Here at Midland Business Training, Sean and I, typically deliver business training, mentoring, external supervision, and workplace mediation and facilitations. Our main business training course is our Start Your Own Business Programme, which we deliver in different counties over different time durations.
For example 10 nights is the traditional time span for the night SYOB Programme but in the last few years a more condensed SYOB version is run over 6 Nights with another popular option being Day SYOB's over 4 or even 3 Days. This condensed version comes about from the time constraints of participants living in the whirlwind of 2018, and needing information fast - but oftentimes without the learning unfortunately
I don't think any of us can deny that we live in a digitally obsessed, escape basis society that has changed our ability to concentrate, take in information, have patience, and learn.
The typical feedback from participants on a condensed 3-4 Day SYOB Programme, Is that it is a lot of information in short space of time. This, of course, is true, if you sign up to learn about the basics of running a business in 3 Days you are going to receive a lot of information in that time, however, we felt at Midland Business Training we could assist with this common problem of information overload, by ensuring each participant would have a common sense module notes in their take home folders with templates and working examples that they could refer back to any time in their future - of course this only works if the participant actually does read over the notes !
During our course interactions, we, pay a lot of attention to common questions from participants that come up. These questions usually require a more detailed or example driven response, so I decided I would respond on this blog, and it would be there for all participants past and future - a definite Win-Win.
Did You Know that a recent article posted by Forbes stated that 80% of small businesses fail within the first 18 months
Brian O'Kane and Ron Immink tell us in their Workbook Starting Your Own Business(2010) that
"70% of self -employed people do not prepare properly for their new role and responsibilities" and
"90% do not study their market"
A proper introduction to starting your own business would require some self-awareness work, goal setting, business planning, market research etc before we even start finance and ultimately marketing, HR, Legals, pitching and networking - we complete all these modules on our Start Your Own Business Programmes, however, there are a lot of people that make the 70% mistake of thinking all that is important when starting a business is knowing what to do (and pay) to the Revenue - and they are right this is very important, but not all that is involved but in order to assist, I will publish a number of blogs to cover the main aspects of Revenue and Legal requirements as an overview if you are thinking of starting a business
Let's Begin - Most Common questions from Sole Traders - Tax and what has to be paid
Let us assume you have completed your market research and know that there is a need for your product or service and have some primary and secondary market research to back this up.
Let us next assume that you understand the basics of Legal structures - 3 options Sole Trader, Partnership and Limited Company and all that is involved in setting up each of these - who you are answerable to, legal obligations etc
Sole Trader one individual who owns and operates a business taking all the risks and rewards. The advantages of being a sole trader is that your business can be involved in a number of unrelated activities, for example you could have a Health Shop and also be a Yoga Instructor all under one business return. Answerable only to the Revenue and liable for Self- Assessment Income Tax in October of every year on Form 11
Partnership with another person where both partners work together and split the profits /losses according to their profit sharing ratio. Each partner is personally liable for the losses of the partnership - Even if these result from the activities of another partner. Answerable only to the Revenue and liable for Self- Assessment Income Tax in October of every year on Form 11 individually and a separate Partnership return
Limited Liability Company - A company is a separate legal entity. It is separate and detached from the people who run/manage it ie directors and from shareholders, public etc. Directors have limited liability. Answerable to the Revenue for Corporation Tax also answerable to the Companies Registration Office CRO where accounts are returned annually and these accounts - abridged accounts not full set - are public information and on payment of a fee to the CRO can be viewed from any member of the public