Starting a Successful Business - Term Paper Example

Abstract There are several cases whereby people are coming with business initiatives some of which are not legitimate at all. Business enterprise establishment need a number of requirements so as to be able to be legitimate. This is not only a common requirement in chosen countries but in all countries across the globe. This paper highlights on establishment of legitimate business enterprise with focus placed on the United Kingdom. An overview of its content include considerations to make while establishing a business enterprise, requirements for establishing a business enterprise, advantages of having a legitimate business enterprise and what features ascertains legitimacy of a business enterprise. Table of Contents Content Page Title Page 1 Abstract 2 Table of Contents 3 1. Introduction 4 2. Establishing a Legitimate Business Enterprise in the UK 5 a. Considerations to Make 5 b. Requirements for Business Enterprise Establishments 6 c. Advantages of Establishing a Legitimate Business 8 d. Ascertaining Legitimacy of a Business Enterprise 10 3. Conclusions 10 References List 12 Establishing a Legitimate Business Enterprise in the UK 1. Introduction The United Kingdom has of late become a core trading destination and trading partner for quite a number of countries across the globe, as well as individual business entities. The economy of the United Kingdom is depicted to have evolved from a state of being a base of predominance manufacturing to one which is aligned to new developments as far as biosciences and technology are concerned (Luff 2011:24). The country has been in the forefront with a number of investors seeking business opportunities from within following these and many other reasons which are beneficial for business initiatives. However, there is need to figure out whether a particular business is legitimate or not, and/or whether a given business is genuine or not. Gelderen et al (2005:103) notes that this follows the fact that the United Kingdom’s attractiveness has tremendously increased following expansions and developments in the European Union. The country has been identified as having excellent links for communication especially for the rest of the European Union, thereby making it more attractive for investment. This fact has also been attributed to a number of illegitimate businesses coming up in the country. This calls for establishment of systems to verify legitimacy of a business in the country before one chooses to associate any given business. This paper attempts to look into establishment of business enterprises in the United Kingdom with focus placed on legitimacy (Doornkamp 1995:76). The paper also seeks to look into factors and requirements that are attached to establishment of business enterprises in the United Kingdom, as well as implications for the same. 2. Establishing a Legitimate Business Enterprise in the UK When there is a company seeking for business with the United Kingdom, there are normally implications based on fiscal aspects. These are not complex or so cumbersome to engage. However, there are a number of practical provisions which investors need to know so as to ease their prospects for undertaking business establishments in the country (Syrett and North 2008:165). This follows the fact that there is need for verification whether a there is legitimacy as regards the so referred to business or not. a. Considerations to Make When one intends to start a business in the United Kingdom, there are a number of factors that s/he has to consider. One of the factors that need to be looked into is the fact that every business has to fill a need which has to be definite at the same time. This implies that if at all a business does not appear to demonstrate any form of service which would make people to pay for, then that means that there is lack of reasons for investing in the country (Morris 2011:139). This is due to the fact that a business which fails to have this in mind has inadequate potential to establish itself successfully or has totally no any potential for the same. Another important factor to look into is whether or not the prospected market is one that is over concentrated with other business initiatives especially the one being focused on (Peng 2004:107). For instance, there are a number of businesses with thousands of associated programmes for promoting similar products and/or services at any given time. This renders it difficult for any affiliated businesses to engage appropriately in their businesses. This is attributed to the fact that they are charged to compete with one another so as to attain more or less similar traffic as far as their businesses are concerned. Kaler (2000:258) notes that even though it is fine in case there are other investment initiatives with similar products or services, the UK market dictates the need to have allowance for growth and development or else a given business is deemed to fail in the long run. Another crucial consideration to look into in the case of need to establish a legitimate business enterprise in the United Kingdom is costs to startup the business. The country has a very competitive business environment; therefore, approximately each business has to have some form of startup business linked to it. Smith et al (2003:287) point out that “Some businesses are much higher than others. The nice thing about starting a business online is that the costs to get started are usually minimal. Business owners don't have to go out and buy a piece of prime real estate, and pay for a building to be constructed”. This implies that they can rather develop