuss the options with your bank.
BUSINESS BUDGETING
Control your cash-flow
A business budget allows you to carefully control and manage your finances.
It is a plan of the financial outcomes you want your business to achieve.
Business Gateway advise to keep your business budget simple and focus on
two questions:
• what are you expecting to earn?
Income
• what are you expecting to spend? Expenditure
Your expenditure will include costs such as rent, equipment, professional fees,
wages, tax, advertising, website management etc.
When you have your budget you can use it to inform business decisions (such
as reducing costs) and compare future incomes to budgeted incomes and
identifying areas that require attention.
(Business Gateway, 2012)
For further information:
• finance.scotland.gov.uk: Business budgeting
SHOULD I USE AN
ACCOUNTANT?
To decide if you need to engage an accountant you should ask yourself:
‘Would my business benefit from professional support?’
Accountants complete your end of year accounts and can provide professional
advice on how to best manage your business finances.
Small companies with a low turnover are not required to have their accounts
prepared by an accountant, so you can choose to complete them yourself.
(Hill et al, 2008)
Your decision will be influenced by:
• your financial situation
• yours skills and confidence in performing the task
• the time demands of performing the task
• the needs of your business
(Business Gateway, 2012)
Useful links:
• finance.scotland.gov.uk provide further advice in:
Choose and work with an accountant
• For advice on completing your own tax return: HMRC
RAISING FINANCE
How will you fund the early stages of your business?
Every new business needs money to cover the initial start up costs and fund the early
stages of running the business. You will need to:
•
•
•
identify your start up costs – what are they? how much? how will you fund them?
create a Personal Financial Forecast – expected costs to cover living expenses
create a Business Financial Forecast – expected income/expenditure & cash-flow
Once you know how much you need, your options for raising funding are:
• use your own money
• borrow from a bank
• non-bank borrowing (eg friends and family, outside investor)
(Business Gateway, 2012)
For further information:
• Business Gateway provide guidance in Surviving until my business is off the ground
and various helpful links on raising finance in Funding and financing
•
finance.scotland.gov.uk provides valuable guidance on raising finance for new
businesses in: Are you ready for financing? – ‘Support for start ups’
FINANCIAL FORECASTS
When you plan your business, creating a financial forecast helps you to:
•
•
raise funding from a bank or investor for ‘start up’ costs
monitor the performance of your ‘up and running’ business
There are 3 types of forecasts to focus on:
•
•
•
sales – how many clients you expect to see and at what charges
profit and loss – expected income and expenditure
cashflow – the pattern of income and spending and your ability to pay bills
When you start up a business it is your responsibility to understand and have full control
of the money coming in and out of your business. Well managed finances will allow you
to make effective decisions and keep your business successful.
(Business Gateway, 2012)
For further information:
• Business Gateway provide a summary of Financial Forecasts as part of their guide
to preparing a business plan.
INSURANCE
Protect you.
Protect your business.
Insurance cover protects you and your business. Not only is it highly recommended:
in certain circumstances, it is a legal requirement.
Examples of compulsory insurance:
• employer’s liability
• medical malpractice
• public liability
• motor insurance
Examples of recommended insurance:
• buildings and contents
• tax investigation insurance
(Hill et al, 2008)
To ensure that you get the right insurance:
• consult an insurance broker
• contact your professional body for guidance on the required cover
WHAT IS A BUSINESS PLAN?
•
What is a business plan?
A business plan is a professional document that sets out what your business is, your
short & long term goals for your business and the mechanisms used to achieve them.
•
Why do I need a business plan?
It is a vital part of any business start up as it allows you to identify and focus on the
key aspects of developing your business. It also helps you recognise possible
problems or missed opportunities.
•
Who is a business plan for?
For investors/potential buyers/potential partners – provides all essential information.
For you - sets out a clear set of goals & forecasts that allow you to monitor progress.
•
What to include in your business plan:
• Executive summary
• Vision for business
• Sales and Marketing
• Running the business
• Finances
(Business Gateway, 2012)
Useful information:
• Business Gateway provide a guide to developing a business plan in
Prepare a business plan which also includes a business plan template to download
EXECUTIVE SUMMARY
The executive summary is an overview of your business.
It should provide the key aspects of your business plan and present them in a
clear and concise manner.
The statement should summarise:
• who you are, yours skills and experience
• the business you want to start
• what services your business will provide
• how you will deliver these services
• who your clients will be
• why clients will value your services
• how you will make a profit
(Business Gateway, 2012)
Useful link:
• Business Gateway provide a guide, links & videos to explain the elements of
developing a business plan in: Prepare a business plan
VISION FOR YOUR BUSINESS
The vision you have for your business explains more about your business and
how you believe it will develop.
