If you’re just starting a new business the number of things you have to do can feel overwhelming. After all, it’s not just a case of focusing on what you are selling, but also about managing your finances, ensuring people know about your great product or service, knowing when and how to hire people, purchasing equipment – the list goes on!
And while in the early days it’s easy to imagine, you’ll be able to manage it all, especially with trusty Google by your side, the reality is that isn’t always the best option. There is so much information (and sadly misinformation) online that just trying to work out what you should be doing can be incredibly time-consuming and that’s before you even start putting it into practice!
So, while hiring consultants might seem like an extravagance, we would argue they are a sound business investment. Here’s 5 reasons why using a consultant could be a good choice for business start-ups.
1. Gives you more time to focus on what you’re good at
While it might be exciting to think about updating your social media accounts, or being a whizz on payroll, is this really where your skill set lies? And more importantly is this where you should be focusing your time?
If the answer to either of those questions is no, then we would highly recommend using consultants and focusing on what you do best, as ultimately that’s going to help grow your business.
2. Using consultants can help reduce your operating costs
One mistake a lot of start-ups make is thinking they need to recruit someone immediately to fulfil a role. But using consultants is often cheaper, especially when you first start out. Not only will you save time as you won’t need to train them, but if you suddenly find their services aren’t required anymore, it’s a lot easier to terminate a contract than get rid of an employee.
In fact, using a consultant to start with can be a useful way of working out whether you really need someone full time. Look on it as a way of dipping your toe in the water.
3. Helps improve your business’s efficiency
If you or your team try to juggle too much at the same time chances are things will fall through the cracks and errors will be made. And when it comes to things like payroll or HR, mistakes can be costly and damage your business’s reputation.
Give the work to a consultant and you can rest assured those jobs will be completed properly and on time.
4. Consultants reduce the risk to your business
If last year told us anything, it’s that we don’t know what’s around the corner. After all a year ago, we never would have thought we’d still be in the midst of a pandemic.
And that’s exactly why hiring consultants could be a good choice for your business. It offers you the flexibility to just use them for specific projects as and when you need them, rather than committing to employing someone full time. This can be particular useful if your business fluctuates during the year.
But if you do hire consultants, just make sure you don’t fall foul of IR35. This piece of tax legislation tackles “disguised employment”, when contractors work for companies via an intermediary when in fact they should be classed as a “permanent employee”.
If you need any advice on this complicated and confusing area, please get in touch.
5. Keeps your business compliant
Most of us know that if you don’t file your business taxes or self-assessment form on time, then the tax man will come knocking. But do you know what Health and Safety regulations you need to be following? What about HR? Do you have a full understanding of all the legal rights and responsibilities you have to abide to?
Remember, ignorance isn’t a defence, so we would definitely recommend getting in the experts to provide you with advice and guidance to keep your business compliant.
Need accountancy advice for your business start-up?
Of course, one of the big areas for any new business is managing your finances, and as we mentioned in in our last post, there are a lot of important financial decisions you need to be making from day one.
As well as offering the usual accountancy services, such as bookkeeping, Corporation Tax, payroll etc, we’re also experienced in helping new businesses grow, so if you are looking for an accountant, give us a call today to find out how we can help your business start-up.
