Sunday, January 17, 2016

Key Things to Consider When Setting up a Company

By guest author John Stone

Working for other people can be a satisfying option at the beginning of one's career. As time goes by, however, more ambitious employees develop a desire to become business owners. Separating from your employer to found your own startup requires a certain level of preparation. The most important step during that process is figuring out what stages have to be passed in order to establish a functional and successful business.

How they will recognize you
Your name is your main distinguishing feature in the business world. It will pave the way for better recognizability and serve as perfect leverage for the process of business branding. So, when thinking about starting their own business story, a new entrepreneur needs to develop a strategy to come up with a proper name for their business.
In addition to the name, choosing the right domain is also an extremely important phase of a business-founding process. A creative combination of a business name and a domain could give your startup an enormous initial boost. Mashable has compiled the most useful tools for choosing a domain name; have a look at it here.

Choosing the taxation method
Depending on your business preferences and plans, you can choose from a variety of registration options. You can become a sole trader, in order to get all the taxation benefits that such a business structure can have, but in that case you are personally responsible and liable for each and every financial deal that your business makes. On the other hand, opting for a limited company frees you from being directly liable for the business itself. In such companies, owners and CEOs are paid like regular workers. However, it demands more administrative work and dealing with more regulations in general. Every country has its special taxation methods. For instance, the Australian Government has one of the most flexible taxation policies in the world, which makes this country a great choice for startup companies. 

Offers they cannot refuse
Showing up on the business scene has to be followed by a new value that your business is going to bring to the market. In order to come closer to your customers, you have to prepare offers they cannot refuse. No matter if it is a special discount for the first few hundreds buyers or a brand new product that makes a difference when compared to the others in the market, you have to develop a unique selling proposition. Otherwise, you will be another bleak and dim star(tup) in the web sky. Since this is the most influential decision a new business owner has to make, it is recommendable to gather different opinions, in addition to their own ideas. Different online platforms, such as Elance and Upwork could help you get opinions and recommendations from marketing and sales experts.

Cover legal issues
In addition to choosing the proper taxation method for your business, you also have to work in accordance with other law-related things. Firstly, you should always protect yourself legally when it comes to special licenses. For instance, if you want to open a restaurant, you have to get all the licenses that a place that prepares and sells food is required to have. Secondly, every collaboration with suppliers has to be defined in agreements and contracts. So, the most rational thing every new business owner should do is to acquire business legal advice before they actually launch the business.

Going your own way, business-wise, is the most exciting decision a worker can make. If you do everything in accordance with the advice more experienced people give, you will develop a successful business that will continue to grow in the time ahead. 

1 comment:

  1. Another informative article by John Stone.
    I've set up a sole tradership, so much of what he says rings a bell with me.


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