With the holiday season now in full swing, you may find time to stop and think about the rest of your life.

Do you feel trapped in your existing job? Is your boss getting you down? Maybe you had such thoughts while lying on the beach? Perhaps you considered working for yourself? So, if you are still wondering whether to take the plunge, how do you go about starting your own business?

Firstly, you need a business plan - the product/service, premises, facilities, personnel, finance, etc. Notify the Inland Revenue - about you and your employees (if you have any) - if you do not, there could be financial penalties and interest charges.

Contact the VAT Office - you must register if sales exceed £50,000 in the first year. There are penalties if you do not.

Speak to the Contributions Agency - sole traders and partners have to pay Class Two National Insurance Contributions - the old 'stamp'. Consult a solicitor - sound legal advice on contracts, agreements, terms of business, etc, is a good investment.

Will you need product liability or professional indemnity insurance? Most businesses require public liability insurance and an employer must have employer's liability insurance. You will need to make your own arrangements for pensions, life assurance and private medical insurance. State sickness benefit is limited - you can take out permanent health insurance to cover prolonged periods of illness. Notify your insurer about the business use of your car and your house if you are working from home.

You will need inexhaustible supplies of energy, staying power and confidence to help make your business venture a success!

Peter Meredith is a partner with Horwarth Clark Whitehill.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.