Blog - online company formation service

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.

Why Brexit Is Good For Business

11 July 2016

There’s been a lot of doom and gloom around the result of the referendum, mostly due to the devaluation of the pound, but is Brexit really bad for business? Here are six silver linings to Brexit that may benefit your business.

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1. Property

With uncertainty about sterling, the prices of UK property may fall in the future. This is good news for property entrepreneurs and businesses who are looking to purchase business premises.

2. It may be easier to get a loan for your business

The Bank of England are easing lending rules to stimulate the economy. As well as there being an extra £150 billion available in loans, analysts believe that the Bank of England may cut their interest rates soon to make loans an even more attractive prospect.

3. Businesses in the tourism industry will benefit

With the value of sterling down, the UK may become a more attractive holiday destination to foreign visitors. Foreign destinations are also comparably more expensive, so British holidaymakers may decide to holiday at home.

4. Exporters will benefit

Businesses who rely on imports will be feeling the crunch after the devaluation of sterling. However, businesses that export will be looking at Brexit as an excellent business opportunity. Many exporters are locking in forward contracts at the current rates in order to get the best deal.

5. New talent

While critics believe that businesses who largely hire talent from the EU will see a detrimental effect on their staffing due to Brexit, there is an alternative view that suggests Brexit may improve the workforce.

After Brexit, it is likely that the UK will allow more migrants from countries such as China, India, Australia, and the US, to move to the UK. Businesses may be able to recruit skilled workers from these countries. There is also the possibility that a points entry system will be established – much like Australia’s. This in turn may mean higher quality candidates coming into the UK looking for work.

6. Less red tape

Most businesses, from the micro to huge corporations, have experienced frustration at some point due to EU regulations. Brexit should give the UK full control over how business is run in Britain, which should help British businesses to thrive. After Brexit, the red tape could be removed very quickly and businesses may see benefits almost immediately.

A good time to start a new business?

In times of change, there are always opportunities for entrepreneurs and new businesses. If you’re thinking about forming a company, this may be the perfect time to do it. Take action today and use our online company formation service to form your company in just a few hours. You can find out more about our online company formation service here.

5 Things You Should Do When Pitching Your Start-Up To Big Name Investors

20 April 2016

Pitching your business idea or start-up to investors can be a bit intimidating – especially when you’re aiming high. Our five things you should do when pitching your start-up to investors will help you to sell your idea effectively and walk away with the investment your business needs.

  1. YOU are just as important as your idea

Investors aren’t only going to be judging your business idea; they’re also going to be judging your capability of making it happen. It’s possible that you may be asked questions about past business experience, but don’t worry if this is your first venture! Instead, think up examples of past situations that have taught you valuable lessons that will apply to your business. One idea could be a story about a time where you failed at something and what it taught you.  

  1. Let your business tell the story

It’s a great idea to let your product or service do the talking. If possible get a prototype made, or make a video of your service being performed. This will do wonders for your pitch!

Another way to impress is to make sure you are presenting a professional image. Using a prestigious London address on business cards is a great way of implying that your business is to be taken seriously. If you’re interested in changing your business address, we offer a London business address service. Find out more here!

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  1. Explain your idea in one sentence

This is a classic tip for a reason! Before you approach any big investors, test your idea out by explaining it, using one sentence, to your friends and family. If they understand it and say ‘That’s a good idea’, you can be sure that investors will be on the same page too.

  1. Clue up on tax

Sophisticated investors and individuals with a high net worth are always eager to take advantage of the government’s tax incentives for investing. To make this possible for your future investors, you need to carefully consider how you set up your company.

Do some research and work out how to make your business compliant and you’ll attract bigger and better investors. A good place to start is by finding out more about Enterprise Investment Scheme and Seed Enterprise Investment Scheme companies and how you can become one too!

  1. Keep on networking!

In business, who you know is a huge factor in your success. Make sure you stay in contact with everyone you meet when you network, as you never know who you might have the perfect idea for at a later date.

Make sure you take every opportunity to network. If you happen to see a potential investor while out and about, take advantage of the situation and go and meet them. Unless they ask for your idea, it’s probably not a good idea to pitch them right there and then. Instead, use an occasion like this to start building a relationship by perhaps asking if you could set up a meeting, or give them a call at a later date. This tactic should also build intrigue as you’re keeping your cards close to your chest for the time being!

Are you ready to look for investors?

We’re here to help you get your business ready for potential investors! From an online company formation service, to a London business address service, we’re here to make sure your business is as professional as you are. Find out more on our website or alternatively, give us a call for a friendly chat on 0208 232 5479.

