THE SUNDAY TIMES - BUSINESS DOCTOR
11 April 2010

ROC from Dublin writes: I want to set up a website for tourists thinking of taking walking holidays in Ireland. Can you give me some advice on how to get the business side going?

To start your own business there are a number of key issues and considerations which need to be examined writes Ken Kilmartin, Audit Director with Horwath Bastow Charleton in Limerick.

It is vitally important that you have a strategy. This will detail how the business will succeed. This strategy should be explained in your business plan, including an overview of the business and how it will work.

The lifeblood of any business is its cash flow and you need to ensure that you have sufficient access to cash to make your business viable. It is very likely that you will need a reserve of cash in place as any supplemental funding will usually only be granted on the basis that you bring some funding to the business yourself.

Structuring your business correctly is vitally important. This may mean operating as a sole trader, through a partnership or a company. There are advantages and disadvantages of each, but usually the correct structure for your business will be determined by the nature of the business and the parties involved. Going into business carries with it responsibilities. Being a company director is an onerous task, and any company director needs to be well briefed on their responsibilities.

The importance of having accurate, timely and relevant financial information cannot be understated. Once you start in business you need to ensure you are constantly informed of how your business is doing. Prepare monthly/quarterly management accounts to monitor the performance to date and prepare cash flow projections and forecasts to ensure your business continues to be viable going forward.

Surround yourself with good professional advisors. Ensure you source advice when it is required  - spending on sound financial, tax and legal advice can save you a great deal of time and money in the longer term.