Blog - business success

The First Year In Business: How Successful Startups Made It Through

07 October 2016

Starting a business is a big risk, but often one that is worth taking. A lot of the time, start-up owners are on the line financially and sometimes even mentally during their first year of business. That first year is critical in deciding whether your business will be a success or a failure. While no one possesses a magic formula that can tell you for sure if your business will be a hit or a miss, these tips will help you to make that first year as good as it can be and line your business up for its best chance at success!

Keep on trying

When you read about businesses succeeding or failing, you’d be forgiven for thinking that there are only two options – magical unicorn businesses that are instant runaway successes and disastrous failures – businesses that have always lacked potential and are doomed from the start. The truth is that most startup businesses usually fall somewhere in-between these two extremes.

In order to influence your business in the right direction, perspiration and perseverance is required in order to make your inspiration pay off. It’s also important to try and maintain a positive outlook despite the challenges that your business will inevitably face. If you can see past these challenges to the future of your business, then you’re well on your way to succeeding.

Work together

Time is a commodity during the first year of a start-up and business owners are often immersed in the business, but it can be good to take some time to talk to colleagues, friends and other advisors. Collaborating with these people is a great way to gain feedback, insight and even new ideas that could help your business.

Not every conversation will be of value to your business, but in general most will be positive and you’ll also be building yourself a support network that will be useful in years to come.

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Enjoy the journey

This is an important one! There are a lot of risks involved with starting a business and some challenges can seem insurmountable and create a lot of stress. However, the opportunity to pursue something you truly believe in, to see it grow and to be your own boss is considered by most to be excellent compensation for the initial tough times after forming your company.

Plan for the future!

Planning for year two is something that is important to do. Setting long term goals, such as having five year plans, is also recommended by many leading entrepreneurs. This will also help you to see past any challenges that appear during year one and aid you in finding a way through to business success. It’s also great to set goals so that you know exactly what each task you do is contributing to!

Are you ready to begin your business journey to success?

From forming your company with our online company formation service, to business accounting and much more, we’re here to help your business on its journey to success. Find out more about the services we offer on our website: blog.eformations.co.uk Or alternatively, give us a call for a friendly chat on: 0208 232 5479.

Business Success Stories: Four Secrets Of Successful Companies Who Did Well In Their First Year

02 February 2015

The first year of business can be a rocky time for companies just starting out, and it is during this time that many businesses fail. However, there are many success stories out there which can inspire your own business and help you to become a business success.

  1. Find the right inspiration

All businesses start with an idea. Sometimes an idea for a business comes from working for an employer and realising that something could be done better. Other times, business inspiration strikes because of an idea inspired by an occurrence in daily life. A good way of knowing if a business is right for you is to consider whether you feel passionate about the concept. All businesses experience ups and downs and commitment and passion for an idea is needed in order to persevere.

 

The entrepreneur behind AlgAran, a seaweed product company, first became fascinated with seaweed because of its impressive results as a grape fertiliser. This inspired a fascination with seaweed which resulted in her spending so much time researching it she says she was shunned by her friends due to it being all that she talked about!

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  1. Discover your motivation

Money is often the first answer that springs to mind when people are asked why they want to have their own business, but the most successful businesses are usually founded because their founder was passionate about solving a problem or improving upon an existing idea. Some entrepreneurs are even motivated by the excitement of building teams and starting something new. Listen to successful serial entrepreneur Judy Estrin talk about what motivates businesses here: http://www.bbc.co.uk/news/business-24853536

 

It is a great idea to consider exactly why you’re in the business you’re in – even if you’ve been doing it for a while!

 

  1. Be prepared to be flexible

Many businesses fail because their owners get fixated on one idea and refuse to make any changes that could result in massive success. PayPal was originally envisioned as a cryptography company and overcame many failures before they found their sweet spot as an online payment system. If something isn’t working about your business model, consider a slight change of direction. Small adjustments can make a huge difference and lead to business success.

 

  1. Don’t be afraid to grow your business

If you’ve conducted research, tested the idea, and are passionate about what you’re doing, you shouldn’t be afraid to seek funding for your business. While obtaining backing for a new business can be tough in the current economic climate, raising money to grow your business is very important and will stop you from trying to do every single task yourself. Funding can help your business to grow faster and succeed faster.

 

Applying for backing might seem intimidating. It’s a great idea to connect with other business owners and entrepreneurs who’ve obtained backing before and ask their advice. Starting a business shouldn’t be a lonely process!

 

Taskrabbit, a business that specialises in errand running, connected with an already successful entrepreneur who supported the idea and allowed Ms Busque to watch him scale a business of his own and raise the money to support it.

We’re here to help your business succeed in its first year and beyond

At eformations, we offer a wide range of services beyond company formation. We’re here to help demystify the behind the scenes work that goes into running a business. Using our business services will help free up your time so you can focus on taking your company forward. If you’d like to find out more about any of our services, please contact us for a friendly chat on 020 8232 5479 or visit https://blog.eformations.co.uk 

 

What is Companies House?

10 September 2014

If you’re considering or are in the process of setting up your own business, you’ll probably have heard of Companies House. However, their exact function might still be a bit of a mystery. We’re here to fill you in on all you need to know about Companies House and how it affects your business.

The history of Companies House

In 1844, The Joint Stock Companies Act meant that companies could form more easily than previously when the incorporation of joint stock companies was only possible by private act or royal charter. This act meant that all companies that formed under it were added to a public register. The office of Registrar of Joint Stock Companies was then created to be responsible for maintaining this register.

Currently, company registration is dealt with under the Companies Act 2006.

Today, all limited companies in the United Kingdom are registered with Companies House. There are over three million limited companies currently registered in the UK and every year over 400,000 new companies are incorporated.

