| In today's economic climate many people are | | | | happen. |
| wondering if now is the right time to start their own | | | | Limited Company |
| business, but if you have been made redundant (or | | | | This is a business with Ltd or Plc after its name. If a |
| think you might be) then it can be a great opportunity. | | | | company is set up in this way then there is limited |
| There is also a school of thought that if you can make | | | | liability, which means that personnel assets are usually |
| a new business successful in today's economic climate | | | | kept separate from the business assets. Limited |
| then you probably have a great business idea! | | | | companies must be registered with companies house |
| Starting your own business doesn't suit everyone. | | | | and must have at least one director. Limited |
| Sometimes it can mean working long hours, evenings | | | | Companies are more legally complicated than sole |
| and weekends or working alone. But, depending upon | | | | traders or partnerships, the taxation is different and |
| the business, it can also mean having the freedom to | | | | there is public access to the company accounts. |
| choose your working hours, fitting in around family | | | | Going Concern |
| commitments for example. And the rewards can be | | | | Buying a business that is already established and |
| great. Growing your own business from the ground up, | | | | running can be a good option. The assets, customers |
| experiencing success and the financial rewards that | | | | and employees are already in place and the track |
| go with it are exhilarating feelings. | | | | record of the business should make it easier to raise |
| So, if you think this might be the route for you here are | | | | finance. Before you buy a going concern make sure |
| a few of the main types of business you should be | | | | everything checks out by having a professional go |
| considering. | | | | through the accounts. At the end of the day you need |
| What sort of business? | | | | to make sure the business will be able to support your |
| Sole Trader | | | | cost of living. |
| If you decide to work on your own then this is | | | | Franchise |
| probably the easiest way to set up a business. You | | | | This provides an opportunity to buy into the right to sell |
| will need to notify HM Revenue and Customs (HMRC) | | | | a companies goods or services. If the franchise is well |
| within 3 months, otherwise you are liable to a penalty. | | | | established you will have the benefit of a well known |
| For Tax purposes being a Sole trader is probably the | | | | name and brand awareness with potential customers. |
| easiest when it comes to Income Tax and it's also | | | | The Franchisor will provide support and an established |
| fairly simple to start up or indeed shut down if things | | | | method of doing business. Costs of buying into a |
| go wrong. However, you will probably need to finance | | | | franchise vary depending upon how successful they |
| the business yourself and you will be liable for | | | | are and what sort of income you can expect to |
| everything if you get into debt, so your personnel | | | | generate and you need to remember that you will |
| assets could be at risk. | | | | nearly always have to pay a monthly management |
| Partnership | | | | fee to the franchisor. Before you sign on the dotted |
| Partnerships can have full partners, who work in the | | | | line, it is always worth talking to other franchisees |
| business alongside each other or sleeping partners, | | | | about the business and income. |
| who have simply invested money in the business and | | | | No matter what type of business you decide is right |
| take a share of the profits. Setting up a partnership | | | | for you it's a good idea to find yourself an accountant. |
| can mean that you have more money to start the | | | | Finding an accountant before you actually start your |
| business, more skills to run the business and a shared | | | | business can save you time and money. Most |
| workload (unless you have a sleeping partner). | | | | accountants will offer you business start up advice |
| However, if the business fails and one of the partners | | | | and will guide you through the setting up process. If you |
| decides to disappear then the remaining partner would | | | | are buying a Going Concern they will go through the |
| be left to pay all the debts. This risk can be minimised | | | | company books to check the figures match those |
| by setting up the business as a Limited Liability | | | | provided by the seller. Having an accountant from the |
| Partnership. It is also worth drawing up a partnership | | | | start also means that you can concentrate on making |
| agreement so that if the partners do fall out then there | | | | your business a success while they get on with the |
| is a legal document stating what can and can not | | | | paperwork for you. |