How and Why setting up a company is important to you?
A lot of people are self employed and sell their trade (physical or service) and these are sole traders. Its very easy to start, and very common amongst freelancers (designers).
Its easy to set up, but be sure to set up clear records for financial reasons. The tax has to be paid accordingly, and the tax man will calculate how much is owed and this is unarguable.
After this (from the 1750's onwards) as trade are, partnerships grew and developed as individuals need more money in order to develop a trade. 2-3 people combine to make up the money needed, in return for a financial gain at the end (i.e. a financial gain). These people agree so the partnership would seem simple, however in government/law a two person agreement would automatically be set to 50/50, and the liability is split 50/50 too. This proves trust, often accountancies and lawyers use this, to prove they are trustworthy and have a professionalism. Its imperative to make sure you know fully who you are going to a partnership with.
Sleeping partners- provide the financial support but has no responsibility in the business management, just take their share of the profit at the end.
Victorian times meant people needed more money and people to invest. Government (UK uniquely created) LTD. This means whatever you place in the agreement, that is ally are liable for, e.g. £10,00. Americans call this INC. Limited Liability Firms means a lot of people can help place money in to a firm, and know the value of that risk. It also meant people could invest in a variety of firms. The company however has to publish their accounts in order for a fair agreement. The investor must be fully aware of the profits/loss and have these checked bean indecent auditor. These must be published annually, with a statement of profit or loss, a balance sheet statement (assets and liabilities) and a list of directors and addresses. This data is all lodged with Companies House (government run repository.)
Starting a LTD firm
- easy
- buy off the peg from a solicitor
- takes 2 weeks to be running
- be aware of paper work
- costs around £200 to set up
- stopping a ltd firm is difficult
- ltd firm is a "person in law"
- It has the same rights as you or I.
- must do what is best for the firm and not for yourself
- what is the firm, is the firms, not yours
- conflict of interest may occur
This has been spread out and copied all over the world.
PLC- Public Limited Company.
- e.g. London stock market- who buy and sell shares.
- open to anyone
- short term or long term investment consideration
Issues of debt
- must understand costs
- look at how things are spent and why
- must know money control
Cash flow is the most important part of a businesses. The only must flow in and out, regardless of profit. The outgoings just have to be in no excess of the in-goings.
Entrepreneurship and Business Engagement
- entrepreneurship
- being in business
- filling a gap in the market
- geographical
- specialism
- ability
- product
- Know your competition
- it may take a while to get on to the ladder
- businesses are risk adverse
- your competition is anyone e.g. print, or animators that are doing a design job
- what is your aim?
- financial gain
- kudos and a reputation (would you rather think out side the box and be iconic in what you have made) (do you want to take risks?)
- society/aid... want to use design to help out.
- How do you succeed?
- go for it (make sure your good idea is the first idea)
- just do it (don't let someone else pip you to the post)
- make it work (you have to have the desire to make this happens) ( have to be committed)
- Tenacity
- don't give up when there are problems
- work through the issues
- solve the problems that occur
- must have drive to get back to where you wan to be
- Don't be precious
- our ideas will get criticised
- change must occur, be open to this
- your work will always want to be modified
- have courage and grace to accept alterations
- listen to what others want, that will reduce the changes.
- Ability to do
- practically, what is possible
- pragmatic
- ability to ask
- do you need to act
- or initiate action
- chase up what you want done
- manage in reverse... don't be late for the client. Set an earlier deadline to be on the safe side.
- It's not what you know, it's who you know
- not ideal
- get over it
- make your own network
- develop yourself through connections
- understand it and use it.
- who should you know?
- what is the cost/ return
- if someone is going to help, will they expect that returned
- this is a cost to you
- know what this is in advance
- favour done, a favour is owed