 

 

 

 

 

4 Things You Should Ask For Help With When You Start A Business

25 November 2015

Starting a business shouldn’t be a lonely process. You may be the mastermind behind your idea, but when it comes to making it happen, it’s always good to seek help with areas you’re not familiar with. Not sure what you should ask for help with, or how to do it? We’ve made a list of four things you should ask for help with when starting a business.

  1. Testing your idea

Lots of people are unwilling to talk about their business idea for a couple of different reasons. Some people are unwilling to open themselves up to other people and risk their idea potentially being ridiculed. Others are afraid that someone will steal their idea if they talk about it.

The truth is, sharing your idea is an excellent way to gain feedback and someone may say something that inspires you to think of an angle you’d never have considered on your own. As far as stealing your idea goes, you are the ingredient that makes your idea unique and no one can replicate that. Also, people are probably far too busy with their own ideas to consider taking yours.

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  1. Not giving up

How can you ask for help with not giving up on your idea? This has its similarities with our last tip. By sharing your idea and getting your friends and family onside, you’ll create a support group that will help you to see your idea through. Sharing your plans means you’ve got a helpful bit of pressure to make it happen.

  1. Forming a company

There can be a lot of paperwork to navigate when forming a company. The time and hassle of getting to grips with all of the technicalities can be avoided by forming your company with an online company formation service. It’s really simple to do, and your company will be formed in 3-5 working hours. You can find out more about our online company formation service here.

  1. Marketing your company

Marketing is something that many business owners take on themselves, thinking it’s an area they can save money on. Unfortunately, these business owners will soon discover that even marketing basics, such as setting up social media accounts, take up a lot of hours that could be spent working on the business. Another good reason for asking for help with marketing is that experienced marketers can achieve results you might not be able to get on your own. Marketing could make your business a success, or a failure, depending on how well it has been done.

A good tip is to shop around for a marketing company. Ask other local businesses who they’d recommend and read any reviews about the company. This should help you to stay safe and spend your money on something that will give you a great return on investment.

Need help starting your business?

We care about your business and are here to help you succeed. At eformations, we offer a wide range of business services, from an online company formation service, to a London business address service, and much more! To find out more about how we can help you, visit our website https://blog.eformations.co.uk/or give us a call for friendly chat on 020 8232 5479.

 

4 Reasons Why Now Is The Perfect Time To Start A Business

11 November 2015

Have you been waiting for the right moment to start your own business? Is it something that you’ve been considering for months, or even years, but have never found the perfect moment to get going? Unfortunately, waiting for the perfect moment is a real start-up killer, as perfect moments seldom arrive. Instead, starting your business right now is the best thing you can do to ensure your future success. Why? Because a business has zero chance of success if it doesn’t ever go from being a dream to a reality.

Here are four reasons why now really is the perfect time for you to start a business.

  1. The Christmas rush is coming

With a few exceptions, the run up to Christmas is a lucrative time for most businesses. If you can get your products or services out there in the next few weeks, you could be in time to profit from it. Starting a business during a season where people are more likely to be spending is a good way to give your company a fantastic initial boost.

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  1. You don’t have to risk it all

If you’re not ready to quit the day job and risk everything on your business, that’s okay! The number of ‘sidepreneurs’ is on the rise. Sidepreneurs are people who have regular jobs, but they pursue their businesses/paid hobbies during their free time. This can be a really good way to start a business without the risk and if you’re successful, the side business could eventually make it so you can quit the day job.

 

  1. You don’t need to be a technical genius

Don’t let a fear of paperwork and technical ‘need to know’ put you off starting your business. Help is readily available and there’s no need for you to get bogged down. If you’re thinking about forming a company, you can use an online company formation service that will save you time and hassle. Form your company in just 2-4 working hours! You can find out more about our online company formation service here: https://blog.eformations.co.uk/legal-requirements/

 

  1. Waiting won’t help you to succeed

We know we’ve said it before, but waiting for the perfect moment to start will not help you succeed if that moment never comes. Even if you don’t feel that you have enough time at the moment to fully commit to your idea, you can make it work. A few hours a day spent on a business is better than it never being started at all.

 

We’re here to help you start your business

We’re passionate about business and are here to help your start-up succeed. From a second to none online company formation service, to a brilliant business address service, and many other useful business services, we’re the best place for your business to begin. To find out more, you can visit our website https://blog.eformations.co.uk/ or give us a call for a friendly chat on 020 8232 5479.

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.

 

 

4 Reasons Why Being A Sole Trader Shouldn’t Mean Doing It All Yourself

27 August 2015

Sole traders running their own businesses all too often fall into the trap of trying to do everything themselves. When singlehandedly running a business, it is essential to remember you are restricted by the hours you personally can work. Rather than thinking that means you need to work even longer hours, work out ways you can cut down on your workload so you can focus on what you need to do for your business, while farming out the rest.

