Blog - form a company

5 Secrets To Launching A Successful Online Business

01 October 2015

The online world of ecommerce is where many businesses are making their money these days. Starting an online business is an excellent way to take advantage of the growth of online shopping and could be lucrative for your company. Before starting an online business, there are some key things to consider. We’ve put together five secrets to successfully launching an online business in order help you succeed in your new venture.

  1. Plan your business

Starting an online business is definitely less complex than starting a real world business and it can be done a lot faster. However, it is still essential to have created a proper business plan including a cashflow forecast, brand identity, and marketing plans, before the business is launched.

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  1. Build your foundations

Setting up an online business shouldn’t be any different from setting up a standard business. It’s important to get all of the foundations in place. Forming a limited company is a great way to protect your personal finances and also helps customers perceive your business as official. You can form a company online today, using our online company formation service. Just click here! 

  1. Decide on DIY or agency

It can be tempting to try the DIY way of setting up an online business. It may work out cheaper and you’ll be completely in control. However, it’s also important to consider how time consuming it is and a more professional result is likely to be achieved if you opt for outsourcing this job.

Going with an agency will take the stress away from you and they’ll also be able to offer ongoing support and updates for your business.

  1. Start with a skeleton

One of the best things about starting an online business is that it’s possible to get set up and start selling almost instantly. While planning your business before starting to sell is essential, once that’s done you should try and get your products or services available for purchase as soon as possible, so that you can start making a profit.

  1. Set a launch date

Just like a normal business, doing a proper launch can work wonders. By setting a launch date you’ll be able to gear your marketing to building up interest, until your first products are available to sell online. Consider ways to make your launch memorable in the online world. Some businesses launch by running a webinar, which allows them to engage directly with all of their potential online customers.

Remember – in order to launch, your online business doesn’t have to have all of the bells and whistles installed. Just make it functional and professional looking!

We’re here to help your business succeed

At eformations, we’re ready to assist your business on its way to success. Our online company formation service is designed to make forming a company as simple and as hassle free as possible. To find out more about company formation and other business services we offer, please visit our website: https://blog.eformations.co.uk/Alternatively, you can call us for a friendly chat on 020 8232 5479.

 

 

How To Issue Shares

22 May 2015

When you form a company it is the requirement of  the Companies Act that at least one share must be issued at the time of incorporation. This is called subscriber share and carries the value (nominal value *) you choose at the time of incorporation.

Q. A question we are often asked by our customers after they have formed a company is – how can I add a ‘partner’ to my business?

A. Limited companies don’t have partners, they have directors and shareholders, so if you mean that you want to give a share of your company to another person then you need to issue further shares.

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Here are 5 easy steps to issuing shares

Check that your company’s Articles don’t have a restriction on the maximum number of shares that can be issued. This is relevant to companies incorporated before 1 October 2009 because these older companies used to have an authorised share capital.

  1. Complete an application form
    The person wishing to own the new shares completes an application form and returns it to the Company with the required payment. So, if the nominal value of the shares is £1 each and he/she is applying for 100 shares then £100 will be payable to the Company.
  2. Pass a Resolution
    The directors pass a resolution to approve the application and allot the shares to the person applying for them.
  3. Send form SH01 to Companies House
    Return of allotment form SH01 must be sent to the Registrar within one month of the allotment date.
  4. Prepare Share Certificate
    The company secretary prepares the share certificate. The share certificates are available in the statutory register. The company must issue share certificates within two months of allotment.
  5. Complete Members Register
    The name of the new share holders must be entered in the company’s statutory register to complete this task of making them members.

Since allotting shares is so easy after the company is incorporated, you don’t need to think about the share structure too much when forming a company. Just form the company issuing one share to the director or another person. Further shares can be issued at any time after the company is incorporated. Call the eformations team on 0208232 5479 for further advice on how to form a company or how to issue shares. We are well equipped with knowledge and experience.

*Nominal value, also know as par value or face value of a share is the value at which it will be redeemed. Nominal value is not the same as market value. If the market value is higher than the nominal value, the difference is called a premium.