Is unemployment worrying you? Are you broken down because of being fired? Self-employment is the correct way to turn the table around and make money and you can become the decision-maker of your work. Figure out from the available types of businesses and choose the right one that suits your idea.
Sole proprietor is also known as an entrepreneur. If you want to operate a business on your own and take all the profits you make, then this can be the right option.
Even though the word entrepreneur infers that you will organize the business solely, it doesn’t mean you cannot hire people, instead you are alone are responsible for the ups and down of your business.
When the ownership, investment for the start-up of the business is shared by two or more people it is called partnership and the members are called partners. They are all liable for any deprivations made by the company.
The profits are shared by the partners and each partner pays the tax and National Insurance on their share of profit. The company must choose a nominated partner to take responsibility for the book keeping and tax returns.
Legally, this form of business separates the organisation and the person or people running it. Any profits made are owned by the company after it pays Corporation Tax, and the company can share its profits.
The organisation has members who own a share of the company. These shares can be sold to friends and family members. A member of a limited company is only responsible for up to the value of their investment in the business. This means that if the business runs up a lot of debt, the members aren’t liable to pay the sum of the debt, just for their share of the investment.
A franchisee will buy a license from an existing business which often means that you can use the existing business’ brand, image and business model. The franchiser gets an initial (and then ongoing) fee for the franchise to use its product or service.
The business is owned and operated by the franchisee but the franchiser has control over the marketing and way that the product or service is sold. Examples of current franchises include: McDonalds, Subway, some letting agents, automotive services and many more.
Businesses owned and run by people with the same ethos and goals.
Businesses that help people, communities or charity-based organisations. Choosing this option you could run as a Community Interest Company, which is a limited company that has a community interest statement and an asset lock which is a legal promise to use the company assets for its social objectives and only give so much money to its shareholders.
Universities have started to place more emphasis on educating students about social enterprises and cooperatives.
Freelance or consultancy
You may wish to work as a freelancer or on a consultancy basis if you have skills, knowledge or a service which can be hired by companies. Commonly, this involves working from home or travelling to the different companies that hire you.