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Mistakes Every New Entrepreneur Should Avoid

Mistakes Every New Entrepreneur Should Avoid

Starting your own business can be quite exciting and can also be a bit overpowering at times. If you’re new to the trade industry, there are so many things that may go through your mind when you think about your business.

Being a rookie is something that every successful business owner experienced. Because of the busyness, excitement, and other emotions or scenarios you are encountering, you’re at the risk of committing mistakes. Making mistakes is okay, that’s part of the trade business; but knowing a thing or two about the most common mistakes new entrepreneurs make can give you a heads up. And, who knows, you may possibly avoid these mistakes, too.

Not creating a plan for your business is a common mistake among upcoming tradesmen. While ‘go with the flow’ is a popular motto in life – unfortunately, it does not apply to businesses; most especially when you’re just starting out. Create a business plan and stick to it so your business can follow a firm, established direction and you may just be directing your business towards guaranteed success.

Disregarding marketing of your business is another usual mistake rookies make in trading. Even if you have the best, incomparable, unsurpassable goods or services to offer, you may not get clients if you have not marketed your business well enough.

Not checking if your planned business name is already taken by another business is a careless mistake done by some new businessmen. Do an online check if the name you plan to use for your business isn’t owned by somebody else yet. Otherwise you may be paying a lot of cash in settlement even before your business boomed.

Another typical mistake beginners in the business industry make is not opening a separate bank account for their business. Even if you’re a sole proprietor and trading business is just a sideline for you, you should separate your business’s bank account from your personal bank account. This way you can track your business funds better.

There are a lot more mistakes that can be committed when you’ve just started to find your way in the business world. Being familiar with some of these mistakes may help you avoid them; after all, business mistakes may not only delay your business plans, they can be costly as well.

Responsibilities of a Sole Trader

Responsibilities of a Sole Trader

A sole trader is someone who operates his or her own business.  Sole traders or self employed individuals have contributed a great deal in the growth of the business sector in UK continually since 2000.

If you’re aspiring to be a sole trader yourself, you must take into consideration that being a sole trader comes with important responsibilities.

As a sole trader, here are some of your key responsibilities:

You must register yourself as a sole trader. You must register to HM Customs & Revenues or HMRC as self-employed. Doing this is relatively easy. You may just give their helpline a call or simply accomplish an online form from them. Registration as self-employed must be done within three months from the start of trading. Otherwise, you would have to pay a penalty for not meeting the deadline for registration.

You should check if you need to pay National Insurance Contribution (NIC) and Value Added Tax (VAT) and how much you need to pay. Determining whether you need to pay NICs and VATs will depend on your annual income from your business.

You would have to manage your employees’ NICs as well as income tax returns and forward it to HMRC. You have to prepare a special payment system for this.

You should ensure proper documentation of your financial records. Keeping a detailed record of your finances, expenses, and everything related to your business’s funds is necessary once you become a sole trader. On the other hand, you may also opt to employ an accountant or bookkeeper instead.

You should be ready to multitask and perform many jobs. When you’re just starting your own business and don’t have employees yet, you will have to accomplish many roles such as being the manager, accountant, marketer, customer service representative, as well as hiring specialist. You must be able to do these jobs well.

You must be able to manage your time effectively. Just as with being able to do different jobs, you must also learn to manage your time so you can attend to the needs of your business promptly.

Managing your own business is a big task. Just be patient and continue doing these responsibilities. You’ll eventually realise that every effort you put into being a diligent sole trader will pay off.

 

 

 

Startup in progress concept. Successful start-up with growing potential.

The Basics of Starting Up Your Own Business

Setting up your own trade business can be a challenging task. You must be careful in every step you take to make sure that your business will prosper; otherwise you might just end up wasting a lot of money and being bankrupt.

However, if you try to learn everything you can about starting a business prior to establishing it, you may just achieve success in this industry.  Importing or exporting goods in the country has proven to be an effective way of generating income for local trading businesses. This is one of the primary reasons entrepreneurs involve in trading ventures.

So, what are the basic requirements you need to take care of if you’re planning to start up your business?

One of the most important factors you want to consider before starting up your business is planning or choosing the location where you want to put up your office or shop. You have to make sure that the land where you decide to put your business on falls into the appropriate Use Class. The nature of business and all the activities this business would entail would greatly influence the type of neighbourhood you can construct your business in. Additionally, whether you’re intending to build a new premise or aiming to renovate an existing building for your business, you would need to get in touch with your Local Authority Planning Department.

