Unit 1 Task 10 - Types of Business in the UK

 Types of Business in the UK

As discussed back in Task 2, there are a number of different types of business that I could operate my business as. These include:

• Sole Trader
• Limited Company
• Partnership
• Social Enterprise
• Charity
• Unincorporated Association

After having had a look at all the different options for how to run my business, I believe the most suitable option that works for my business would be operating as a Sole Trader. This is because I believe I'll be running the business entirely by myself for the most part, as I can't see much of a need for employees or a huge workforce as a writing commissions business. All I really need is my ability to write and clients, which means operating as a sole trader should be my best option. Whilst this does put quite a bit of responsibility on me for my finances and the potential failure of my business, this feels like the route that makes the most sense for my business (primarily because of me starting the business up by myself).

I don't believe the Social Enterprise or Charity options would work well for my business, as I can't really see a way to operate a writing commissions business as a charity-focused organisation. Making money from writing stories from people's imaginations isn't really a non-monetary goal. However, this doesn't mean I won't be charitable with my business and will still take care regarding the environment and how my business impacts others. This also goes the same for the Unincorporated Association, as they require a non-profit oriented goal as well.

In addition, I don't see a partnership or a limited company working either. The partnership option requires me to have another person to run the business with. I don't have anyone in mind who would share my goal of a writing commissions business, and especially not someone who would allow me to keep up my creative vision without taking a share of the control. Similarly, operating as a limited company means that I would require shareholders, directors and a company secretary according to the UK Government's official website, meaning I would need to put a lot more planning into the logistics behind the company. Operating as a self-employed sole trader would be far simpler for me whilst also giving me far more control over how the business operates without the worry of shareholders and what they desire hanging over me.

Conclusion

To conclude, I'll be operating my business as a self-employed sole trader. This route gives me a lot of control over how the business operates and requires me to do far less planning and working around other people than the other two profit-oriented options would. In addition, due to the goal of my business having a goal related to making profits, my business could not operate as a charity, social enterprise or unincorporated association. Therefore, it makes the most sense for me to operate my business as a sole trader with the rules and regulations that come alongside that.