Starting a small business is not as hard as it used to be. There is no need for lawyers, accountants, or a four figure budget. While it may be simple to start a small business, it’s only easy when you know how. In this article we explore how to get started with your very own small business.
Sole Trader Or Limited Company?
When you start a small business you will generally be looking to start off as a sole trader, a limited company or a partnership. Started as a sole trader or a partnership has no costs. If you are starting as a partnership you may choose to write a partnership agreement which will govern the relationship between the partners. If both partners will be equal in all ways – in terms of equity, employment and investment – this is probably not necessary.
Starting as a limited company will cost more than the other options to get started. However, there are advantages to this that will outweigh the costs for most entrepreneurs with a serious vision for their company. As a limited company, you will not be held personally liable should your business be taken to court. If you go out of business, you will not have to pay any debts that your small business owes. As a limited company you will also appear more professional.
DIY Accounting
In the future, when revenue comes in, or you raise a round of financing, you will be able to do your accounts on your own. For now, however, you should be able to do them yourself. When your revenue reaches a certain figure, and if you own a limited company, you may have to use the services of an auditor when it comes to your end-of-year accounts. This does not apply for a small business.
You may wish to use an accounting software package. Sage creates products that are relatively cheap, and simple to use for someone who has not been trained in accounting and bookkeeping. You could also choose to keep your accounts in a spreadsheet software package or even on paper. This approach will be cheaper, but the data will have to exported to a software package at a later stage should your business succeed.
Website Design, Logo & Stationary
When it comes to getting your company stationary and website designed, you will be able to save lots of money through outsourcing this work to a company based overseas. While you may have to pay £20-£100 an hour for graphic design services in the UK, you will be able to get work done in countries in the developing world for a fraction of that price.
Although it may be tempting to use the services of your local printing supplier, or even to power-up Microsoft Paint and give it a go yourself, it is highly advised that you avoid this. Consumers can usually tell the difference between a company that is professional, and a company that cuts corners. When you go for the DIY option, you clearly fit into the later category.
CityLocal’s small business directory is the UK’s favourite way to find information about local businesses online. CityLocal has a franchising opportunity available for motivated entrepreneurs. www.citylocal.co.uk & www.citylocal.ie.
Sole Trader Or Limited Company?
When you start a small business you will generally be looking to start off as a sole trader, a limited company or a partnership. Started as a sole trader or a partnership has no costs. If you are starting as a partnership you may choose to write a partnership agreement which will govern the relationship between the partners. If both partners will be equal in all ways – in terms of equity, employment and investment – this is probably not necessary.
Starting as a limited company will cost more than the other options to get started. However, there are advantages to this that will outweigh the costs for most entrepreneurs with a serious vision for their company. As a limited company, you will not be held personally liable should your business be taken to court. If you go out of business, you will not have to pay any debts that your small business owes. As a limited company you will also appear more professional.
DIY Accounting
In the future, when revenue comes in, or you raise a round of financing, you will be able to do your accounts on your own. For now, however, you should be able to do them yourself. When your revenue reaches a certain figure, and if you own a limited company, you may have to use the services of an auditor when it comes to your end-of-year accounts. This does not apply for a small business.
You may wish to use an accounting software package. Sage creates products that are relatively cheap, and simple to use for someone who has not been trained in accounting and bookkeeping. You could also choose to keep your accounts in a spreadsheet software package or even on paper. This approach will be cheaper, but the data will have to exported to a software package at a later stage should your business succeed.
Website Design, Logo & Stationary
When it comes to getting your company stationary and website designed, you will be able to save lots of money through outsourcing this work to a company based overseas. While you may have to pay £20-£100 an hour for graphic design services in the UK, you will be able to get work done in countries in the developing world for a fraction of that price.
Although it may be tempting to use the services of your local printing supplier, or even to power-up Microsoft Paint and give it a go yourself, it is highly advised that you avoid this. Consumers can usually tell the difference between a company that is professional, and a company that cuts corners. When you go for the DIY option, you clearly fit into the later category.
CityLocal’s small business directory is the UK’s favourite way to find information about local businesses online. CityLocal has a franchising opportunity available for motivated entrepreneurs. www.citylocal.co.uk & www.citylocal.ie.
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