How to start an online business

How to start an online business

Are you willing to get started with a business online? It is actually an ideal choice. An online business has got a few benefits when compared to a conventional brick and mortar business. Your business would be exposed to the incredible numbers of Online surfers, there is no need for an actual physical storefront while you can easily operate from virtually any place you prefer as far as an Internet connection is always accessible.

If you like to understand how to embark on a business online but have no clue what sort of business you intend to engage in, I recommend you to take a shot at affiliate marketing.

Exactly what is affiliate marketing about? First and foremost, an affiliate marketer is a person that assists to promote some other business owner’s product. Whenever there is a successful sale from the referral of the affiliate marketer, the owner of the product is going to pay the affiliate marketer a fee, commonly around 50% to 75% of the sale. Affiliate marketing is likewise a great place to commence for individuals who do not possess any previous knowledge starting up a business online.

What exactly do you require to begin an affiliate marketing business online?

  1. A Niche You Wish To Focus on – Search for the distinct niche that you would like to go for and step into it. This really is the first as well as one of the vital essential procedures to carry out before you decide to establish an online business. Opting for a niche that you have got practical knowledge and interest highly recommended.

If you opt to focus on a parrot training niche for instance and you completely detest parrots, you will probably be tormenting yourself by establishing a business in the parrot training niche. Therefore, I propose you that you select a niche that you possess knowledge and interest on.

  1. An Item in Your Niche – The second action to take should be to search for a product to market in the niche that you like to focus on. You may proceed to www.Clickbank.com  or www.CJ.com to study for items that include an affiliate program. An alternative way to hunt for an item to market is simply to look up it directly by using the major search engines. Take for instance you intend to look for products on parrot training that includes an affiliate program on the web search engine, you can input “parrot training affiliate”. Carefully surf over all the affiliate products and programs accessible and figure out the one you would want to promote.
  2. Secure a Website domain And Begin Selling – Once you have decided on a product that you want to promote, you can acquire a domain and begin selling the product. Despite the fact that a website is optional, however, it is best suggested that you obtain one. Then after you are done developing the website, the time is right to initiate bringing targeted traffic to the website to generate the product sales.

Choosing your business structure

Choosing your business structure

Sole Trader

What is a sole trader?

A sole trader is a self-employed individual who is solely responsible for their own business. It is most common to start as a sole trader as it requires minimal set up, cost and administration.

When and why should you register as a sole trader?

If your business is a low cost start up and you are not going to need to borrow money to grow your business then being a sole trader may be right for you at this moment. However, it is important to understand that you alone are responsible entirely for all costs of the business.

As a sole trader it can be quite a lonely and exasperating journey. However, the advantage of being in full control and being your own boss and doing what you are passionate about may be what makes up for the uncertainty and heavy responsibility that comes with it.

How to register

Although you are not required to register at companies’ house, you must notify HMRC that you are self-employed within 3 months of starting.

You will need to register for your self-assessment and then file a tax return yearly.

You’ll need to keep a record of all your business transactions preferably on bookkeeping software.

You’ll also need to pay Income Tax on your profits and Class 2 and Class 4 National Insurance

ClassRate for tax year 2017 to 2018
Class 2£2.85 a week
Class 49% on profits between £8,164 and £45,000
2% on profits over £45,000

As a sole trader your business is not thought of as a legal entity therefore you will be solely responsible for all debts and legal action taken out against you.

So whilst you may benefit from having less regulations and paperwork to deal with, the high risk that comes with being a sole trader may make you think about registering as a limited company instead.

Private Limited Company (LTD)

What is a private limited company?

A Private limited company is a business that is owned by its shareholders and run by directors. The ownership of the company is split into shares and is owned by the shareholders. The directors run the company and are required to perform certain duties for the company and its shareholders.

What does ‘limited liability’ mean?

This means that all debts that are incurred are the liabilities of the company and not of the shareholders or the directors. So if the company was to go bankrupt, the shareholders would only lose the investment they put into the company, but their own personal assets would not be affected.  The directors also do not incur any personal liability as the act as agents for the company.

Requirements for forming a Private Limited Company

  • To set up a private limited company you need to register with Companies House. This is known as ‘incorporation’.
  • At least one director over the age of 16 must be appointed.
  • The company must have a registered office in the UK.
  • The company name must comply with Government regulations
  • At least one share must be issued at the time of incorporation.
  • An address for the company
  • Details of the company’s shares (At least one shareholder is needed)
  • To check what your SIC code is (identifies what your company does)
  • Shareholders to agree to create the company and the written rules (known as ‘memorandum and articles of association’)
  • Details of people with significant control over your company

Register your company

Once you have these details, you can register your company.

It costs £12 to register online and £40 by post

Your company is usually registered within 24 hours online and 8 to 10 days by post.

After you’ve registered

Once the company is registered you’ll get a ‘certificate of incorporation’. This confirms the company legally exists and shows the company number and date of formation.

You’ll also need to register for Corporation Tax within 3 months of starting to do business.

