Student Entrepreneurs

We all know that being a student can be tricky financially. Some students rely on their student loans to get by from term to term, often saving up money in the summer for the next year at university. Other students take on part time jobs whilst they're studying to help them pay the bills and maybe have a bit more left over for nights out.

There is also another type of student - you could call them the entrepreneurial student - who starts a business whilst at university. Some of them carry the business on when they leave university rather than getting a job.

Some students start small businesses by trading on websites like Ebay to make a bit of extra money, whereas others want to develop their businesses into something bigger which will grow into larger companies when they finish studying.

Starting a business whilst studying isn't for the faint hearted and it's easy to forget about the essentials you need to have in place to effectively run a business. Here are a few of those essentials to give you a helping hand.

Public Liability Insurance Cover

It's something that's easy to forget but Public Liability Insurance really is a must for nearly all businesses. If a member of the public suffers any kind of loss or injury as a result of the activities of your business you will be liable for the costs if someone makes a compensation claim. Public Liability Insurance is there to cover your costs.

There are other types of insurance you might need, depending on the business you run. For example, if you let properties you will need Landlord Insurance which will cover you financially should anything happen to your rental property.

Find a Reliable Accountant

It is often a good idea to get help from a professional when it comes to managing your taxes and finances. Tax forms and codes can be tricky, and getting the help of an accountant will save you time that you probably have little of if you're starting a business and studying at the same time.

Write a Business Plan

You have probably heard it before but it's definitely a good idea to have a business plan. If you plan ahead you can track your progress towards reaching your businesses goals. If you want to take on a business partner or investors, a good business plan will be essential for anyone you want to take your business seriously.

Get Your Trading Structure Right

Most small businesses in the UK will start trading as a Sole Trader or a Limited Company. When you run your business as a Sole Trader you are self-employed and there is no separation between your personal and business finances.

This kind of set-up will be attractive to students because it's simple, without having to follow some of the accounting procedures needed to set up a limited company. However, having a limited company does mean that if your business fails, any debts are kept separate from your personal finances.

Register Your Business With Companies House

Companies House is the body that regulates the registration of companies. They also manage the process when companies are dissolved. They make this information available to the public.

If you decide to set up a limited company you need to register at Companies House. There are agents who will help you with the process of registering your business and it can all be completed online fairly simply. You could also ask your accountant to register your new company too.

Being a student and starting and running a business can be tough. Don't forget about the essential legal requirements you need to have set up in order to be able to run your business properly. Once you've got them out of the way you can get on with the fun part and that's running your business.