For new businesses you will have to think through all the ramifications of a limited company. As a new company your future success is not guaranteed and there is a lot to take into consideration. Having a good idea is not enough for it to be worth opening a limited company. No matter how small your new business is it will need to have a firm structure, policies and procedures in place in order for it to operate as a limited company.
Pre-existing businesses will already have an idea of the responsibilities involved and so scaling-up to being a limited company may be easier than for newly established companies. Pre-existing businesses will also have a better idea of the company’s identity and the direction they are going in.
For sole business owners considering becoming a limited company you must be willing to take on all the responsibilities of a limited company by yourself. This could include running a website, marketing, account management and more. It could be too much for one person to handle. So jumping straight from being a sole business owner to a limited company may not be the best idea.
If making the move from a pre-existing business; a sole owner of a business or if you are setting up a new business from scratch you should consider getting help to make the change to a limited company smoother. For example you could employ the services of an accountant; a web developer or office manager.
Test Run your New Limited Company
You may have decided on a fantastic idea for your limited company and you may be really enthusiastic about it and believe in the idea but this does not mean there is a market for it. It is imperative that you conduct market research to ensure you are offering something that people need or want.
If you can answer these important questions about your business then you are on the right track; if not then you need to rethink your business plan:
- Do people need what you are offering?
- Can you make a profit from it?
- Does your product or service really work and deliver what it claims to deliver?
- Is there a big enough market for the product/service in order to sustain a long-term business?
Identify your Target Market
Any company big or small must have customers; it could be individual members of the public or other businesses – but there still have to be customers. The more you know about who exactly your customer market is the better you will be able to market and sell your product or service. Identify where you find your customers; how they interact with your company; what interests them; what are their needs and wants then you will know how to market to them.
Finalize your Business Plan
A new company or a pre-existing business that is expanding to be a limited company needs to have a clear plan of where they are heading. This must be formalized into a professionally organized business plan. The business plan should contain all the information you need in order to pave the way for your business’s growth. The business plan can be changed as need be along the way but it is important to have these vital guidelines.
Banking and Payments possibility
Be sure that your company structure and industry are able you to open business bank account in Europe.
Established a Business Budget
It is vital that you know how much your business will cost to establish and to run. No matter how good your idea is it still needs to be funded. You need to know the set up costs; price of development; advertizing and all that is necessary before the product/service’s general release.
Forming a limited company is a big step for any business. It signifies significant growth and comes with immense responsibility. The most common form of a company is LTD or limited company and these can be formed in many different jurisdictions. Consult with experts as to which jurisdiction suits your company best and employ the services of knowledgeable professionals in each step of the journey towards being a limited company.