With a viable business idea, the next step is to put in place the resources required for actual starting and running. the side hustle. Below are some items that one can make decisions on in the business start-up process.
- Business Name
- Legal Structure
- Business Registration
- Business Location
- Lease of Premises
- Renovation of Premises
- Business Legal Requirements
- Business Operation Assets
- Business Operation Systems
- Employment of Staff
- Side Hustle Launch
Beginning with the sub-topics of business name, legal structure and business registration, I shall be sharing each of the others daily to Friday for the next two weeks. Be on the lookout for content on the sub-topics on my Facebook wall.
BUSINESS NAME
Businesses, like people, are given and identified by their name. In choosing the name of one’s side hustle, aim at its brevity and association to its kind of business. Brainstorm for a number of names and check with other people on their suitability for the business in mind.
People sometimes combine a few letters from their full name to create a business name. For example, Taos Cafe may be coined from the first two letters of the name Taracha Osano. Others use the location of the business in its name. Kiserian Bakery would be a business name because it would be operated in Kiserian. Whichever the final name that one chooses, let it short and related to the nature of its business.
LEGAL STRUCTURE
A side hustle will require a legal structure of ownership which may be any one of the following:
- Sole proprietorship
- Partnership
- Limited company
Sole Proprietorship
A sole proprietorship is a business owned by one person. He or she is/has control over its operations. As owner-manager, he or she makes all business decisions for its effective running.
The business person shalk owns all the business assets and becomes liable for its debts. In case of business failure, his or her personal assets can be sold to settle debts owed to creditors.
The sole proprietorship is the advisable legal structure to use when venturing into business for the first time.
Partnership
A partnership is a business owned by two or more people. The partners prepare a Partnership Deed (Agreement) to govern the control and operations of the business. In the case of business failure, the partners become individually liable for their liabilities.
For beginning a side hustle, this form of business ownership is not recommended because of the potential for misunderstandings between or among partners. Before the partnership, people may be friends only to fall out due to challenges of running a business together.
Limited Company
A limited company can be owned by one or more people who incorporate it by lodging a Memo and Articles of Association with the Registrar of Companies. The company will be a separate entity from the people who will own shares in it. The shareholders’ liabilities will be limited to the nominal value of the shares each owns. In case of bankruptcy, the assets of individual shareholders will not be sold to settle the liabilities of the company.
For a first-timer in business, forming a company may be unrealistic considering its legal requirements that cost much money.
Business Registration
Nowadays business name registration can be done online through e-Citizen. Once you log in with your e-Citizen number, follow the instructions given including making the required payment fee.
It is advisable to have at least three business names so that if one is already in registered, any remaining ones can be used. After meeting all the business registration requirements, one can print a Certificate of Business Name. This certificate should be taken for verification at the chosen Huduma Centre.
Tomorrow, Tuesday, I will be sharing information on business location for your side hustle.
Samson Osero
