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Setting Up A Small Business

Are you thinking about to starting up your own business? If you are then you are not alone. More and more people want to become their own boss which is hardly surprising these days. The thought of not having to answer to anyone, working your own hours, making your own business decisions and working from home are just some of the reasons why you might want to start your own business. Also people start up business because they have a new idea or invention that they want to share with people and make a living out of their passion.

Setting up a new business in the United Kingdom is a relatively straightforward process. It is important that you understand any legal requirements for your business. Are you going to be a Ltd, a Partnership or an LLP, a Plc, or a Sole Trader? Do you understand the requirements of each type of organisation? If you don’t, then you should do some research in these areas so you know what your getting your self into.

You may be wondering about VAT and whether you need to be registered to pay VAT. Some people set their business up and don’t think about VAT until the businesses turnover over is close £70,000 per year. Once your companies turner is over £70,000 then you will be legal obliged to register to pay VAT (value added tax.) registered. Once you are VAT registered you must pay all the VAT you receive on your sales to the Inland Revenue. Also businesses can claim back any VAT from any purchases that have been made through the company.

Another aspect that needs to be sorted out is insurance. Every company that is set up in the United Kingdom is required by law to take out compulsory insurance. This insurance is to protect any employees, or anyone else involved in the event of a claim. You will also need to appoint a Company Secretary and at least one Director for the business. This is an obligatory legal requirement.

Another very import aspect of starting up a new business it finance. You should consider what the money will be used for and exactly how much you require. If you under fund your business, then it will fail. If you over fund your business, then any repayments you have to make could place a heavy burden on your profits.

Take the time to determine exactly what the money will be used for. If you have a business plan this should give you a very good idea how much business finance you will need to raise and what it will be used for. Some particular uses that entrepreneurs use available funds for are as follows:

o Salaries

o Building rental or mortgage.

o Production costs

o Sales cost.

o Purchasing fixed capital equipment or expansion project.

o Project development costs.

So how do you go about getting business finance? Well here are some of the options:

o Option 1: Your Life Savings

The first thing you should consider is your own savings.

o Option 2: Borrow from Friends and Family

After dipping into their own cash reserves, many entrepreneurs turn to friends and family for help.

o Option 3: Borrow from Credit Cards and Loans

This is a very expensive way to fund your business and you will pay over the top in interest charges. Unless your business takes off like a bat out of hell, you will be drowning in a quagmire of debt. If your business suffers a downturn, then there is no avenue left other than bankruptcy or an IVA.

o Option 4: Re-Mortgage or Second Mortgage

In today’s market, bank loans are next to impossible to get if you don’t have good security and an equally good track record of business success.

o Option 5: Grants

Grants from a variety of sources may be available to you. There is a lot of grant money available from a variety of sources and it is worth researching to see if there is anything about you or your business that could qualify for grant funding.

o Option 6: Business Angel or Private Investor

A business angel or private investor is typically a high net worth individual who invests in start up ventures for a share of the ownership or a better rate of return on their money than they would otherwise earn from a bank or other saving scheme.

o Option 8: Venture Capitalists

Venture capitalists typically get involved in larger funding efforts. Most venture capitalists do not get involved with any business for less than £500,000.00

There are loads of companies that offer Loans, Grants, Venture Capitalists or Business Angels. Do some investigations and find a good trust worthy company.

How To Build The Right Online Business Mindset For Day Job Employees

Talk to majority of employees and you’ll find some of them would definitely come up with a dream of starting their own business. Since I’m building an online MLM business, I can relate these few points in building the right mindset in any business.

1. Business Is Not Employment

If you are still working with other people, do not treat your business like your job.

In the office, you will most likely be told to do your own tasks or assignments and they’ll be people setting up goals and directions for you. These goals and directions will align with the company growth – not your own personal financial growth. So, what plans do the company have for you? Not much!

However, in building your online business, you have to set your mind about where, when and what you want to achieve in life – meaning that goal setting-and-getting is your job.

You have to set your goals, strategize and work towards getting those goals on your own (with the help of your business team, of course). There will be no one forcing you to do any specific tasks in an online business and you won’t get penalized for not completing your tasks – but you have to remember that your income in any online program will not grow if you don’t grow.

So, treat your online business as your future investment.

2. Doing Half-heartedly Doesn’t Count

What’s the worst that you can get if you work half-heartedly at job? Not much if your boss doesn’t know that you are not giving your 100%. As long as you can deliver what’s expected from you, you are safe. Come back tomorrow and you are still at work.

It can be tough at times when you build an online home based business while still working – not only in terms of consistently getting the income but also in terms of giving attention to your business.

I still remember a quote from Robert Kiyosaki on a website. He suggests to keep your daytime job while starting a business part time mostly because of the experience. He says, “Not only will you learn about business, you will learn a lot about yourself,”

Since you already make certain amount of money every month from your job, a little income from your home based business seems trivial. But, it will grow bigger once your business starts to grow big.

However, this does not mean that you will put only a little effort in growing your business.

You would probably have heard that most wealthy people work harder than those who have jobs, but how do you build a business when you are still at work 9 to 5?

The key is to keep yourself disciplined and do the right things to grow your business consistently. If it takes 2 to 3 hours a day from your spare time to
build your business, then use those hours effectively to build your business.

Doing the right things for your business only for 2 to 3 hours a day does not mean you are doing half-heartedly. It means you’re giving a 100% on a limited half-time you have for your future.

3. Grow yourself more than you grow your business

That is right!

You can grow your business to a million dollar empire but you should know that your first million can go down the drain overnight because of a lot of factors.

What do normally business people do when that happens?

They get back up and build a bigger business because they are equipped with what it takes to be successful.

This includes sharpening your skills in networking, sales, communication and other areas of personal growth.

Most people with employee mentality will probably feel frustrated and unmotivated with failures and give up the first time business turns sour. They do not know what to do next when it happens.

Well-equipped business people know that failures are just temporary. It is like a stepping stone for them to elevate to a higher ground.

The friendship, self-motivation, business networking and sales skills will take them anywhere they want to go and build a new business in a more powerful way. The last temporary hiccup was actually their biggest lesson for them to grow to even smarter entrepreneurs.

Even when they are successful, they will keep on learning to grow themselves for greater challenges in the future.

In short, great business leaders are life-long personal development students.

Now, let’s close it by a quote from Jim Rohn that I love so much.

“Formal education will make you a living; self-education will make you a fortune.”

Interpret it well and it won’t be surprised why the most respected business philosopher, Jim Rohn himself, said like that about personal development.