The Benefits of a Wide Span of Control in a Company

10 April 2014

The process of forming your own company can be very exciting as every businessperson expects success and anticipates many other prospects ahead. Reaching industrial landmarks, establishing market share and being your own boss are only a short list of these benefits that lie somewhere beyond the horizon of entering an industry as a newly formed business.

Although it sounds simple and straightforward, company formation can be very difficult and it is common that many entrepreneurs’ companies or business ideas fail to materialise because of the problems encountered during the formation phase. Apart from complying with the legal requirements, setting up bank accounts and other external work, there are internal issues that need addressing to make sure your company sets off to a flying start once you open for trading.

Management structure is a one of the most important internal issues. This essentially defines how the company structure will be set up from the manager to his less skilled subordinates. There are two management structures which are narrow and wide span of control. This blog, which will discuss the advantages of a wide span of control, is the first part of a 2-part article covering management structures.


Adapting a wide span of control allows the company director to include his subordinates during the decision making process. In this case, the employees are given the chance to speak up which not only increases job satisfaction due to employees feeling valued but also helps the manager make wiser decisions.


One of the most prominent features of a company with a wide span of control is that there are fewer managers. This clears the communication barrier between the employees and the personnel at the top of the hierarchy as direct communication between the two parties is encouraged.


As employees can directly communicate with the directors, it allows the formation of employer-employee rapport creating trust! This is important especially in small companies where if the business owner trusts the employee they can delegate important work to them. The significance of this is that the manager can assess employees’ strengths.

It is fundamental that before you think about opening as a company to consider how you will manage the firm. However, business leader tend to forget such aspects as the formation process overwhelms them. In this case, make sure you seek guidance from companies like us at eformations. We are a company that specialises in company formation services to take the burden off entrepreneurs’ shoulders. If you require more detail about the services available here, please do not hesitate to contact us, our team of experts is always at hand to help.

Most Common Reasons for Corporate Failure

08 April 2014

As we have mentioned in previous blogs, the favourable economic climate will trigger a rise in limited company formation and the appearance of other smaller entities such as sole traders. It is estimated in the UK alone, nearly half a million companies are formed each year and as numbers are on the rise, it is correct to assume there will be more business start-ups in 2014.

Research by experts states that there were 479,545 companies formed in 2012 and 2013 showed an increase, with figures highlighting that 517,210 companies were formed during this period.  However, it is predicted that 1 in 3 of them will fail within the first 3 years of starting-up. Business people are aware of these alarming figures and that it is mainly down to them to ensure that their company does not end up experiencing some fatal difficulties.

As a company specialising in offering assistance with many aspects of limited company formation and other ‘after forming a company’ services, we aware of the different problems that newly formed companies might encounter that might threaten corporate well-being. We shall use this blog to discuss the different problems as such.

Poor marketing

A successful businessperson needs to grasp every concept about running a business including marketing. Organisational promotion is critically important in modern business and it is important that business people avoid blindly entering a market, as unexpected barriers will simply force their exit. Promotion is not simply advertising through the media, it involves other complex aspects of market research such as the marketing mix.

Deficient cash flow

Many business experts indicate that it is important to start up slowly. However, it is a common occurrence that business people will get ahead of themselves and attempt expanding too quickly. This is when they end up borrowing increasingly large amounts of money that accumulate in interest charges. Many small businesses end up struggling to pay off this debt, as they cannot break even since their corporate income fails to sustain the outgoings.

Planning incompetence

As professionals say, failing to plan is planning to fail. Setting up clear objectives and goals within the company strategy is extremely important as they give you company a sense of direction. Ensure you set quarterly targets alongside annual goals as a measure of assessing the corporate performance. This will also allow you to benchmark your performances with your own performances to set future targets.

Financial difficulties

Although statistics by Inside Start-ups show that the UK is the cheapest place in the world to start up a company, it is still difficult to find investors. As of 2011, the UK had 619,000 millionaires and of these, it is indicated that only a mere 5% support company start ups. Due to lack of financial support, many companies collapse within a short while. Hopefully this will alter soon as the government announced favourable tax relief for investors who invest into small to medium enterprises.

Market research

As mentioned earlier, marketing is a crucial part of corporate well-being that needs harnessing. It is important to carry out market segmentation before establishing your business. Geographic segmentation will help your organisation not only find the most suitable location but also help you establish your particular target audience. Furthermore, use modern marketing measures such as social media to facilitate effective communication. It is reported that in the UK there are over 31million people using Facebook. Embrace such communication platforms to get your brand noticed.

There are many other reasons why companies will experience difficulty within the first 3 years of starting. This can be understandable to an extent as entrepreneurs are still novices and getting used to running an organisation. However, entrepreneurs need to know that there is always help available if they finding the company start-up process difficult. If you are in this situation, contact companies like us at eformations, for we will be able to help you with any aspects concerning company formation.

