In a flash, 2020 is almost over. We have spent most of the year in some form of isolation. Working from home is becoming more common, social activities have decrease drastically and governments have implemented lockdowns in one form or another almost everywhere in the world.
Some of us have lost our jobs and some have experienced income loss. Governments handed out more aids than any other times in history. Still, it doesn’t last forever.
During the lock downs, with more spare time, many have cultivated new hobbies or honed their existing interests.
So if you have lost income and developed a new skillset, what do you do with it?
Make a new living out of it! Either on the side or full time!
One question we get quite often is, do we need to incorporate a company? That is the main question we will address today! If you conclude that you do need to incorporate a company, you can refer to our articles on how to set up a company
To decide whether you need to incorporate a company or not is dependent on 4 factors:
- Your suppliers
- Your customers
- The scale of your business
- The product and service you are selling
If you are just buying baking goods off the supermarket, baking it at home and selling it online, there isn’t a need to enter into any contractual agreements. If there is any need to enter into any contractual agreements with any parties, you will need to incorporate a company. This point leads to scale. This small operating mode means one is only able to buy in smaller quantities and do direct deliveries to customers in small quantities. One is unable to provide huge quantity of service/products. This model is also limited to direct deliveries and will not be allowed to hawk their products at any establishments (retail, events, fairs, etc).
Last but not least, it is also dependant on the product and service you are selling. If it entails a substantial amount of money, a contract and some form of assurance is most likely required therefore you need a company entity , e.g consulting services. If it is smaller scale and probably can withstand some components of failure, you can probably do without a company entity, eg. tuition services, emcee, home baking.
Whichever case it is, don’t let the crisis pin you down. Turn the crisis into an opportunity. The best start to get something started with something on your own is right now.
Start small, start now.