You might be considering a change in your employment scenery and might want to start your own little business. We can never tell exactly how successful our ventures are, but you can gauge how much potential it has from the amount of passion you have for the cause. It is always best to turn a passion project into a lucrative business to weigh your prospects’ pros and cons. Like self-employment, limited company advantages and disadvantages can turn any dream into a nightmare if you lose focus on your plans’ strengths and structure.
We asked Adam C from Ignite SEO who works closely with self-employed individuals and understands the challenges they face. He said “Becoming self-employed is very common and has many benefits, but it is a huge commitment to make and needs proper planning. Many individuals like the idea of becoming self-employed but are not willing to face the challenges that come with it and as a result, they fail in their businesses.”
Self-employment pros and cons
Self-employment can be a joy for anyone who wants to take more time to do other things or someone who has a steady plan and would like to get it out there without sharing their profits. It can be a simple plan that doesn’t require a lot of help from outsiders like baking or floral arranging, where you can easily do it on your own in the comfort of your home. You won’t need to hire a separate space, and you don’t have to hire any employees if you are not busy enough to do so. You might have decided to study and want a little income to keep things going financially, or you might be staying at home, mom and trying to spend more time with her kids. All your profits will be extended to you, and you can still receive a few government benefits if your earnings are under 1000 pounds. For those ideas, there are lots of opportunities, and your income can be steady and sufficient. However, there are possibilities that time management might catch up with you as it tends to when you are working from home, and you will have to go out and hunt for clients if you do not have the right marketing plan to help you gain new customers. If you are unfamiliar with tax returns and have no clue about it, you will need to hire an accountant to assist you. If you are hiring equipment or you have a stick bill, you will be held liable, and chances are you will need to go back to full-time employment for a boss.
Limited company pros and cons
The best thing about a limited company is that you do not have to bear the business’s burden on your own. With the right business partners and staff, you could easily make a great turn over. Once your company goes public,. You stand a chance to have fresh investors come in to finance your business through their stock purchases. You don’t have to pay personal income tax, and the tax will be deducted from your dividends. There is very little to be concerned about because more people can assist you that run the company alongside you.
Unfortunately, the registration process is unforgiving, and you will have to have everything in order before you can even register the name of the business. You need to register your company name with the HMRC and customs and the Department of Business Energy and Industrial Strategies if you want a specific name that is both unique and accredited. This could take a while if there are too many names that sound similar, and without a name for your business, you won’t be able to register. There is a lot of paperwork that needs to be filed and documented, and without it, your business won’t happen.
Each business sector has its pros and cons, and it can only be as successful as you would like it to be with time and dedication. For more information, visit www.dnsassociates.co.uk