This is a great question that many entrepreneurs ask themselves on the journey to setting up their business. Many exuberant business people would want to get their name as a CEO registered straight away, but in terms of strategy – when is it a good time? Here are some things which you need to consider:
Have I got a viable business? You may think that your product/service is the dog’s proverbials but is that really the case? Before going down the legal route of registering your company, you need to be sure that you can make ACTUAL money from it. Maybe give yourself some time to get consumer opinion, give away some freebies – actually ask people – would you pay for my products/services?
The legal structure of my business – Before you register you will have to decide on what type of business structure you will have. There are three options: Sole Trader, Business Partnership or Limited Company. This article from Ready Set StartUp puts together some useful direction and what to consider when making this move – perhaps consider becoming a sole trader first.
Have I had the right advice? A whole manner of things need to be considered before becoming a fully fledged business. When should I register to pay tax? What do I need to have in place to employ people? What will the liabilities be? There is plenty of free advice on offer from accountants, solicitors etc (make the most of your first free 30 min consultations which many professionals provide). Tap into your local Federation of Small Business or Growth Hub to get advice in these areas. There’s also heaps of Start Up websites and support groups who can help.
Let us know when you registered your business, what were the benefits and downfalls about the timing? We all in this together, right?
Gov. UK – Set up a private limited company https://www.gov.uk/limited-company-formation
Gov. UK – Set up a business https://www.gov.uk/set-up-business
Whilst you’re here why not take a look at our recent post “Should I trademark my business”