Debunking some myths about starting a small business in the UK.
There are a lot of misunderstandings when it comes to starting your own small business. Many myths are the exact reason why people try to stay away, but why don’t we try to go through a few of them and see whether its fact or fiction.
Starting a Small Business Myth 1
I’ve heard that starting a small business will let me write off all of my expenses. The reality of this is that there are many rules governing business expenses. Some things don’t qualify as a business expense at all, and in other cases, the item is a legitimate business expense but you my only have the right to claim a portion of that expense. You can never write off all of your expenses, that’s just ridiculous – if that was true, every business would be nothing but profits.
Starting a Small Business Myth 2
I’ve heard that if I have a really small business, that I don’t have to register it. If you are starting any business in the UK, the first thing you must do is register it. In fact it is not a do or don’t, it’s an actual government requirement that has nothing to do with the size or revenue of the business. That being said, if you choose the sole trader form of business ownership and run your business under your own legal name with no additions, you do not have to register it with your region.
Starting a Small Business Myth 3
I’ve heard that if I’m not selling much, it doesn’t count as a real business. The reason for this myth is so that a business owner won’t have to register a business, charge and remit taxes and perhaps not declare income. The fact is, it doesn’t matter how much you sell and what your revenue is. The British government expects you to follow all of the rules and regulations and declare the income of any transaction of your business.
Starting a Small Business Myth 4
I’ve heard that if I sell things online, I don’t have to charge and remit taxes? If this was true, why isn’t everybody doing it? Everybody would be buying and selling online and not charging or paying taxes. The world would be a better place – but we don’t make the rules. The same rules apply to an online business as they do to a brick-and-mortar business.
Starting a Small Business Myth 5
I’ve heard that there are all kinds of government grants for people who want to start a small business. Don’t be confused here, this is partly a myth and truth at the same time. Government grants/loans and funding is available, but the fact is you have to qualify and be eligible to receive any type of funding. And more often if you are eligible, you will receive a low interest loan rather than free money grant.
A common belief that starting your own business is that it will be incredibly rewarding. This is not a myth, but it is the truth. If you are dedicated and motivated by what you do, there is no reason why it shouldn’t be rewarding. Don’t let the myths of starting a small business put you off; the reality is so much better.