If you have recently quit your job and you want to start out by yourself trying to create your own business enterprise, then you are to be congratulated for that because it is a very brave decision. Many people try to start their own businesses every day of the week and many of them don’t survive the first two to three years due to financial constraints and other issues. They get advice from friends and family about what it is that they should and shouldn’t do and yet they miss one vital piece of information that can make or break their business. I am of course talking about registering your company because this is one of the most important things that you could possibly do.
It is crucial that you try to restrict your liability when it comes to your business and that you are able to separate it from your personal belongings. If you haven’t done this and you’re still trading as a sole trader or as part of a partnership, then there are a number of company registration agents that you can turn to who can register your business for you and this provides you with added protection. There is no point in working hard and putting in all the hours if someone can steal your business name right from under you. If you are building a small business and you hope to grow into a much larger one, then here are some of the reasons why you really do need to register it.
- It establishes your brand – Any long-term business owner will tell you that your brand is everything and you need to do everything to protect it. By registering your enterprise, you’re taking the first steps to creating a well known brand identity and it also gives you an opportunity to make sure that there are no other businesses out there that are going to have the same name as yours or similar to you. You want to choose something quite unique and if you have already printed all of the stationery and designed all of your business cards, then this will be a huge waste of money when you find out that the business name is already registered.
- It helps with the hiring process – If your business continues to grow into something quite successful then it’s likely that you will want to hire additional staff. If your business is not registered then you will be unable to pay taxes that are owed by your staff and various other payments that are paid to the local government. By registering your business in the first instance, it allows you to follow all necessary procedures so that you don’t fall foul of the law.
If you want to expand your business then it’s likely that you’re going to need a cash injection and so you will have to turn to lending establishments for that very thing. Many banks and building societies will not want to talk to you initially if your business isn’t properly registered.