Another great reason to outsource might be that there are certain areas that you do not yet have experience in. If you’re not an excellent digital marketer, or if you’re not good with juggling numbers, marketing and accounting might be two elements you choose to outsource.

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  1. Outsource marketing

At first, marketing your business can seem like one of the fun things you can do yourself. It’s fine to set up your social media profiles and put up pictures and logos, but as time wears on, you’ll realise maintaining your digital and real world marketing is a challenging task.

Another reason to outsource marketing is that while the basics can be simple to master, trying more advanced techniques often result in mistakes that can be costly to your business. Find yourself a successful marketing agency, or a marketing expert that you really like, and work with them. It might seem like a lot of money, but you’re looking for the return on your investment.

  1. Employ a bookkeeper and accountant

You may have some number crunching ability already and if you’re very well organised, keeping excellent records of your business’ outgoings and income can be a simple task that can be done as you go along. While doing your business’ bookkeeping at first may be helpful to get an idea of how things are doing, as time goes on it will take up more of your time. Hiring an accountant can also be a good way to actually save money when filing your annual business return. A good accountant will know the tax man’s rules inside out and can help you to work the system to your advantage.

  1. Outsource company formation

Forming a company may seem like a relatively small thing to do. However, getting to grips with everything that’s involved takes time, which could be better spent working on your business. Our online company formation service will form your company in just 3-5 working hours, and there are easy to follow step by step instructions to help you through the process.  https://blog.eformations.co.uk/legal-requirements/

  1. Get a cleaner

Getting a cleaner may seem like a luxury you can’t afford, but there’s an easy way to work out if it’s worthwhile or not. If you bill more in an hour than your cleaner does, you should definitely be employing someone else to do it rather than doing it yourself.

Another good reason to get a cleaner is that having a clean and tidy place to work always helps productivity and will promote your chances of success!

Need a helping hand with your business?

At eformations, we’re here to help your business succeed. Whether you’re looking for a quick and easy company formation service, accounting and book keeping, or assistance with other business matters, we offer a wide range of services. You can find further details of what we can do for you over on our website: https://blog.eformations.co.uk. Alternatively, why not call us for a friendly chat about your business on 020 8232 5479?

 

8 Ways To Tell If Your Business Name Is A Winner

09 June 2015

You’ve done your research on how to choose a company name https://blog.eformations.co.uk/2014/08/how-to-choose-a-company-name/ and it’s passed all the tests, but how do you know if your chosen business name is a winner? You want to choose a name that represents your company well and that people will remember. You want a name you can be proud of for years to come. With these things in mind, we’ve created a shortlist of 8 ways you can tell if your chosen business name is the best one for your business.

  1. Can you say it easily?

If your company name isn’t easy to pronounce, people will find it hard to pass on and remember. If it’s awkward for you to say, you’ll soon tire of having to answer the phones with it several times a day.

 

  1. Is it overly witty or punny?

Having a clever business name is fine. However, not everyone shares your brilliant sense of humour. Be sure to test the name and remember that you’ll be stuck with a jokey name for the long haul.

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  1. Is it weird?

Your name shouldn’t be impossible to spell. Breaking a few spelling rules might be okay as long as you believe customers will be able to find you when they search for you online.

 

  1. Is it a new word?

Making a new word can be great for your brand, but make sure you find out if your new word translates well into other languages. You don’t want to pick a cool sounding name only to discover it means something obscene in German.

 

  1. Can you own the .com or .co.uk?

A dot com address is a must for any serious business. The dot com will always be respected and you should make sure your business name’s dot com address is still available, or can be purchased for a reasonable sum. Failing that, another country specific top level domain name, such as .co.uk, can be equally good.

 

  1. Is your name sticky?

This one is harder to put your finger on. Your names needs to be different and stand out while also engaging people. People should like it!

 

  1. Is it unique?

Use a business name checker to check your name. You can check your business name here: https://blog.eformations.co.uk/ It’s also advisable to run some online searches to see if your name is already taken by a competitor or another big brand.

 

  1. Is it too limiting?

You’re planning to be in business for the foreseeable future and hopefully you’ll also be looking to expand your business. If your name refers to a service or location, or uses your own name, will that still work in the future? Always think big.

Have you found your perfect company name?

If you think you’ve got the perfect name for your business, the next step is to register your limited company. We provide an easy to use, stress-free online company formation service. To find the right company formation package for your business, please visit our website https://blog.eformations.co.uk/. Alternatively, you can call us on 020 8232 5479 for a friendly chat.

 

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.