Making the leap from being self-employed to running your own limited company can be one you find scary and full of risk. Indeed, making the jump typically involves higher costs and will open you up to new responsibilities and legal duties, but the truth is that, for most entrepreneurs, the benefits of running a limited company far outweigh the drawbacks. Below, we’ve put together some tips and tricks on transitioning from one to the other. Check it out…
Develop your business plan
Perhaps one of the most important elements when making the leap to incorporating a business is understanding exactly what you hope to achieve in the coming months and years. Sitting down with a business partner, staff member, or friend and ironing out the things you want to do within the next six, twelve, and 18-month period will give you focus and ensure that your business develops from strength to strength. Otherwise, it’s easy to carry on as you are, without any real focus or path, and find that your business begins to suffer.
Find an accountant
Perhaps one of the most important pieces of advice we can give you in this article is that, when you’re transitioning from self-employment to becoming the owner of a limited company, it makes sense to hire an accountant who can assist with incorporation as well as filing the necessary documentation to HMRC. They’ll keep you on track, explain what expenses you can claim, and ensure you’re only paying the most appropriate level of tax based on your circumstances. Don’t put this one off – a good accountant will pay for themselves in no time.
Consider outsourcing elements
When you’re working for yourself, it’s natural to want to do everything on your own, but as you grow your business, being able to hand over the responsibility to others is a wise move. Whether you’re outsourcing your digital marketing strategy or you find a company that offers facilities management services such as cleaning and grounds maintenance, it makes sense to hand over some tasks to the professionals, saving you time, money and added headache.
Think about long-term growth
Finally, think about your company’s long-term growth strategy. How are you going to achieve your ambitions? Do you need to take on a new hire? Do you need to take out a company loan to pay for new machinery or marketing? If you’re on the ball and understand what you need to do to take your business to the next level, you’ll find it easier to make more revenue.
Do you have advice for would-be business owners? Let us know in the comments section below and check back to our website soon for more tips and tricks, right here every week