Within this section:
• sum up your business idea
• explain how and when you are going to start the business
• explain your services and benefits to clients
• explain why clients will choose you and why your service is different
• provide business aims and show what you want to achieve
- where do you want to be in 1 year?
- where do you want to be in 3-5 years?
- create aims that are measurable to allow later comparison
• explain how you will meet any legal and insurance requirements
(Business Gateway, 2012)
Useful link:
• Business Gateway provide a guide, links & videos to explain the elements of
developing a business plan in: Prepare a business plan
SALES & MARKETING
Being a good clinician or professional is not enough for a successful private
practice – you must also develop a fundamental understanding of how to
market and sell your services to help you find and keep your clients.
The elements of marketing are summarised in the Marketing line and links
are provided for further information.
Within your business plan, the sales & marketing information required includes:
• a summary of your market research
• profile of your potential clients
• profile of your competitors
• market risks
• pricing
• promotion & advertising (eg website)
(Business Gateway, 2012)
Useful link:
• Business Gateway provide a guide, links & videos to explain the elements of
developing a business plan in: Prepare a business plan
RUNNING YOUR BUSINESS
Running a business is hard work
If you are a sole trader, then many of the everyday activities required to keep
the business going will fall to you. In addition to your clinical skills, you should
demonstrate any managerial and financial skills, or who you will be outsourcing
to for assistance.
When completing this section of your business plan include:
• your role (skills and experience – clinical/financial/managerial)
• outsourced roles (eg bookkeeping)
• premises (cost of rental or purchase)
• suppliers (main suppliers and credit terms)
• equipment (cost and how it will be funded)
• managing operational risks (possible problems and solutions)
(Business Gateway, 2012)
Useful link:
• Business Gateway provide a guide, links & videos to explain the elements of
developing a business plan in: Prepare a business plan
FINANCES
Setting up and running a business costs money
A full understanding of your business finances is essential. Creating a detailed
breakdown provides key information for lenders or investors and enables you to
monitor the on-going performance of your business.
The elements required to effectively manage your money are summarised in
the Finance line and links are provided for further information.
For the finance section of your business plan detail the following:
• start up costs
• personal financial forecast
• profit and loss forecasts
• sourcing finance
• cash-flow forecasts
• managing financial risks.
Useful link:
• Business Gateway provide a guide, links & videos to explain the elements of
developing a business plan in: Prepare a business plan
MENTOR
•
What is a mentor?
Starting up in private practice can be a daunting task and it is good to have
someone experienced to help guide you. A person who is willing to take on
this role is called a ‘business mentor’ and they can have a positive impact
on both you and your business.
•
Who can be a mentor?
A mentor can be someone you know within your profession who has already
established a private practice. It could also be friends or family members
who have small business experience.
•
How and when do you meet your mentor?
Meetings can be done face to face, by phone or online. They can be formal
or informal and arranged to suit both parties.
A mentor can be as involved as you both want them to be and, alongside other
professional advisors, can be instrumental in the success of your business.
(Business Gateway, 2012)
For further information:
• Business Gateway provide a summary of the potential role a business
mentor could play in the set up of your business in:
Business mentoring
NETWORKING
Contacts and Support
Networking can help you to:
•
Build your business
When you start your private practice you should aim to create a network of
professional contacts who have the potential to provide you with referrals.
These contacts could include the local GP practice; physiotherapists and
others within your profession who practice locally.
•
Provide a network of support
Working as a sole practitioner can be isolating, so it is important to create a
network of support. Make contact with others in private practice (there may
be a local private practice group within your profession or local branches of
your professional body). Keep in touch with fellow graduates – they may be
in a similar situation. Business support can also be provided by local
business networks.
(Hill et al, 2008)
Useful Links:
• QMU: Alumni & Friends
GROW YOUR BUSINESS
Should you expand?
Once your practice is established you may want to consider growing your
business. It must be done at the right time for you, and based on the strengths
of your business.
Possible options for future growth include:
• employing staff
• engaging a self-employed associate
• expanding your premises or purchasing new premises
• selling part of the goodwill.
If you regularly monitor your business performance, you will recognise the point
when expansion may be a consideration.
