The idea of answering no one, managing your time on your own pace, enjoying your own freedom seems really nice. If a person has some real ideas, commitment to work and ability to execute the idea, then becoming one’s own boss is achievable.
Self- employment is very hard work, but it also has its own benefits. All you need is to find the best that suits you, be it a hair-saloon, a wedding planner, a catering service, a restaurant owner, business solutions, or hotel industry.
Reasons to start your own Company
Some people are meant to be entrepreneurs. They start showing their qualities from early childhood. But for others, who want to register their own company, the process is very scary. Unless hiring a company formations agency, you should always remember the benefits attached to it.
- You are the boss
- Make your way to the world
- You are experimental with your ideas
- Manage your time on your own pace
- Take a vacation when you want
- Decide your own deadlines
- Decide what you want to do
- You are motivated
- You have the freedom of making your decisions
- You earn the money you make i.e. you keep all profits for yourself
Entrepreneurial features for Company Formation
Identify yourself and your expertise
The very first thing about being a boss is to identify and value yourself. You should know your area of expertise. If you have the skills and knowledge to run a business, you can be independent and set up a company.
Choose your team
The business idea is vital however the team that’s going to execute the idea is important too. You should work out with a list of skills you need to run the business. The team should be equally skilled in order to achieve the dream.
Finance / Funding
The procedure of the company formation needs a push of finance. It might be seed capital or Bank loans. So, planning your finances is the next vital thing to do. From startup costs to ongoing expenses, you should be able to understand how much money you will need to run your business. This can be done by preparing a business plan, budget or forecast, if you have never done one before, don’t worry we can show you how to do it and check it with you if you need to, so yes, we can help to do a business plan and if it looks good support you by the company formation.
Marketing
Both a product and a service need a proper marketing strategy to help run a business. There are many ways to advertise a business, through Public Relations, Influencers and Social Media, emailing, AdWords, cookies and blogs. Marketing is important for attracting customers towards your business, but it is also essential to get partners, suppliers, vendors, etc. for running a business. Through marketing, your potential clients will get to know your product or service.
An office address
Once you know what you are doing and how you are doing, it’s important to figure out where you are running your business from. The Office address is one of the most important checklist points in company formation. You can work from wherever you want but your office address should be in a good district to add trust to your business.
Keep everything documented
It’s a good practice to document everything while setting up a company. The Company Act 2006 states that private limited companies must keep accounting records for 3 years from the date they are made. Public limited companies (PLCs) must keep their accounting records for 6 years from the date they are made. However, UK tax law requires private companies to retain any records that are used for the purpose of completing tax returns for 6 years from the end of the accounting period to which the records relate. Even though it is your own business, and no one is going to ask you questions, it is still important to keep things documented and stored. It allows you to track your business properly and hence manage it the way you need to. We kindly invite you to try our Company Management Portal to store all your documents, bills, contracts, etc. This will be very helpful whenever you need to find a phone contract, insurances contracts, invoices, taxes, guarantees, etc.
How to try our Company Management Portal, you will have it directly and for free after forming a company with us, but if you have already your own company don’t worry you can have it also, just create a user profile and import your company. As easy as that!
Hard Work
Company Formation has its own benefits. You start from a little seed and once you are done, you have grown a full company on your own. This sort of reward comes from lots of hard work. It is easy to launch a business, but it is hard work that builds the business into Successful Empire, and we will support you to make sure you have the best options to make your company successful.
Establish Value between you and your team
Always develop the corporate values between your team even when it is very small. It becomes usually challenging when the team grows. Try to appreciate the hard work your team does and be kind towards them. Also, set up the expectations and know your own value from the very beginning.
Manage a team is not easy but we can give you some tips, information is power!
Backup plan
Once you are on track, you can monitor your finances and compare your goals vs your achievements. It helps you stay self-motivated throughout.
Even though things are going smoothly, you should always have a backup plan in case a new business sees its ups and downs.
In our Company Management Portal, you would be able to see the development in time and set up a forecast, what you expect to achieve in the first year.
Drawbacks of being your own boss
Being a boss or registering a business in your name has lots of benefits as discussed earlier. But every benefit comes with its limitations. The basic drawbacks of a Company Formation are:
- Unlimited Liability
- Low managerial experience
- Extra hard work to do
- Be available 24*7
- Unpredictable situations
- Unclear Practices
- No extra benefits for you, everything is reinvested in the company
- Risk of no salary (if you are in loss)
- No peace of mind
- Lower quality of personal life unless you are settled with new business
- No customer base – you need to create everything
New Enterprise Allowance
The UK government has started New Enterprise Allowance in order to help unemployed people to become self-employed. NEA provides money and support to start a new business if you are eligible for the benefits. The Job Centre Plus confirms if you are eligible for NEA.
Eligibility:
- 18+ years of age
- You get Jobseeker’s Allowance, Universal Credit, or Employment and Support Allowance
- You get Income support and you are a single parent, sick or disabled.
Benefits:
- You get a mentor to give you advice and support to start up a new business.
- May get a business allowance up to £1,274 over 26 weeks (once the business is setup)
- Can apply for a loan.