What Companies House does

Companies House has a number of functions. The main functions are:

  • Incorporating and dissolving limited companies.
  • Storing and examining company information which has been delivered under the Companies Act.
  • Making this information available to the public.

Where is Companies House located?

Companies House has 3 offices, in Cardiff, Edinburgh and Belfast.

The Cardiff office deals with companies incorporated in England and Wales, and with companies incorporated in Wales. Wherever the registered office of the company will be situated, in England or Wales, the company must be registered in Cardiff. England and Wales are a separate entity from Scotland.

When the registered office of the company is to be situated in Scotland, the company must be registered in Edinburgh.

When the registered office of the company will be based in Northern Ireland, the company must be registered in Belfast.

Upon incorporation of a company the certificate of incorporation produced by Companies House will clearly state where the company is incorporated.

Storage of Information

An important task of Companies House is to store data and provide that data to the public. The statistics of the companies registered at Companies House are published in the annual report.

Can I obtain data from Companies House?

Companies House have a website www.companieshouse.gov.uk where you can obtain information about all companies incorporated under the Companies Act. Most of the information is available digitally at a small charge.

Companies House also provide a wealth of resources and guidance booklets on numerous aspects of incorporating and running a limited company.  This information is available free of charge on their website.

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How can we help? 

While a lot of free information is available from Companies House, it is still a daunting task for a new entrepreneur to work through the jungle of technical information to set up a limited company and run it properly. Give us a call on 020 8232 5479 and don’t forget to visit blog.eformations.co.uk

Responsibilities of Directors of a Limited Company

19 August 2014

You have probably already carried out research on setting up a limited company and have learnt that it takes only one person to set up a limited company. Such a company is called a sole director company. On blog.eformations.co.uk you can appoint yourself as a director and a shareholder and off you go – your company is incorporated.  But, have you wondered what responsibilities are attached with this prestigious title?

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First of all, what are directors?

Directors are essentially people responsible for running the company. They are employees of the company. They work for the benefit of shareholders (members). A director’s prime duty, which he holds together with his fellow directors is to promote the success of the company for the benefit of its members.

The Companies Act 2006 introduced four duties of directors on 1 October 2007 and a further three came into effect on 1 October 2008.These seven duties are:-

  1. To act within the powers (CA2006 s.171) conferred upon them by company law and the company’s Articles of Association.
  1. To promote the success of the company (CA2006 s.172) and in doing so have regard to some matters, for example:

– The likely consequences of any decision in the long term.

– The interests of the company’s employees.

– The need to act fairly between members of the company.

Hence, they must ensure that the company is able to pay its debts and may be held personally liable if it is unable to do so.

  1. To exercise independent judgment (CA2006 s.173).
  1. To exercise reasonable care, skill and diligence (CA2006 s.174).
  1. To avoid conflicts of interest (CA2006 s.175). Directors must avoid situations in which they have or might have a direct or indirect interest that might conflict with the interest of the company.
  1. Not to accept benefits from third parties (CA2006 s.176). They must not use their position to further their own interest.
  1. To declare interests in any proposed transaction or arrangement (CA2006 s.177). 

Directors’ Responsibilities to Companies House

In carrying out their day to day duties directors have responsibilities towards Companies House. They have to prepare and deliver documents, on behalf of the company, to Companies House as and when required by the Companies Act.

  • The annual return.
  • The annual accounts.
  • Notification of any change in the company’s officers or in their personal details.
  • Notification of a change to the company’s registered office.
  • Allotment of shares.
  • Registration of any charges.

The chores of the directors seem onerous but can be considerably lightened by using our service. Call us now on 020 82325479.

Beware The Heat Wave Then The Storm

12 August 2014

What to do when business is good and when business is bad.

Hopefully you’ve had chance to go outside and catch some rays in the glorious sunshine this summer. However, we’ve also had our fair share of dramatic storms.

The same weather patterns are true for business. While the heat wave times of booming business are great, are you prepared to deal with the storms? We look at what you should do to ensure your business stays successful through the good times and the bad.

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What to do in the storms when business is lean:

Reach out to Old Contacts

You’ll have more time on your hands, so use this as an opportunity to reach out to people you’ve had dealings with in the past. This is a good time to network, and new opportunities are more likely to come your way when you’re out looking for them. Another great tip is to not be above doing jobs which aren’t exactly the work you’re looking for. The main aim is to generate cashflow that will tide you over.

Account for it in Advance

For some businesses, this kind of prediction can be difficult to make. However, if you do have some idea of when your down periods may be, you should try and account for it in advance so you know how the business will survive during these times. A good way of doing this is to create a cashflow forecast, so you can have some idea of the kind of ups and downs you’d expect to see in a typical year. Your business type will affect which seasons are good and bad, but common down seasons might be August, when everyone’s on holiday, and January, when everyone’s low on cash after Christmas.

Be Honest with your Employees

If the business is going through a hard time, one of the best things you can do is to be honest with your employees. If you’re going to have to cut back on your expenses, they’ll appreciate you being upfront with them and may even have thoughts on how to make the business more efficient.

What to do in the heat wave when business is good:

You could be forgiven for assuming that you don’t need to take any action when your business is doing well. But while congratulations is in order, there are still some steps you can take to ensure your business continues on the upward trajectory and is also well prepared for any future storms.

Make note of what’s working well

If you haven’t already done so, keep track of the actions you took which led to success and the market conditions in which you flourished. No matter how successful you are, there will always be an area that you can improve in.

Improve the customer experience

A side effect of success can be a reduction in the quality of customer service due to being so busy. To avoid this from happening, be sure to ask for feedback and work on any areas that could be improved.

Need more business advice?

If you have any business related questions, feel free to comment below or send us a message.