When you own a business, it will be an experience like no other. Here are several tips which can help you when you want to start a business.
1) Know what type of company you’ll form
If you don’t intend to hire other people because you will be the only employee, a Sole Trader should be formed. However, if you intend to have a sizeable workforce or wish to have only a couple of people on your pay role, you might prefer to form a limited company instead.
2) Come up with a suitable company name
Different rules apply to a company’s name. For example, a Sole Trader can contain the name of the person who formed it and the services which they will provide. A limited company’s name mustn’t have obscene words nor should it have any reference to a governmental department. It mustn’t infringe a trade mark and you should check with the registrar’s index of company names to see if it already exists. A limited company’s name has to be registered with Companies House and only after authorisation has been given that it can then be used.
3) Provide accurate information to Companies House
Three documents (Form IN01, Memorandum of Association and Articles of Association) have to be submitted to Companies House in order to register a company. Accurate information should be entered onto these forms because it won’t delay the registration process. A company can be registered by sending documents via the postal service and also online.
4) A company can be formed within twenty four hours
A same day application service is available. When registration forms are sent via post, Companies House will process the documents as soon as they arrive. However, the company formation process is even quicker when it is registered online because as soon as you submit them, Companies House will start to process the documents.
5) Someone can form a company on your behalf
If you haven’t owned a company before, you might not be confident that you can register a company. A Formation Agent can help because they can submit the documents to Companies House on your behalf. Communicating with Companies House at all times, you can concentrate on chasing leads whilst a Formation Agent registers your company.
6) Do your research
You should find out whether there is a demand for the services which you will provide. If you will sell goods or deliver services in a particular location, there might be other companies nearby who do exactly the same.
7) Create a business plan
An important document, a business plan demonstrates what your intentions are. Used when applying for a loan from a bank or building society, a business plan can maintain your focus because you will know what your aims and objectives are.
8) Do you need investment?
Your business might need capital in order to grow. Not only can loans be obtained from a bank or building society but also via private equity as well. Angel investment can be used to develop an idea and it is recommended that this form of investment is considered.
9) Don’t drag your heels
Once you have thought of a very good business idea, it should be capitalised on. After all, someone else might form a similar company and the aforementioned paperwork must be submitted to Companies House as soon as possible.
10) Don’t use a company before it exists
Only after Companies House has given authorisation does a limited company exist. To avoid added expense, you should wait until such approval has been given. However, when it does exist, it can start to make money.
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