Tag Archives: Business Startup

5 Reasons To Start Your Own Company

start-a-company-sucess2011 has just started and we’ve all made New Year’s resolutions, perhaps you’ve been thinking about starting your own business, but for whatever reason that didn’t make it onto the list. There’s no need for it to just be a dream. You could own and run your own limited company and you could get started today. Here are 5 reasons why you should!

Be Your Own Boss

You’re stuck in a dead end job, unappreciated and undervalued. Perhaps you’re just working to make ends meet. Starting your own business, you could do so much more. Being your own boss would give you the freedom to follow your dream, do what you really love and do things your way.

Starting a limited company would protect you from unwanted liability and allow you to take advantage of the tax free benefits offered by the limited company form – cutting down costs and increasing the money you could potentially earn through your business.

Money, Money, Money

Of course we all want more money. Starting your own limited company, you’re more likely to make more money in the long run. No longer will you be spending all your time lining someone else’s pockets, your hard work will pay off and you’ll be able to reap the financial rewards. We’re not saying it will be easy, but the effort is certainly worth it.

Change Your Life

No more 9-5 in someone else’s offices, no more long commutes, no more jumping through other people’s hoops. Starting your own business will change your life. You can set the goals, work the hours you want to work and follow your dream.

Your Future

Carrying out a company formation allows you to start a business which is a separate legal entity from yourself. This means that your business will survive into your future and be a part of it. Even if you decide to retire, your business will live on. Starting a company is an investment in your future. The effort you put into your new company will pay rewards in the long term.

It’s FREE!

Forming a new limited company through us is not only easy, it’s quick as well. We’ll register your company within a few hours. Usually company formation is completed on the same day and best of all our service is completely FREE!

Business Start-Up Myth – It’s hard to get a bank loan

business-start-up-financeAnother business myth that often rears his head is to do with business start-up finance. People say it’s hard to get a bank loan to start a business. This myth is reinforced by recent research carried out by the IoD which suggests that 60% of directors have been rejected by banks when seeking finance yet clearly this is not always the case. Many people rejected by bank lenders have no form of guarantee or little equity. Shoddy business plans might well be to blame also.

With the current state of the economic climate, the new coalition Government are keen to encourage the banking sector to lend more freely to SMEs and business start-ups. Pressure is mounting to give financial support to the small businesses in the UK which are the life blood of the economy.

Bank loans for business start-ups

Getting a bank loan for a new business start-up might not be a difficult as you imagine. With a well drawn up business plan and the proper company documents, as well as some form of equity, banks will be far more willing to lend to new businesses. More often than not, new limited companies find it far easier to gain finance than any other form of business as lenders are far more willing to invest in this legal structure. Consider carrying out a company formation to start your new business to make the most of this and other advantages of limited companies.

Finance alternatives

New businesses should bear in mind that bank loans are not the only avenue for business finance. There are plenty of alternatives, some easier and some harder ways to acquire finance, each with its own merits. Take a look at our previous article “Top 10 ways to fund your new business” for more information. Government grants, factoring and regional growth funds are just a few examples. If you are willing to let others get involved in your new business, you may also want to think about venture capitalists and business angels.

Business Start-Up Myths – It takes years to start a business


How long does it take to start a business?

Often, people assume that it takes years to start a new business. In truth it can take just a matter of months. Most businesses start-up within around 6 months and are trading nicely around that time. This doesn’t mean that you should rush things. The first few years of business are risky enough, without rushing into business with minimal planning and thought.

Plan carefully and make the right decisions and you could soon be running your own business and building your empire.

Clearly the length of time it takes to start a business will necessarily vary between industries and your chosen undertaking. Starting a business from home will be far easier and take less time to setup and get running than starting a manufacturing business or opening a new restaurant.

The things that might take the time are:

  • Making the business plan
  • Finding a suitable business location
  • Acquiring finance and/or loans

Having said that, actually starting a business still takes far less time than making a profit, which can take a fair bit longer, as the business finds its feet and starts to get a slice of the pie.

Getting started today

Using a trusted company formation agent like The Company Warehouse allows a new business to take advantage of quick registration services. Fast online company formation, quick VAT registration and PAYE notification are just a few examples of how we can help you get started quickly.

If you’re keen to get started in business we can help you further with a little advice and guidance on acquiring finance to get your business off the ground. Take a look at our Top 10 Business Finance Methods blog article for more information and useful tips.

Advantages and Disadvantages of a Sole Trader


When thinking about opening your own business, you might well have given some consideration to becoming a sole trader. Sole trader, also known as a sole proprietor is one of the types of business available for use within the UK. It is also one of the most popular, for a number of reasons, including the ease with which a business can be set up using this form. However, there are pitfalls to be aware of.

A sole proprietorship is a business owned one person, who has full control of the business and how it is run. They also own all the assets of the business and any profit that it makes. In the same vein, they are also responsible for all the debts and liabilities the business accrues. A sole trader is expected to register as self employed with HM Revenue & Customs and will be required to submit an annual self assessment, but generally speaking their accounting requirements are less onerous than those of a limited company.

It is a common belief that setting up as a sole trader is the cheapest option for starting a new business. However, with our FREE company formation offer, there isn’t much in it and as you can see from our article on the advantages of a limited company, in most cases it is preferable to set up a limited company, rather than as a sole trader.

Advantages of a sole trader

Sole traders benefit from the following advantages:

  • Control - Sole traders maintain full control of their business. Running it how they please without the interference of others.
  • Profit retention – Sole traders retain all the profits of their business.
  • Private data – Information about sole traders is kept private, unlike that of limited companies which is necessarily made public after registration with Companies House.
  • Specialist – Often a small business, sole traders can offer a more personal service with local roots and ties. This can be more appealing to potential customers in the local community.
  • Personal – Because there is no need to confer with other decision makers, sole traders can make decisions quickly and act on them swiftly, providing for the needs of their customers.

Disadvantages of a sole trader

Just like any other form of business, being a sole trader can also have its disadvantages.

  • Liability – sole traders are not seen as a separate entity by the law. Therefore, they are subject to unlimited liability. This means if the business gets into debt, the business owner is liable. In the worst case, this may mean a person risks their home, personal savings and any other assets they have both in and outside of the business.
  • Finance – sole traders often find it difficult to raise finance to fund their business. They may struggle with expansion in the future.
  • Reverse economies of scale – sole traders will be unable to take advantage of economies of scale in the same way as limited companies and larger corporations, who can afford to buy in bulk. This might mean that they have to charge higher prices for their products or services in order to cover the costs.
  • Decision making – all decisions must be made by the sole trader. There is no room for help by others. So the success or failure of the business rests on one person.

As you can see, there are several advantages and disadvantages to starting up a business as a sole trader. Whether it is the best choice for you is a personal matter and varies depending on the type of business you are looking to start. Whatever you decide, here at The Company Warehouse we offer a number of services to help new businesses thrive. Why not take a look around our website today and see how we can help you get your business off the ground!

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