Recently, I have been contacted by someone who is at the stage of considering becoming a solopreneur coach. She described herself as a ‘fledging coach’ ready to jump from the corporate nest to fly solo. It got me thinking about what would support this ‘jumping off’ mindset the most as she talked about how to set up a business from scratch. As I thought about it more, I dug out the picture taken in my garden of a wren's nest which we watched until they jumped!
I remember well my lack of knowledge when I started out around the types of business formats there are and what some to the responsibilities of being a business owner lead on from these choices. To help me work out how to enact on my business plan, I attended a webinar on how to set up a small business and learnt about the types of business entity existing here in the UK. It dawned on me that this first decision of business type was fundamental to how to get into the mindset of being responsible for my business and it's build with courage.
Until this point I was spending too much time on what to call the business without really understanding the terminology behind what the LTD part meant. It was a wake-up call to acknowledge that all business owners must decide on the company type as this is a key step to understanding your commitment and obligations to the business, its customers and employees, and the government and country in which the business operates.
An important factor will be if you intend to be a solopreneur or work with partners and/or have employees. The business's scale might determine this; therefore, your business plan will also help you decide on what legal format you choose.
A decision on the legal format also gives you more clarity on your cashflow steps through knowing your taxation and reporting timelines and you can work through your business plan again with all the new obligations in mind.
The clarity allowed me to speak with knowledge to my accountant and make decisions on my financial targets and costs and it gave me courage to jump forward in business ownership with pride.
If you are looking to understand more about the legal entities in the UK and using this as a jumping off point, then you can find out more through the Solopreneur Coaching community and your governments small business guidance. Time for more fledglings to fly!