Building A Small Project On Small Projects

1977 Words8 Pages
As we intend to start with small projects, it won 't be essential to register for VAT. However, we aim to work on larger projects eventually (earn over £80000 a year). According to RIBA Practice management book, “if the practice intends to take on the larger commercial project then clients will generally expect to pay VAT and not charging it might not benefit them.” So registering for VAT may be something we should consider near the end of the first year of the practice. We are going to lease a small studio space in an office complex in Birmingham that can accommodate for four but also allows us to use facilities such as meeting rooms if needed. The lease will cover building and content insurance. A number of factors informed our choice…show more content…
A new practice would benefit from having a business plan, to express where it’s going and how it intends to get there. As described in The RIBA ‘Starting a Practice’ Book, a business strategy allows the principals to evaluate their decision making against a described position.” When the practice needs financial backing, having a business plan will be extremely useful. The plan should highlight the practices ambition and unique selling point, key actions, marketing requirements and targeted sectors, as well as financial matters and practices particulars such as address, VAT numbers, etc. Based on a budget analysis, and considering start-up and equipment costs, we have concluded that there is enough to cover all costs. And pay for accounting, legal and any other consultants that we may need at any point. We will employ architectural staff once we have a few projects running. The practice can increase in capacity once it has settled into the industry. Taking out a mortgage might be something to consider, if we decide to expand the practice. Banks are always prepared to support local businesses and lend money to them if they feel the practice has a professional approach to business. Banks compete to offer the best business loans by offering flexible repayment plans or lowering and fixing interest rates.
Open Document