Starting your own limited company is both exciting and daunting. You need to consider many things before you even think about company formation. Below is a list of 10 things you ought to consider.
1. Money, Money, Money! As we discussed before it’s a common Company Formation Myth – You’ll Get Rich Quick. Starting a limited company is not a quick route to a large pot of gold, it takes hard work and dedication. It’s therefore really important to be passionate about your business. Don’t just start a business for the money or you’ll soon find yourself struggling with a business you don’t care about.
2. Do what you know – See point 1 – how can you be passionate about something you know nothing about? If you know what you’re doing and you’re passionate about it this will shine through and your customers will know it. The best businesses are run by people who are “experts” in their area and really care.
3. Don’t be afraid to specialise – remember the old phrase “jack of all trades, master of none” – if you specialise, you’ll be able to provide the best possible service for your customers and will gain a reputation for doing so. Combined with knowledge and passion, specialisation can lead to a truly superior business that people are happy to recommend to their friends, families and even perfect strangers!
4. Mixing business and pleasure. NEVER. You’ve heard it before, but often people go into business with their friends or family and end up falling out with serious consequences for their business, their relationships or both. Mixing business and please is never a good plan.
5. Getting a fresh perspective – despite point 4, there’s no harm in asking others for help. You might get complacent and over confident or be unsure of yourself. Support from friends and family might shed a fresh perspective or light on your situation. Whether it’s your initial business plans or your ongoing business activities in the future. This can be especially relevant if your friends or family are in the demographic or target market you are aiming for.
6. Finance – there may be more routes open to you than you might think. Completing a company formation to start a limited company may lead to many routes of finance. Often banks are more willing to lend to limited companies than other kinds of business. There are many options for finance for your business. Take a look at our business finance database for help finding finance and investment for your business.
7. Don’t forget to make a plan – it might be cliché, but having a business plan is an important part of starting a limited company as much as any other business. We recommend formulating a plan before even thinking about company formation.
8. Time – building a successful business takes time. Don’t expect to turn your idea into a success over night. It takes time to get noticed, build a customer base and start turning a healthy profit. Don’t be disheartened if things don’t go perfectly from the off.
9. Know your stuff! – In business, just like in everything else, ignorance of the law is no excuse. Be sure to do your research before you get started so you don’t get caught out with nasty fines or worse – criminal prosecution. Failure to do the right things could even lead to your company being struck from the register!
10. Know your market – Before carrying out a company formation to start your own limited company, we’d recommend undertaking detailed market research. Just because you think something is great, doesn’t mean other people will. You need to know your market, who you’re selling to, how much they’re willing to pay and how best to get their attention. Market research will help you get the most out of your business idea.
Related Reading:
- Market Research – Getting Prepared
- Business Start Up Myths – “I don’t need a business plan”
- Company Compliance – Avoiding Government fines
- Accounting Compliance – Fulfilling Your Duties With The Tax Man
- Business Finance – Top 10 ways to fund your new business
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