What Start-ups Wish They Had Done Differently with Company Formation
Company Formation Accountants
Company formation can be a daunting and overwhelming process, that without the right help and advice lead to mistakes being made, which can have a massive impact on the overall business success.
With the unwelcome COVID-19 pandemic this year leading to many unfortunate redundancies, more people than ever are taking the plunge, considering starting their own business and being their own boss.
Businesses often reflect on what they would do differently if they had the opportunity to. Read some of the most cited mistakes that company’s make here – it might make you think twice!
Choosing the Right Address at the time of company formation
When registering a new company, it might be the case that you don’t have a separate head office address initially. HMRC and Companies House require a bricks and mortar address to be used for the registered office.
It is often seen as an unimportant decision, with many putting their home address and moving on. However, this can impact you more than you might think. This address is then available online permanently on Companies House, even if changed later which people don’t realise.
To protect your privacy and receiving unwanted mail or even unexpected sales visits, it’s best to avoid associating a home address with your business wherever possible. There are a few ways around this including using a service provider’s address (e.g. your accountant)
Selecting the Appropriate Company Name
Getting your company name right initially is a big regret for many companies. As is it usually the first decision to be made, it can be one that as you get further along in the process, it doesn’t fit with the company.
Although the company name can be changed later, the cost associating with rebranding can be huge – things such as website redesign and merchandise all need to be considered – and your overall brand awareness is also likely to suffer.
Try to choose a name which is memorable yet descriptive of the service you offer.
Choosing the right Business Partners
A new business is stressful and testing on working relationships. It’s important when selecting a business partner, there is a shared objective, vision and plan for the day to day running of the business as well as the future goals. It is very common for friends to enter business together, but butt heads and sever the friendship altogether.
Starting a Limited Company Sooner
Sole traders have cited that they wish that transitioning to becoming a limited company much quicker than they did. A limited company has its advantages including a reduction in tax paid which can be reinvested in the company.
Hiring an Accountant Sooner!
One of the most critical processes to get right is business is accounting and finance. Accurate bookkeeping records are something that can be overlooked, often with the director not having any knowledge of how-to successfully monitor payments in and out of the business. This results in lost money, late payments and dropping the ball in terms of HMRC requirements. Ensure you consider hiring an accountant as soon as possible, the benefits far outweigh the costs!
6 Wands are an Accounting company with a difference. No confusing language or demands, we can handhold you through the early days as little or as m
uch as you want.
Contact 6 Wands Accounting Today
6 Wands Accounting are experts in company formation and advising start-ups on how to successfully set up their company. Contact us on 0121 550 0221 or email email@example.com and we will show you how we help businesses to take control of their finances.