Froodee

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Why incorporate?

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You’ve been successfully running a small business for quite some time, and you’re doing it as a sole proprietorship or a partnership. Well, good for you—you’re one of the entrepreneurs who make our economy grow strong (a great majority of economic growth comes from the small and medium business sector). But do give a thought about incorporating.

Why incorporate? Well, why not?

For one thing, incorporating will create a new legal entity, and can protect you from whatever liability you may have as an individual. You also get some tax perks, which will generally improve the business’ cashflow.

It’s not usually difficult to incorporate. It only takes but a few hours to at least a day. In the end, the small amount of time and effort (and money, of course) you will have to spend on incorporating will be well worth it. It makes good business sense, after all, to think of the long term and the bigger picture.

Insolvencies expected to peak in ‘06

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According to new research by BDO Stoy Hayward , it is expecting that 18,052 businesses will fold next year. This is 749 more than the figures posted in 2005. But the forecasted economic growth for the next two years will mean that the number of corporate failures will drop to 17,528 in 2007.

A total number of 17,303 firms have folded this year with shop owners taking the biggest hit. About 1245 retailers have folded business, which is up from 960 in 2004. This increase is not surprising because of the lowered consumer confidence stores had to contend with this year.

But with houses price and interest rate stability in the 1Q of 2006 set to boost consumer confidence, the report predicted better news for the sector.

Company formation and business solutions experts are hoping that the expected drop in corporate failures will come true in order to entice more people to start their businesses.

Business cards subject of new research

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According to research done by Prof. Cary Cooper of Lancaster University Management School and commissioned by the Entwistle Group, most business owners choose bad designs that pay no attention to who they are trying to impress.

Cooper said that business cards should be “the central part of a company’s marketing material.

The Entwistle Group suggests that business owners should design their business cards with a specific set of potential clients in mind.

Company formation and business solutions experts say that this is quite a new insight into the subject of business cards. They advice that this kind of research won’t hurt businesses and business owners could opt to try these new innovative ideas to enhance their business.

DTI research debunks myths about small business (Part 2)

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In a previous blog entry the newly released research of the Department of Trade and Industry on business myths was discussed. The research, entitled Myths Surrounding Starting and Running a Business, debunked a number of myths about starting and operating a small business. Here are some more myths that the research debunked:

* MYTH: It would take years to start a business from the ground.
* FACT: Most businesses are usually formed within six months.

* MYTH: The rejection for business loan applications is so much higher than it is.
* FACT: Only 10 to 20 per cent of applications are actually rejected.

* MYTH: It is hard to make a living from a start-up.
* FACT: People’s income estimate in their first year of trading is just half of the figure that is really achieved by small businesses.

UK vacancies dominated by service-oriented jobs

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Based on a new Jobcentre Plus survey of 4500 employees, almost 43 per cent of the 3.4 million job openings last year went to service jobs like bar staff, unskilled labourers and packers. There were also significant openings in the sales and customer services occupations.

It was also reported that a quarter of all employers hired or attempted to hire staff last year. Small companies accounted for half of the employers who are trying to recruit new staff.

It also looks like that entrepreneurs who have started their own business and operating it are looking for motivation and flexibility in their employees, followed by verbal communications. Interestingly, regardless of the experience of the applicant or the type of occupation being filled, the same wished for skills come up.