Another essential matter you have to deal with is ensuring that your business will be in compliance with the health and safety regulations set by authorities. To know more about this you must get in contact with the Environmental Health Department.

The equipment and appliances that you will use in your business such as air conditioning systems, heating systems or refrigerators would have to friendly to the environment. For more details, call the Environment and Energy Helpline.

If you’re planning to import products or goods, you must know that there are particular items that you would need a permit for. Proper documentation is absolutely necessary if you’re starting a business. To check which types of products would require licence, you may use the UK Trade Tariff.

If your aim is to employ workers, you need to know about their rights. You have to prepare a written contract for your potential employees, plan a training schedule for them; you have to find out the wage compatible to the type of work you are assigning, you have to ensure that the workplace is safe for the employees as well. These are just some of the rights of employees. To get to know more about the complete rights of the employees and the lawful duties of an employer, it’s best to consult a lawyer or law firm.

Registration of your brand name or logo is also one of the priorities in starting up a business. Approval for registration of trade mark can take time, it’s best to make the registration as soon as you start your venture. Contact the Central Enquiry Unit of the UK Patent Office for full details on registration.

Another critical thing you have to attend to is updating your own details when it comes to tax and National Insurance. If you need assistance in registering as a self-employed, you can phone the Newly Self-Employed helpline.

Getting insurance for your trade business can cost a lot of money, but insurance can provide you with valuable security especially in times of calamities and accidents within your business premise. There are various types of insurance, including insurance for your employees.

These are just some of the basic requirements in starting your own trading business. There are plenty more you can discover as you go along in building your own business. The best thing to remember is to start slowly but surely; so you can make sure you cover everything obligated by law.

Pros and Cons of Starting Up Your Own Trade Business

Pros and Cons of Starting Up Your Own Trade Business

Setting up your own trading business is a tempting idea. Just picture this: you, managing your own business where you’re the boss, maybe even hiring some employees of your own someday – simply imagining it can make anyone who wants to be an entrepreneur smile.

However, no matter how enticing the thought of managing your own business sounds, just like everything else – managing your own enterprise isn’t as easy as it seems; starting up your own trade business also has its cons.

If you’re planning on establishing your own business, it’s best to analyse the advantages and disadvantages you may come across so you can make up your mind and be truly prepared for what’s to come.

Let’s start with the pros of starting your own business:

  • Being your own boss – ‘Being your own boss’ doesn’t mean feeling power or importance over your employees, but rather being free from anyone ordering you to do anything. It means being independent in implementing your ideas and doing your work without anyone telling you what to do.
  • Being able to make changes to your business quickly – Another advantage of having your own business is the ability to swiftly adjust your business if needed. For an example, if you just found out that you have to change your working hours (maybe lengthen it) because of business needs, you can do as you please in an instant. There’s no need for you to get approvals or permissions from anyone.
  • Being able to adjust to your needs – If you can make necessary adjustments when your business calls for it, of course you can adjust your business according to your needs, too. If you need more time for resting everyday because of an illness, then you can simply adjust your business hours without the need to produce an official medical recommendation from a physician.
  • Being able to enhance and widen your skills – If you will start a business alone, then you’ll get an opportunity to enhance your skills on many fields. You can improve on your management skills since you’ll handle your own business. You can work on your marketing skills since you’ll be the one to promote your business. You can enhance your recruitment skills as you will carefully screen, choose, and hire people who will work for you.

Now that we’ve established some of the pros of having your own business, let’s discuss the cons.

  • Being your own boss – Yes, being your own boss can be an advantage as well as a disadvantage. Being the boss means all the responsibilities of decision making fall into your hands.
  • Playing different roles at the same time – Although running your own business by yourself means a chance to utilise and enhance your marketing, advertising, management, and hiring skills, all of these roles may mean a lot of work. Excellent time management will be critical. Performing a lot of different work can also be stressful, so you need to be able to handle stress well.
  • Absence of benefits – Once you run your own business you won’t have the free company benefits you once enjoyed as a regular employee such as free dental and health benefits. You would have to start paying for your own health insurance. Another downside is having minimal time for vacations or days off. Running a business requires a lot of time and effort that you may not have enough time to take long vacations, especially when your business is new and you have no one to entrust its management to.

Running an enterprise is not an easy job. Having knowledge of what to expect, as well as getting familiar with business management’s up and down sides can aid you in making an informed decision. If you believe that the benefits outweigh the disadvantages, then operating your own business may just be for you.