Starting up a Business 101 - IV

Business? See whether you relate to any of the following most common reasons people give for starting up in business:

·         Being able to make your own decisions

·         Having a business to leave to your children

·         Creating employment for the family

·         Being able to capitalise on specialist skills

·         Earning your own money when you want

·         Having flexible working hours

·         Wanting to take a calculated risk

·         Reducing stress and worry

·         Having satisfaction of creating something truly of your own

·         Being your own boss

·         Working without having to rely on others

The two central themes connecting all these reasons seem to revolve around gaining personal satisfaction, which can be seen as making work as much fun as any other aspect of life, and creating wealth, which is essential if an enterprise is going to last any length of time.

Even when your personality fits and your goals are realistic, you have to make sure that the business you’re starting is a good fit for your abilities.

Business Assets

Safeguarding Your Business Assets

When you think of your business assets, you probably think first and foremost of your equipment or machinery, company cars, and so on. It’s important to make sure that all those assets are looked after and insured, as well as protected by alarms and locks to cut down the risk of damage or loss. However, if you’re in the business of inventing things or coming up with new ideas or you have logos or symbols that are a vital part of your business brand or image, those intangibles can be valuable assets. You can take care of most material assets, such as premises and computers, with insurance, but assets that fall under the heading of intellectual property are a lot harder to protect but even more damaging to lose.

Protecting your name

A rose by any other name may smell as sweet, but would your business be as successful if it was called something else? If you’ve worked hard to build a good reputation and your customers keep returning and sending referrals, your name is vitally important. For that reason, you don’t want anyone else using it and perhaps tarnishing it by selling inferior goods or services to the ones you provide. If someone is in competition with you and tries to use the same or a similar name as yours, you can take them to court and claim that they’re passing off their products as yours.

Of course, the last thing you want is to get involved in costly court proceedings, and you have to be sure that you have a good case. For example, the other company may not realize that another company with the same or similar name is doing a similar line of business. Try to negotiate before taking court action, but don’t wait too long before taking action or your good reputation may be lost.

Starting up a Business 101 - Employees

Taking on Employees

One of the most important decisions for any business owner – whether he’s a sole trader, in a partnership, or operating as a limited company – is when to take on employees. One minute everything is ticking along nicely, and then suddenly you have too much work to cope with and you need help. You have to make sure that you don’t do anything to contravene those rights, or you may find that your employees can make a claim against you at an employment tribunal. If the tribunal finds in favour of your employee, you can then face a bill for compensation.

Right from the moment you decide to take on a staff member, you have to stay on the right side of the law. If you need to talk things over with someone before taking the first steps, an adviser at Business is a good place to start.

Starting up a Business 101 - III

Working as a sole trader

Are you going to go it alone? You can establish yourself as a sole trader very easily. You don’t have to fill out a lot of forms, and you’ve got only yourself to answer to.

Most people who work on a freelance basis are sole traders, doing what they know best for a range of clients, as and when those clients need their services – say, a photographer who wants to work for himself rather than an employer. You can leave your job, make up a portfolio of your work or a brochure advertising your particular skills, and market your services to anyone you think might pay for them.

As a sole trader, you make your own business decisions; you answer only to clients, and the profits (and any losses) you make are yours. If you do make losses and run up debts, you’re personally responsible for those debts. If things go badly wrong, you may ultimately have to sell some possessions, perhaps even your home, to pay off your debts. Basically, as a sole trader, you’re running your business on your own. If you expand, you may decide to take on other people to work for you – as employees or as freelancers on short-term contracts – but the business is yours.

Most sole traders are self-employed and are taxed as such by the regulated and appropriate tax office. You need to register with the regulated and appropriate tax office within three months of starting up. You can find more information on its Web site or from your local tax office, which is listed in the phone book.

You have to be careful because if you’re a sole trader and you do most of your work for just one client, the local tax office may not accept that you’re self-employed. It may decide that you’re an employee of that client.