How The Budget Can Help Small UK Businesses

04 April 2014

In a previous blog, we indicated how highly anticipated the annual budget was, and the predictions that many industries had made. Well, the Chancellor of Exchequer finally grabbed the headlines to make an announcement on the forthcoming fiscal year’s spending allocations. Among the statements released was a positively welcomed implication concerning small business welfare.

The economy is growing, and it is no surprise that the British innovative community is congruently expanding too. Yes, this year has been predicted as the entrepreneur’s year of success, and as a company that helps numerous newly starting business owners with company registration, we at eformations give this expectation our full support. The announcements made in the budget that are set to contribute towards small business success will be the focal point of this blog.

Apprenticeship Expansion

In a bid to eliminate youth unemployment, Chancellor George Osborne announced that any small business recruiting employees below the age of 21 years will not pay any national insurance for such employees. In addition, the Chancellor also underlined that a scheme had been set up to financially support the recruitment of 100,000 apprentices across the manufacturing and service sectors.

Corporate Expenses

It has become apparent that many entrepreneurs are deterred from starting up their businesses due to the costs involved in setting up the company. Taxing fee and energy bills were the two main costs that saw business people suffer previously. However, with the government announcing measures such as the Carbon Price Floor, to offer business discounts, hopefully business costs will be reduced and there will be an increase in liquid cash for business purposes.

Tax Relief

The Chancellor announced his full support of the current Seed Enterprise Investment Scheme (SEIS), which encourages business investors to go ahead and offer financial backing to businesses. The SEIS allows all investors (who are heavily relied upon by businesspeople) to receive generous tax relief when making an investment of up to £100,000 into a newly started company. This attractive scheme will undoubtedly raise a substantial amount of money for entrepreneurs

These and many other measures that were recently announced by the Chancellor will certainly attract many business people into the available markets. However, it is true that the process of company formation can be very daunting and tedious. This is why companies like us at eformations are available to offer you the necessary support, and relieve you of the stress involved. Our services are available to anyone across the nation, so feel free to make an enquiry on 02082325479.


Top Tips For Expanding a Small Business

01 April 2014

Britain certainly has a very promising future when it comes to the business field. The innovation community is growing and, with many budding entrepreneurs surfacing across the many business industries in the UK, it is inevitable that many industries will be regarded as ‘Red Ocean’ markets as industrial saturation sets in.

London_skylineMany markets will be difficult to enter, as little market share is available for new entries, and many customers are loyal to the existent brands. In this case, those who think ahead and focus on future business strategy will undoubtedly ask themselves the question: ‘So what does the future hold for ambitious business people who seek corporate expansion?’.

As a company that specialises in company registration, we at eformations have a broad knowledge about expansion trends across business markets, and we believe that there are many answers to this challenging question. We shall use this blog to discuss these facts, and we certainly hope they guide you towards company success when your organisation is ready for expansion in any of the UK’s industries, which are all characterised by fierce competition.


Experts like Igor Ansof, a businessperson who developed the marketing matrix concept, believe business diversification is a fundamental part of business expansion. Diversification is where a company decides to produce different products to spread their services across different markets. For instance, an organisation offering company formation assistance (like us) can also offer a complete accountancy service. This way, the company can conquer different markets, encouraging profitability for successful expansion.

Government Aid

The British government has always reiterated how much they are willing to support businesses in the UK; both new and existing firms. It is important to take advantage of the privileges they offer. For example, the new £500,000 Annual Investment Allowance (announced along with the 2014 budget) states that businesses can claim 100% tax relief on all investments gearing them towards expansion this year.

Effective Marketing

complete-accountancy-service-img1Advertising and promotion have been a pivotal aspect of business success for many years now. Modern business marketing has changed, and it is fundamental that businesses adjust to current trends such as the use of social media and other online facilities. According to marketing group Social Media Today, nearly 50% of businesses now have online content marketing strategies; as such measures have turned out to be effective communication platforms. Use marketing to increase brand awareness to allow long-term expansion.


The trend of forming partnerships with foreign companies is very popular among UK firms. Statistics show there were 116 cross border transactions involving British firms in the third quarter of 2013 alone. The main reason why these companies do so is similar to diversification. If the local market is saturated, it is a good idea to expand into foreign territory means of gaining extra profits. A risk eliminating strategy of foreign expansion would be licensing your products or services to a local company, so that the local firm can easily introduce your product into the local market and lower the barriers to entry.

There are numerous other strategies that businesses can use to expand and transform their brand into a nationally recognised brand, or better yet, a globally operating entity. It is important to ensure that each measure is approached with a carefully planned strategy to minimise the risk of failure. Companies are always growing, and if you wish to expand through starting a new company then do not hesitate to contact experts like us at eformations. We have the relevant experience to help make the whole process much easier for you.