Not everyone is interested in keeping up to date with government policy on new businesses and what goes into launching a legal business, and that is fine. Most people will not look into a subject that doesn’t affect them directly.
So if this is your first time looking into the legal and statistical side of business, don’t worry. We have outlined the basics of all you need to cover to get going.
Remember, that you don’t have to solidify your business model and financial plan in stone before starting out. Having a plan with the least amount of risk involved and a place to start is sometimes good enough.
Step 1: Get registered
Different countries may have different requirements for this registration, but you will need to get a license to run a business, and register yourself. So find out what the procedure is for your country and get this out of the way.
It is required for a number of reasons. One is that the government needs to know what kind of business you are running and ascertain the legality of all the processes involved. However, the main thing that is behind this registration and by virtue of which you will be allowed to make money in a country is: taxes.
This is the next step as well.
Step 2: Figure out what taxes you will be subject to
Usually there are four types of taxes that a business will most likely have to pay and they are:
⦁ Income Tax
⦁ Employment Tax
⦁ Self-employment Tax
⦁ Excise Tax
There might be others, for example if you have a store or a space with your brand logo and name displayed outside, you have to pay tax for that publicity.
Which ones your business is subject to and how much you need to pay depends on the type and scale of your business. So you will need to do thorough research on that.
Step 3: Trademark
To become a legit business and to show that you are serious about your work it is always good to trademark your name and any brand design such as logo etc.
Trademarking will make that name and logo exclusively yours. You will need to pay a sum for that but after that no one else can use it. If they do, you have legal rights to sue.
It definitely makes things official and help build brand identity. This is, in fact, the first step towards building your brand image.
Step 4: Take a thorough look at labor law
Since you will be hiring, you need to know what your employees have a right to. This includes everything from wages, salariesand other allowances, to the work environment.
Going into these things without any preparation can cause some really unpleasant situations for everyone involved.
You don’t want to come across ignorant and unprepared and besides, it is just the decent thing to do to give employees their due rights and make the work environment as amicable as possible.
Scandals regarding treatment of employees can ruin a company’s image. And should you find yourself in such an unwanted situation, claiming ignorance will hardly serve as an alibi.
We suggest you do your homework if you are planning to hire staff.
This last one is not really a step but it’s an important country specific statistic you should keep an eye out for when preparing to launch. In fact we suggest this be done during the market research phase.
Read consumer spending reports
These reports give you solid facts and statistics about the market, buyers, and demand. They will tell you how much the consumers in your targeted area are willing to spend on local businesses.
These reports depict the level of confidence consumers have in their country’s economy and how much they are willing to invest in it.
The Consumer Confidence Index is a monthly report and other consumer spending reports come out on a quarterly and yearly basis.
Since you will be stepping in to the world of business, the government’s involvement in the enterprise, your rights, the consumer’s rights, your employee’s rights, and the general business environment should all be topics of interest to you.
In the next section, we will discuss the importance of technology and the right technical environment for a business in 2019. If that is something you are interested in, keep reading!
Not everyone is interested in keeping up to date with government policy on new businesses and what goes into launching …