For further information:
• Business Gateway provide information and guidance on assessing when to
take your business forward in: Growing a business
USEFUL CONTACTS
The following pages provide a link to some of the agencies,
organisations and helpful bodies recommended within this
guide:
• Business
• Regulatory / Helpful Bodies
USEFUL CONTACTS
Business:
•
Business Gateway – Scotland (Lowlands)
Comprehensive advice, help and support for new & growing businesses in Scotland.
•
Highlands and Islands Enterprise Information – Scotland (Highlands)
Scottish Government’s economic and community development agency for north & west of Scotland.
•
GOV.UK - England
Comprehensive advice, help and support for new & growing businesses in England.
•
nibusinessinfo.co.uk – Northern Ireland
Comprehensive advice, help and support for new & growing businesses in Northern Ireland.
•
Invest NI – Northern Ireland
Provides strong government support for business.
•
business.wales.gov.uk - Wales
Comprehensive advice, help and support for new & growing businesses in Wales.
•
Federation of Small Businesses
The Federation of Small Businesses is a membership organisation that provides legal
protection and business benefits.
•
The Princes Trust – Scotland (Explore Enterprise Programme)
Supports unemployed young people aged 16-25 in exploring the idea of becoming self-employed.
•
The Princes Trust – England/Wales/Ireland (The Enterprise Programme)
Supports unemployed young people aged 18-30 in exploring the idea of becoming
self-employed.
USEFUL CONTACTS
Regulatory / Helpful Bodies:
UK Environment Agencies
Regulatory agencies which help businesses understand their environmental responsibilities:
•
•
•
Scottish Environmental Protection Agency (SEPA) - Scotland
Environment Agency – England & Wales
Northern Ireland Environment Agency (NIEA) – Northern Ireland
Health and Safety Executive (HSE)
Enforcing authority responsible for inspection & enforcement of Health & Safety regulation.
•
•
•
•
Health and Safety Executive - HSE
HSE – Working with Scotland
HSE – Working with Wales
The Health and Safety Executive for Northern Ireland – (HSENI)
HM Revenues & Customs (HMRC)
Government agency responsible for collecting tax – provides a wide range of help and support
for those starting and running a new business.
•
HMRC – ‘Starting a business’
GOOD LUCK
Planning - Enthusiasm - Determination
Setting up in private practice and beginning your own business can be an
exciting and fulfilling journey. There are many factors to consider and hopefully
this Route Map will have highlighted some of the main elements required when
you start up in business.
If you decide to that setting up in business is right for you – plan well and
approach this process with enthusiasm and determination.
Good Luck
REFERENCES and
ACKNOWLEDGEMENTS
The following pages provide a list of the references that credit
all sources of information used in this work and the relevant
acknowledgments to those who helped produce and create
this resource material:
• References
• Acknowledgements
REFERENCES
CIM. 2009. Marketing and the 7 Ps - A brief summary of marketing and how it works. Available at:
http://www.cim.co.uk/resources/understandingmarket/definitionmkting.aspx
CIM. 2012. Definition of Marketing. Available at: http://www.cim.co.uk/resources/understandingmarket/definitionmkting.aspx
Business Gateway. 2012. Available at: http://www.bgateway.com
General Regulatory Council for Complimentary Therapies (GRCCT). 2012. Regulator or Association: What is the difference.
Available at: http://www.grcct.org/difference.htm
Government Equalities Office. 2010. Equality act 2010: What do I need to know? Quick start guide for businesses who sell goods
and services. Available at: http://www.homeoffice.gov.uk/publications/equalities/equality-act-publications/equality-actguidance/business-quickstart?view=Binary
Hills, K., Swaffin-Smith, C., Thomas, A. 2008. Private Practice Handbook. London: The Society of Chiropodists and Podiatrists.
HMRC. 2012. Record keeping (self employed). Available at: http://www.hmrc.gov.uk/sa/rec-keep-self-emp.htm
HMRC. 2012. Starting a business. Available at: http://www.hmrc.gov.uk/startingup/index.htm
HPC. 2012. Continuing Professional Development. Available at: http://www.hpc-uk.org/registrants/cpd/
Physio123. 2012. Benefits of private practice. Available at: http://www.physio123.co.uk/private-practice-resources/benefits-ofprivate-practice.html
Santander. 2012. Santander business guides, Industry Sector: Chiropodists. Available at: https://www.allianceleicestercommercialbank.co.uk/bizguides/full/chiropodist/index.asp
[All online sources accessed 18 May 2012]
ACKNOWLEDGEMENTS
Thank you to all who contributed to this
resource, especially:
• Di McMillan (Project Officer)
• Working Group: Roni Bamber (Chair), Judith
Lane, Jo Rowley, Lande Wolsey