Business legal structure comparison table

 

(www.startups.co.uk)

TypeStructureForAgainst
Sole traderExclusive owner of the business, entitled to keep all profits but liable for all losses

·         Low cost, easy to set-up

·         Full control retained

·         Very little financial reporting

·         Full liability for debt

·         Pay more in tax

·         Lacks credibility in market

PartnershipBetween two or more individuals who share management and profits

·         The above, but with more heads

·         More potential to raise finance

·         The above, affecting all partners

·         Can be messy to wind up

Limited companyPrivate company whose owners are legally responsible for its debts only to the extent of the amount of capital they invested

·         Less personal financial exposure

·         Favourable tax regime

·         Ability to work for corporate clients

·         Administrative and regulatory demands heavier

·         Annual accounts and financial reports must be placed in public domain

Limited liability partnership (LLP)Some or all partners have limited liabilities, and exhibits elements of partnerships and corporations

·         Flexibility: can be incorporated in members’ agreement

·         Advantages of limited company and partnership combined

·         Profit taxed as income

·         Partners must disclose income

·         LLP must start to trade within a year of registration – or be struck off

Extremidy is a business management company. Our aim is for small businesses to, connect, grow and succeed, by providing them with support, networking and assistance. Please like our Facebook and Twitter page to keep informed of all our news and helpful business advice.
Extremidy Team
www.extremidy.co.uk

Hiring your first employee

Hiring your first employee

Job Description

The first thing you need to do, once you have decided you need to hire staff, is too write the job description, this will enable you to clarify what exactly it is you require from an employee and will also help you to write the job advert. The job description needs to include; job title, job description, the mains tasks and responsibilities along with wages, location, hours and basis. You will also need to include, knowledge, skills and qualifications desired or essential.
Advertise for the role
You can advertise your jobs;
Online- This is the more popular choice and less expensive than the more traditional choices. Popular places to advertise online, are:

  • • Reed
  • • Indeed
  • • Universal Jobmatch
  • • Gumtree
  • • Extremidy Advertising
  • Newspaper
  • Recruitment Agencies
  • Your own website
  • A notice in your window

Shortlist and interview candidates
Once you have shortlisted your candidates, based on their appropriate job description and their cv you will need to invite them in for an interview.
Before the interview, you’ll send each candidate a warm, friendly email message reminding them of the date and time for the interview, the job title they’re interviewing for and the names and titles of the people they will meet at the interview.
On the interview day, this will be your chance to get to know your candidates by asking them a few questions and allowing them to ask you questions. Here’s a few things you can discuss.

  • What is this company all about? What do we do?
  • What is (the interviewers) role?
  • What is the job role?
  • Why are you hiring?
  • What will the candidates job entail?
  • What are the working hours, pay schedule, and general operations of the job role?
  • What is the training and career path opportunities for this job?

You will need to ask your candidate a few questions to help you to get to know them a little better, here’s a compiled list of questions to get you started:

  • What prompted you to apply for this job? What interested you the most about this position?
  • What are the three most important attributes or skills that you believe you would bring to our company if we hired you?
  • How do you go about continuing to develop your professional skills and knowledge?
  • If I were to poll everyone you’ve worked with, what percent would not be a fan of yours? Then, if I were to interview these people, what words would they most frequently use to describe you?
  • What’s the biggest decision you’ve had to make in the past year? Why was it so big?”
  • Why should we hire you?
  • Why do you want this job?
  • How do you handle stress and pressure?
  • What are your goals for the future
  • Do you have any questions?

Decide on candidate
Once you have held all the interviews for the role, you will need to decide on a candidate. The candidate you choose to hire will solely be based on your decision, after you determine whether they have the necessary skills, qualifications and experience, which you would have gathered from the job description, and you have completed the interview, which should have given you a better idea of how your candidate thinks and why they want to work for you. You will then have to decide who is best for your company, which should be based on your company’s culture and what the job entails. You should also talk it out with the other interviewers if possible to see their thoughts, but ultimately its your decision. Just ensure that your final decision is not based on a discriminative basis. Learn more here about avoiding discrimination when hiring.

Complete checks and provide a written statement of employment
Decide how much to pay someone – you must pay your employee at least the National Minimum Wage which is currently £7.83 (April 2018).
Check if someone has the legal right to work in the UK.
Check if you need to apply for a DBS check if you work in a field that requires one, eg with vulnerable people or security.
Get employers’ liability insurance .
Send details of the job (including terms and conditions) in writing to your employee.
Tell HM Revenue and Customs (HMRC) by registering as an employer – you can do this up to 4 weeks before you pay your new staff.
Check if you need to automatically enroll your staff into a workplace pension scheme.

Extremidy is a business management company. Our aim is for small businesses to, connect, grow and succeed, by providing them with support, networking and assistance. Please like our Facebook and Twitter page to keep informed of all our news and helpful business advice.
Extremidy Team
www.extremidy.co.uk

Extremidy Flyer

Could your business benefit from having a virtual team behind you. If you spend more time on administrative tasks then on actual revenue generating tasks, then Extremidy can help you. We can offer you virtual support by providing a number of useful services.

 

 

Extremidy is a business management company. Our aim is for small businesses to, connect, grow and succeed, by providing them with support, networking and assistance.
Please like our Facebook and Twitter page to keep informed of all our news and helpful business advice.
Extremidy Team
www.extremidy.co.uk

 

Revamped website

We have finally finished revamping our website.

We took some time to redo our website and re-strategize our service offerings. So, we know offer a more substantial and useful service for you and your business.

We still offer you the ability to advertise your business, job vacancies and events, but we know also offer you the ability to sell your products and services, all of this has now been moved to our new site, extremidyadvertising.co.uk.

We have also added our business support service, where you can have the support of a virtual team behind you, who can offer you, virtual administration, virtual bookkeeping, virtual marketing, virtual event management and much more.

So, don’t wait any longer to have the support you need for your business, find out more today at www.extremidy.co.uk and let us share the extra workload.

 

 

Extremidy is a business management company. Our aim is for small businesses to, connect, grow and succeed, by providing them with support, networking and assistance.
Please like our Facebook and Twitter page to keep informed of all our news and helpful business advice.
Extremidy Team
www.extremidy.co.uk