Some guidance for setting up a smaller company
by Natasha Christou Digital Marketing ConsultantThe idea of setting up your own business appeals to many in the
UK. Recent surveys have discovered that 70% of us have deliberated the idea and
four out of five 16-21-years-olds have the ambition to one day become their own
boss. In 2017, there were 5.7 million private sector businesses, which
represented a representing a four per cent rise from the year before. However, it’s
perhaps surprising to find that 80 per cent of new businesses fold within their
first 18 months.
Whether it’s a side hustle or a full-time project, there are
so many businesses starting up. But as a huge number are ultimately failing,
we’re here to look at the laws you must follow and how to give your business
the best chance of success through advertising.
Registering your business
At the start of your business’s life, you must register it.
Most owners will register as a sole trader, limited company, or partnership.
While it may be easier to set up as a sole trader, this deems you responsible
for any debt the company may build up and leaves you in charge of certain
accounting issues.
On the other hand, a limited company lets you separate your personal
finances and business assets. This too is easy to set up yourself, but many
prefer to seek the assistance of a professional figure such as an accountant as
there are a lot more reporting and management responsibilities involved.
It’s sensible to go down the route of a partnership if
you’re going into business with someone else. This is the simplest way to set
up your new business if there are two a more people involved.
Licensing
Sometimes, licensing can be a section that is overlooked
when a small business is being set up. Certain small businesses may not require
a licence, but you should always check at the earliest opportunity to avoid
fines or being shut down before you’ve really began.
A licence is also required if you plan to play music, sell
food or trade in the street. Use this Gov.uk tool to find out which
licences your concept may require.
Insurance
Business insurance is needed so that you and your company are
covered against any unexpected costs. It doesn’t matter if you run a large
multinational company, a small business, or are self-employed, it’s important
to find the right insurance for you. For example, dog
grooming business insurance will greatly differ from catering insurance or
retail insurance, so be sure to properly research your options.
Liability insurance will protect you against any damage,
mistakes and legal costs. Certain insurances are required by law, such as
employers’ liability insurance. This will cover the cost of any injuries or
illnesses any employees may suffer due to work. Elsewhere, if your company will
be using vehicles, you must have commercial motor insurance, while some
professions must also have professional indemnity insurance that has been
provided by their professional bodies or regulators.
Commercial property and cyber insurance are examples of
policies that are optional, but they could be worth purchasing depending on the
nature of your business. If you are going to be working from home, while it’s
not a requirement to have business insurance, you should consider updating your
home insurance as you’ll need to have the appropriate commercial property
insurance.
Being an employer
If you plan on hiring staff members, there are several
points to consider. Firstly, how much will you be paying? Remember, it has to
be at least the National Minimum wage and you must set up their National
Insurance payments. It is worth noting here that you’ll be able to claim an
allowance to reduce your bill. You must also make sure that they are actually
legally entitled to work in the UK, so don’t just presume — be
sure to do thorough checks, including a possible DBS check if needed.
As mentioned previously, there’s also employment insurance
and you’ll need to write up a legally binding statement of employment for
anyone who will be employed for longer than a month. HM Revenue and Customs
must also be informed via registering as an employer.
Publicity
After the legalities have been ironed out, it’s important to
correctly advertise your services or business if you want to succeed. A solid
marketing plan is crucial in order to outline where you want your business to
go and how you can progress. It will look at how much advertising will cost. A
great cost-effective way for any local start-up to take advantage of is door to door leaflet
distribution.
According to research, nine in 10 people can remember
receiving door-drop mail. Of this group, almost half confirmed that they keep ahold of
these leaflets, making it an effective method of advertising if you utilise it
correctly. It’s recommended that you keep your content simple, include your
business name and logo, telephone number, email address and the service(s) you
are offering.
Another cost-effective method of promoting your business is newspaper
advertisements — so long as they have been properly written. Make sure you
don’t neglect your online presence, either. This is a significant area in
advertising at present, and social accounts are a great way to promote your
business to your intended audience.
If you’re planning to open a new office space, outdoor
banners are a great way to direct the public’s attention towards your
business. These relatively cheap and durable displays can be used outside your
workspace and research has found that the majority of a local business’s
regular customers live within a five-mile radius of where you are based. This
means that each potential customer could see your banner up to 60 times each
week.
You must make sure you plan thoroughly if you decide to set
up your own company and want the brand to be remembered for all the right
reasons. By fully researching the above points, you will stand yourself in good
stead from the offset.
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Created on Oct 28th 2019 03:44. Viewed 588 times.