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I am a Tiler. What business structure should I choose?

Are you looking to start or expand your tiling business? If so, it is important that you take great care in deciding which business structure is most suited to your goals and ambitions.

The business structure you end up choosing will have a lasting effect on the business’ running cost, your ability to maintain your competitive edge, and any plans to expand. We understand that choosing the correct business structure can be a delicate balancing act between cost and simplicity, risk and reward.

Unfortunately, there is no formula when it comes to deciding which business structure is right for your tiling business, as it will depend entirely on you, the owner. It is best to have a thorough understanding of the range of business structures available to you and to make a decision that is best in sync with your plans.

Starting your own business

Starting your own tiling business can be an exciting and daunting task. A common business structure to operate your tiling business is a sole trader. This allows you to have complete control over financing and structuring your business.

Another alternative you may want to consider if you are looking to start your own tiling business is a franchise business structure. This would allow you to take advantage of an existing franchise name, an established brand, their marketing resources and skills, not to mention the opportunity to buy products from the franchise’s suppliers at a lower price. Purchasing a franchise is a big commitment, and we cannot overstate the importance of taking time and great care in assessing whether buying a franchise is what is best for you and your business.

If you do buy a franchise, you will be subject to certain conditions imposed by the owners of the franchise. Usually, the franchisor will let you know what these are in an Operations Manual. A franchise business structure is not for everyone, and it is helpful to have someone step you through the other available options.

Expanding your already existing business

A franchise business structure may also be an option if you are looking to expand your already existing tiling business. Franchising allows for expansion at a relatively low cost by giving some control of your business to the franchisees.

As the franchisor, you will focus on attracting business owners to sign up and use your business name, your products and your brand. In this way, a franchise is very different to a company structure. As a franchisor, you would receive a percentage of your franchisee’s profits, so it is in your commercial interests to support them where possible. You may be expected to cover marketing and other expenses for new franchisees, and to assist them to secure a location for their business. These considerations may affect the business structure through which you expand your tiling business.

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Conclusion

A franchise is, however, only one example you may choose to consider to grow your tiling business. Each business structure will have its strengths and weaknesses, and each attracts different legal obligations. You can better understand the different structures available to you by reading this infographic. We also encourage clients to speak with their accountant to determine which business structure will best suit their financial circumstances.

If you have any further questions or require assistance in creating your chosen business, please get in touch! Our experienced business lawyers would be delighted to step you through this process and help you grow your tiling business.

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Adi Snir

Adi Snir

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