New Businesses - Taking care to make the best start

We have seen a number of start-ups in recent months that, despite a difficult financial climate, might suggest there are more to come in 2009.

You might want to consider enlisting the aid of a compliance consultancy to help to guide you through the process. The Association of Professional Compliance Consultants website - apcc.org.uk - has a list of member firms together with their locations and specialisms.

The Financial Services Authority is entitled to take up to six months to approve an application but in straightforward cases the timescale could be half of that. Within the application, you will be asked if there is any specific date by which you would like the firm to be authorised. Provided reasonable notice is given, the FSA will endeavour to work with you to achieve that date. If you have not yet started the process then you should visit the FSA website, follow the instructions for 'how do I get authorised' and download the forms relevant to your proposed business. On reviewing these forms, you may again be minded to speak to an expert.

You will need to make sure that you can provide all of the information called for the respective forms in order to avoid delays. In that respect, it is likely that you will need to enlist the aid of an accountant to prepare opening balance sheet and profit and loss forecasts. You will also need to obtain a compliant professional indemnity insurance quote, although you will not need to put the cover into place until you know the date from which you will commence trading.

One aspect that could hold up the process is the obtaining of references from previous employers by the FSA in respect of approved persons. The forms ask if there is a date before which references should not be sought from previous employers and it is probably a good idea to disclose to the firm that you are leaving that the FSA may seek a reference, though of course the timing of that can be difficult.

In addition to the FSA form filling mentioned above, you will need to think about a consumer credit licence and registration with the Information Commissioner for data protection purposes. Then there is the small matter of obtaining a decent spread of agencies, dependant on the type of business that you are intending to run.

One option on this last point could be to investigate a network or alliance option. There are certain of these groups that, subject to meeting its own eligibility criteria, will grant membership to start-up firms.

- Ian Ritchie, director, RWA Group.