websites so as to get them started with their business initiatives and plans. b. Requirements for Business Enterprise Establishments For one to have its business established as legitimate in the United Kingdom, there are requirements one of which is to acquire a permit for business. This is attainable from either local or state governments in the country. Apart from this, one requires to have permits for any other single additional sublets of the same. This calls for fees chargeable for each signage store so as to avoid going overboard (Luff 2011:26). In case one is capable of acquiring a fire extinguisher for its business, there is necessity to do so by paying for a Fire Department permit thereby having own fire engine. Another requirement is choosing of business enterprise name. Marshall (1994:47) notes that “most residence based companies use sole proprietorship as the form of their organization. Assuming that you’ll do the very same and you intend to use your own name for your organization, there won’t be any need for registration then”. Nonetheless, in case one intends to operate his or her own business enterprise under a different name then he or she has to register the business according to provisions of Trade Name Registration Act. An alternative of names are normally required in case there is need to come up with another one. Occasionally, legitimacy is determined on the basis of a business enterprise’s name (Smith et al 2003: 293). This implies that there is need to take care when selecting names for the intended business enterprise so as to ascertain that legal stipulations are adhered to. Though generic names for business enterprises seem appealing most of the time, the UK law requirements do not approve of them for use as business names. Establishment of legitimate business enterprise in the United Kingdom also calls for correct and timely payment of taxes to the state. Purchasers generally have greater esteem for business enterprises which are diligently managed and run by obedient taxpayers apart from them being quick to trust enterprises of such kind. Establishment of legitimate business enterprises, in this case, also calls for keeping business books meticulously (Luff 2011:25). This follows the fact that business enterprises entitled to specific property or premises have to abide by documentations proving their loyalty deductions. Apart from the above requirements, establishing of a legitimate business enterprise in the United Kingdom has the business get accreditation. This means that a business enterprise has to make efforts to acquire a reputable rating from the Greater Enterprise Bureau so as to prove their legitimacy. A business has to be evaluated by the BBB and one has to pay some fee for business enterprise accreditation. According to Gelderen et al (2005:98), “one has to pay even if not liking the end result. Aim is to have the BBB Online Reliability seal on one’s business enterprise website. Business buyers can guarantee that it is not a fake since they can click on the confirmation link redirecting them to the BBB website”. This helps ascertain the guarantee of business enterprise ownership. c. Advantages of Establishing a Legitimate Business Enterprise in the United Kingdom A number of United Kingdom’s legitimate businesses are either solely owned, in partnerships or by private entities. It is therefore an essential decision to choose a right type of proprietorship for any given business enterprise (Syrett and North 2008:163). In particular, there are payable taxes in the United Kingdom referred to as corporate taxes. These taxes are arrived at differently on the basis of income along with taxes on capital gains. However, businesses do enjoy a number of advantages once established in the United Kingdom. One of the benefits which legitimate business enterprises enjoy is legal continuity. This means that a business enterprise is capable of owning a property and is entitled to sue and on the other hand be sued. Business ownership that is effective or part of the same is transferable provided the provisions in Articles of Association are adhered to. The main aim of getting a business enterprise registered is to have the advantage of the provisions of its limited liability status. The implications of this are that any legitimate business enterprise is a lawful entity on the basis of its own rights. Following this, any business assets are made available for its creditors (Luff 2011:25). This is however not the case with individuals running the business. Therefore, one can only be considered liable for any monetary benefits which she or he has paid, or in case of agreements based on business shares. Another advantage of having a business enterprise legitimized is the fact that no any other business can be established with a similar name or any that is deemed so close to an already registered business enterprise. According to Morris (2011:141), “You may also find that a limited company creation makes it easier to attract business, as a lot of companies seem to be more willing to deal with a contractor that is a limited company. Obtaining finance for your business may also be helped by this”. Apart from these, it would also be possible to maintain business continuity in case the business is sold out or in the event that there is death of its proprietor(s) or changes for the same. As opposed to a sole trader or for the case of a partnership, a business enterprise will be enabled to legally exist separately. This implies that the business will in itself encompassing contracts and its property will be under signatory of the business as an entity. Other people