Starting up an independent business is a dream for so many people worldwide. Most people know the struggle of having to do everything that your boss asks you to do, even if it involves long weekly working hours, staying later than you were meant to, and completing tasks that you don’t want to. If you have your own independent business, then all of these issues go out of the window as you’re allowed to work the hours that work for you and you can delegate the jobs that you don’t want to complete to your employees. This gives people much more freedom than they would have if they were an employee which makes it appealing to so many people. The only reason that most people who dream of having an independent business don’t have one is that it’s a lot of work to be successful. To be able to run an independent business you need to have an in-depth knowledge of many areas including legal issues, finance issues, sales and marketing issues, and human resources knowledge. Whilst there is a lot to learn to be successful, in recent years more people than ever have been able to start up their own independent business and start living the life that they want to live. We’ve created a complete start-up guide with the best advice for you if you want to start up your own independent business.
Prepare Yourself for the Workload
Starting up an independent business is no easy task if it was everybody would do it. In the initial period of setting up an independent business, there will be so much work for you to do, including some things that you’re probably not yet aware that you’ll need to do. It will take up a lot of your time initially and it’ll also be really expensive so make sure you’re aware of the situation. Some things that you’ll need to consider when starting up your independent business is you’ll have to have raised enough capital prior to finance everything the business does, and you’ll need the right balance of money invested in assets and cash flow as cash flow issues can destroy a company. You’ll also need a great idea and a unique selling point for your business, you’ll need to find some great employees who suit your business, and you’ll have to get your business out there to potential customers. Whilst it is a lot, it is doable as long as you have a solid plan for the future of your business and can manage your time well to deal with all the work you’ll need to be doing.
Register your Business as a Corporation or an LLC
If you start your business as a ‘sole proprietorship’, this is a big risk as it holds you liable for any debt that the business incurs which can put you and your personal assets at risk. You should always form your business as a corporation, there are several to choose from. The most popular is an S corporation as this type of corporation is the best option for great tax treatment. A-C corporation, this type is what most investors look out for, so this is great if you’re trying to raise capital and a Limited Liability Corporation. Luckily, it is cheap and easy to register your business as any of these corporations. This is a great first step in protecting yourself but there are some additional actions you should take for additional security. You should always use the corporation’s name on any documents as this clearly highlights that you and the business are separate entities and should be treated that way, this also applies to signatures. In addition to this, you should keep all funds separate, taxation separate, and any corporation transactions should be completely separate from your individual transactions.
Name and Website
Picking a name for your business is a really important decision as it helps to form people’s first impression of the business. Choosing a business name can be tricky as there are many rules associated with what you can call your business, the whole list can be found online. Legal issues aside, it is also important to choose a name that is consumer-friendly. You should never pick a name that is difficult to spell or pronounce as this will put people off shopping with your business, and you also shouldn’t pick a name that could potentially limit your business as it grows. The best thing to do is to narrow your choice down to 5 potential names and test the name with a focus group, with potential employees, with partners, and with potential investors. Whichever name gets the most positive response will likely be the best name for your business.
Having an amazing website is vital in our current society as any potential investors or clients will check for a website first and this will massively impact their first impression of your business. Knowing your website will be looked at is great as it’s another way for you to demonstrate the value of the business. Web design can be difficult if you have no experience in it, but as it is so important, we believe it is definitely worth outsourcing the work and there are some great options for web design in Manchester to have a killer website made.