A limited company is privately owned with the main contractor being legally responsible for its debts. Limited companies also have their own legal identity, excluding both directors and shareholders.
The first initial stage of becoming a limited company is by going through the company formation process. Once company formation is complete, the next step is to register an office address (if you have one). Once you have a registered office address, important mail will be sent there such as notices and reminders related to the company.
Although starting a new business can be exciting, being the owner of a limited company means putting in a lot more work – creating a successful company doesn’t happen overnight. We’ve compiled our top tips for anyone who’s wanting to start their own limited company.
Think Through Your Business Plan
Being the sole contractor of a limited company means that you’re the main shareholder and company director, meaning there’s a lot to think through before you embark on this journey.
No matter how small a business is, it must have a structure in place in order to succeed. In most cases, business owners don’t have experience in everything that a company requires, such as financial matters like tax and insurance issues.
If you’re the owner of a limited company, you’ll need to maintain full control over everything, which could prove difficult after some time. Sitting down with yourself and thinking through your business goals and conducting whether it’s likely you’ll reach them with the plan you’ve set is a great way to conclude whether your business idea will work.
Remember to be realistic – don’t set yourself too many tasks at once but don’t underestimate your skills at the same time. Coming up with a business name, deciding on brand identity and taking care of digital marketing and social media are a few of the various roles you’ll have to perform.
Learning Everything You Need to Know
Even if you think you have a high level of expertise and years of knowledge and experience behind you, taking advantage of free resources, online tutorials and business programmes could be extremely beneficial for both you and your business.
Following fellow entrepreneurs, business leaders and influencers on social media is an additional way to heighten your knowledge. Blogs, articles, business guides and podcasts are other alternative ways to absorb information.
Pushing yourself to constantly learn new things as a business owner will benefit both employees and potential customers.
Being a private limited company means every aspect of the business must be done by you. At first, this could seem relatively easy, especially if you remain a small business for the first few months.
Once your business starts to grow, financial matters, content creation and general customer care could end up becoming complicated and timely.
Hiring an accountant or bookkeeper could be beneficial for your ever-growing business, leaving you with more free time to focus on important things like career goals and targets instead of having to keep on top of finance-related issues.
Why Accountants and Bookkeepers are Important
Both accountants (also known as accounts clerks) and bookkeepers work towards a similar goal, which is to ensure your business survives financially.
Accountants help businesses create precise reports on cash flow, as well as make sure employees are registered on to payroll and deal with all things tax related. Having an accountant is beneficial for a number of reasons, one being if you ever need to take a loan out in the future, an accountant will get in contact with the right people and offer professional advice.
Besides keeping a record of income and outgoings of the business, bookkeepers store receipts and invoices whilst taking care of time-consuming tasks that involve the business bank account.
Using a variety of methods including specially designed software to keep track of your finances, accountants and bookkeeping professionals are able to stay on top of your affairs more accurately compared to you doing it alone.
Making sure you stay in compliance with government guidelines is crucial, but also something that’s difficult to keep track of – this is another reason why having an accountant or bookkeeper as an extensive part of your team is a good idea.
Building connections can be done in the form of networking. It’s important to attend any relevant networking events or online meetings to help build brand awareness both online and regionally.
LinkedIn is a great way to connect with other businesses working in the same industry, with the potential to impress new clients and customers. LinkedIn is simple to use and has all the right people in one place, putting a post up on LinkedIn with key information like what services you offer should help attract the right audience.