such as the management and employees can only act as agents to the business. The business enterprise will therefore keep in operation whether there are changes in its management or not (Luff 2011:25). Furthermore, as opposed to partnerships, the business enterprise cannot be dissolved upon bankruptcy, death or resignation of its proprietors. Being legitimate, a business enterprise in the United Kingdom can only be done with by way of either liquidation, winding it up or through an order by courts or of the Registrar of Companies. Another benefiting feature in having a business enterprise legitimized in the United Kingdom is that there is room for limited liabilities. Following this, liabilities of shareholders are limited in regard to the values placed on shares they are holding in case anything goes wrong in the process. Gelderen et al (2005:98) point out that “the personal assets of the proprietors cannot be seized so as to pay off debts. Only property owned by the company can be touched unless it is for the case of fraud when the proprietors may be found personally liable for losses if they knowingly incurred debts they knew or should have known the company could not or was unlikely to repay. Therefore, having a business legitimized by way of registration is essential in protecting its name following the fact that its name has to initially be verified by Companies House which is charged with maintenance of company names registers (Luff 2011:26). Against this, it can be checked and ascertained that the names selected for any other business enterprises are not being used. d. Ascertaining Legitimacy of a Business Enterprise in the United Kingdom One has to verify if the business enterprise has a legitimate address, as well as other contact information such as phone number(s). apart from this, there has to be considerations placed so as to have new registrations kept away from business enterprises which use postal office boxes as their corporate addresses (Kaler 2000:258). This follows the fact that this gives provisions for such business enterprises to be only reached to by way of leaving messages through the help of answering machines or in case of provisions for call-centre operators, then that can be applicable. Another important factor is verification of the business name having been registered especially with key business directories. Besides, there is need to verify if the business is legally licensed by the state. It is also important to inquire about the possibilities of the business having itself being made a member of any association of professionalized business entities. This can be done through contacting the relevant o0rganizations concerned with the same (Peng 2004:99). Apart from this, there is trust certificate certifying legitimacy of any legal and genuine business in the United Kingdom. 3. Conclusions From the facts pointed out in this paper, it is evident that business enterprises have to be established legitimately so as to operate in the United Kingdom. When it comes to beginning a business enterprise, there are ample opportunities which are considerable for starters. This follows the fact that there are no legal barriers in the country provided that one adheres to the stipulated legal requirements. However, it is also evident that a number of the opportunities are legitimately available even though some are not. Therefore, when one is selecting an opportunity for business to pursue in the United Kingdom, there is need to carry out some research on legitimacy of the prospected business enterprise. This would be helpful in ascertaining that not much funds are invested into a business enterprise which cannot generate back upon initiation. References List Doornkamp, J. C. (1995). Perception and Reality in the Provision of Insurance against Natural Perils in the UK, Transactions of the Institute of British Geographers, New Series, Blackwell Publishing; Vol. 20, No. 1, pp. 68-80 Gelderen, M., Sluis, L. and Jansen, P. (2005). Learning Opportunities and Learning Behaviours of Small Business Starters: Relations with Goal Achievement, Skill Development and Satisfaction, Small Business Economics , Springer; Vol. 25, No. 1, Special Issue on: Organizational Determinants of Small Business Performance, pp. 97-108 Kaler, J. (2000). Positioning Business Ethics in Relation to Management and Political Philosophy, Journal of Business Ethics, Springer; Vol. 24, No. 3, pp. 257-272 Luff, P. (2011). HC Paper 292-II House of Commons Business, Enterprise & Regulatory Reform Committee: Post Office Closure Programme, UK: The Stationery Office; Vol. 2, p. 23-26 Marshall, J. N. (1994). Business Reorganization and the Development of Corporate Services in Metropolitan Areas, The Geographical Journal, Blackwell Publishing; Vol. 160, No. 1, p. 41-49 Morris, M. (2011). Starting a Successful Business: Choose a Business, Plan Your Business, Manage Operations; London: Kogan Page, p. 139-142 Peng, M. W. (2004). Identifying the Big Question in International Business Research, Journal of International Business Studies, Palgrave Macmillan Journals; Vol. 35, No. 2, pp. 99-108 Reuvid, J. (2006). Start up & run your own business: the first steps, funding & going for growth (4th ed.), London: Kogan Page; p. 63-66 Smith, P., Pont, M. and Jones, T. (2003). Developments in Business Survey Methodology in the Office for National Statistics, 1994-2000, Journal of the Royal Statistical Society. Series D (The Statistician) , Blackwell Publishing; Vol. 52, No. 3, pp. 257-295 Syrett, S. and North, D. (2008). Renewing neighbourhoods: work, enterprise and governance, Bristol, UK: Policy Press; p. 163-167. Read More