Are you looking to start your own electrician business, or expand your already existing electrician business? If so, you should begin to consider which business structure is best for you. Choosing a business structure can be a quagmire for the uninitiated, which exceptionally elaborate explanations of relatively simple concepts. In order for you to make an informed decision about which business structure is best for your business, you should first endeavour to have a basic grasp on the positive and negative aspects of each business structure for your business. Then you should whittle the list down to the ones that appear most suited to you, and learn about them in detail. Finally, it is advisable that upon deciding on the business structure for you, you seek legal advice in order to ensure that you are aware of all the legal implications of your choice.
Should I choose a Franchise business structure?
If you are looking to start your own electrician business, you could consider a franchise business structure. This structure will allow you to adopt the name of an already established business, with an established reputation, thereby allowing you to instantly attract customers loyal to that franchise. This method is recommended for a business owner who is a great electrician, but may not feel confident that they can run and grow a business on their own.
There are two main benefits associated with entering into a franchise business structure, these are money and reputation. Entering into a franchise will mean that you can avoid a substantial amount of the costs related to setting up a business, whether that be obtaining a business name, creating a company or creating signage. In addition, the franchise will have already invested money in advertising and marketing, saving you a great deal of time and money. Finally, a franchise will often allow you to purchase material at a cheaper price than would otherwise be possible, due to that fact that they probably bulk-buy the majority of their products.
Despite all these positive factors it should be noted that there are a number of disadvantages related to choosing a franchise business structure for your electrician business. The most obvious one is that the business will not truly be yours, as you will forever be using a name which is the property of a company. For some people this is a deal breaker, for others they are not so worried by this fact, it is a personal decision that only you can make. On the business from however, members of a franchise are often beholden to the business decisions of the overarching company. This could mean that you could have certain obligation placed upon you at different times during your tenure as a franchisee. Finally, your reputation will never truly be your own, as you will feel the impact of any negative feedback from other stores.
Throughout your tenure as a franchisee, all of these could happen or none of these could happen, the best way to ensure that your business is protected from these disadvantages is by doing your research. Find out how the company in charge of the franchise is run, look at its financial state, research who is in charge and find out what its future goals are. If you like all of these factors, then a franchise could well be the business structure for you.
Do I need legal advice when choosing a business structure?
Although legal advice is not essential in this instance, it is certainly advisable. There are a multitude of business structures from which you can choose, a list of which can be found here. Consequently, without prior legal experience, it is very difficult to be aware of all the legal implications associated with choosing a certain business structure. This being said, it is important that before seeking legal advice, you have a sound knowledge of the basics of each business structure available to you. This will allow you to make the best possible decision for your circumstances, and leave you confident in the knowledge that you have made the right choice.
If you are looking to start your own electrician business or expand your already existing electrician business, you should begin to consider which business structure is best for you. Choosing a business structure can be a daunting task for any business owner. However, with a sound bas knowledge and advice from a legal professional, you will soon be on your way to creating or expanding your business in the way that you want to. A franchise business structure is an example of how a business structure can give you a great head start over the competition if you are willing to make some sacrifices. If you have any further questions relating to which business structure you should choose, feel free to call LegalVision for a fixed-fee quote.