Some of us baulk at the prospect of setting up a new company. In comparison, being a self-employed sole trader could seem like a walk in the park! The truth is, setting up a new business isn’t that hard to do.
It’s a shame that so many of us think that starting a company is so hard or complicated. In reality, the process is straightforward and can get summed up in five simple steps. If you toyed with the idea of getting incorporated, here is what you need to do:
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Create a business plan
The first thing you need to do is set out the groundwork for your new enterprise. It’s one thing wishing to set up a company. But, it’s another to know how to shape it and make it grow! Many people take the view that a business plan is only needed to get finance.
In reality, the idea of a business plan is to keep your business on track. It sets realistic goals of what you aim to achieve both now and in the future. And it also lets you aim for achievable milestones.
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Decide on a legal entity for your company
You might think that there is only one form of company that you can set up. The truth is; there are several! Before you get incorporated, you should consider which legal entity is best for you.
I recommend taking the advice of an accountant or business mentor before you decide. That way, you can make an informed decision and choose the best option for your business. Otherwise, you risk wasting a lot of time and money by choosing wrongly!
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Think about where you wish to trade
Companies trade from all kinds of locations. Some get based at retail stores while others lease some office space. A few entrepreneurs start small and even use their home addresses!
The location of your company will have an effect on your profit. For instance, an inner-city or town offers more opportunities than rural locations. You’ll need to consider the types of customers you’re likely to have and where they come from. Only then should you decide on your physical location.
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Register your company
Now it’s time to make your new business official! There are several routes to company formation that you can follow. For instance, there is the DIY method. You could even use a provider that handles company registrations for other people.
In some cases, you might even wish to register your company through your accountant. This option might make sense if you’d rather they handle all legal aspects of your business for you.
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Start trading
Once your company is official, it’s time to start making some money! It’s crucial that you follow your marketing ideas from your business plan from day one. Right now, you’re not making any money, so you need to start generating revenue soon.
Thanks for reading today’s blog post – and good luck with your new company!
