Financial Advantages of Becoming the Owner of a Small Business

A small business is generally defined as one that employs up to 49 people, though the majority of such businesses in the UK are much smaller. In fact many operate as sole traders and do not have any employees. The Department of Business, Innovation and Skills estimated that, at the beginning of 2012, there were 4.8 million businesses in the country, with 99 per cent of them being classified as small.

Owning a small business

There are several routes into becoming a small business owner; starting one from scratch, inheriting a family business or buying one already in existence. However it is done, owners need to accept that there will be lots of hard, but ultimately satisfying work to be done. For instance, owning a brick-and-mortar store will come with its challenges, no matter how long a business has been operating. From physical security to money transactions, all of these have to have a plan behind them to make sure that you turn a profit as well as keep your customers satisfied.

Start-up

Perhaps the most exciting, but also the most nerve-wracking part of the entire process, is starting up a business. From building an own website to amplifying marketing efforts with the help of companies like GoSite to improve online presence, there are numerous factors that need to be taken into account while building a start-up. This may be as a result of an individual having a brilliant idea and believing there is a market for it or an employee of a company who has had enough of working for someone else and wants to strike out on his or her own.

Inheriting

Family firms are a well-established part of the UK’s small business economy. It is usual for a family business, whether large or small, to be handed down through the generations. It is also likely that the children of the family will have worked in it themselves for many years, so they get to know all the intricacies of the business. Perhaps even more importantly, they will have had the opportunity to interact and build up an ongoing relationship with both suppliers and customers.

Buying

Many small businesses become available on the open market, either when the proprietor retires and their family is not interested or when the owner decides to embark on a different business venture. Here, the advantage is that the business will have been trading for some time and have systems in place that can either be used or modified by the new owner. For example, if you are taking over a restaurant, it would become essential for you to look at all aspects of the business – from the style of the place to the insurance (look at sites similar to https://www.thimble.com/places/restaurant-insurance for more information) of the restaurant. It is a cumulative deal after all!

What are the financial advantages?

There is no doubt that setting up a business can be a daunting enterprise, but there are many advantages to be gained, both personal and financial. Some individuals may have the entrepreneurial drive to build their small business into a multi-national company. Others may be quite happy operating as a sole trader, making enough money to cover the monthly bills while enjoying a laid-back lifestyle.

For example, someone might start a restaurant and carefully select every detail, from the menu to the décor, including the perfect restaurant furniture, which can be bought from Plymold (https://plymold.com/restaurant/) and other similar providers. This can set the desired ambiance. Now, they could aim to grow into a renowned chain with locations worldwide, or they might prefer to keep it small and local, focusing on creating a cozy dining experience that reflects their personal style and meets the needs of their community.

Whatever the reason for becoming a small business owner, there are a number of financial benefits to be gained. There are a range of business expenses, such as travel, equipment and depreciation that can be offset against either personal tax, in the case of the sole trader or Corporation Tax when a limited company has been formed.

Setting up their own small business is ideal for anyone who as an idea for a product or service they would like to develop themselves. Alternatively, it might be the case that they have become bored working for an employer and are looking for a new challenge. Others may wish to change their lifestyle; the internet has made working from home incredibly easy, making it possible to change the work/life balance to suit individual circumstances.