Why so many people are starting their own business during lockdown, and how Vantage can help

Why so many people are starting their own business during lockdown, and how Vantage can help

By Published On: 26 April 2021Categories: News

The pandemic and the ensuing lockdown in the UK has brought periods of unrest, uncertainty and for many, a change in their usual working patterns. But for some crafty and determined individuals, it’s been the push they’ve needed to get their own business up and running, and start to sell online.

In this blog we look at why now could be the perfect time to start your online business, why you’re not alone, and the professional help that’s out there to help you get yourself going.

Things are looking up!

Many individuals used the 2020 lockdown to identify and fill gaps in the current market, where any competition has clearly weakened.

And the figures speak for themselves! The Office for National Statistics (ONS) has revealed that in 2020 a record number of 468,371 new businesses were registered with Companies House, with the top five most popular industries being retail, management consultancy,  freight and logistics, property development and IT consultancy. Retail alone accounted for 22,011 new business start-ups.

A survey by Enterprise Nation in December 2020, asked people to determine their career intentions for 2021 and beyond, and it revealed that 18% were definitely starting their own business this year, and 29% were planning to do so. Of that 29% who are planning on starting up, 39% were aged between 18 and 24, and 32% aged 25 to 34.

The ecommerce opportunities are better now than ever

Due to the pandemic and the closing of the UK’s highstreets, ecommerce sales now account for 30% of all retail sales in the UK, and it was predicted that £141.33 billion was spent online in 2020 alone. It’s also anticipated that online sales will hit £148.89 billion by 2024, due to new consumer spending habits that were formed during lockdown. So the forecast for ecommerce is a bright and progressive one, with no signs of slowing down.

Being online also removes the need for selling from a permanent residence, which in turn eliminates some of the risk from starting a new business, especially during such a turbulent time. A website is much easier to set up and close down, and could be the perfect choice for you if you’re thinking about it but not quite ready to commit to bricks and mortar.

What do you need to consider before starting out?

Before putting your sales channel live, you’ll need to consider how you’ll be managing your cash flow, your tax payments and accounts which all come with running a business, regardless of your selling platform. Also as you’ll now be self-employed, you’ll be subject to a set of tax rules and regulations you’ll have to adhere to, along with a whole new language and way of thinking.

If you’re planning on selling through Amazon will you be private labelling, carrying out Retail Arbitrage, or will your new business own its own Amazon Web Store? Will you be PowerSelling on eBay, drop shipping, or perhaps using eBay as an additional sales channel? Your decisions on these questions will have consequences on how your transactions are accounted for and therefore taxed, which will be influenced by these and a number of other factors.

Help is at hand

Whilst all this may seem confusing and have room for human error, especially when it comes to dealing with tax, it’s good to know that there are specialist accountants out there who deal with the exact needs of ecommerce sellers, and are able to help and advise you based on your own personal and professional circumstances. They do the heavy lifting when it comes to the numbers to make sure you remain compliant in the eyes of the taxman, whilst ensuring you take home as much of your hard earnt cash as possible. Leaving you free to focus on your business.

How Vantage Accounting can help

For all your ecommerce accounting needs, look no further than Vantage! We are experts in ecommerce accounting, and have many years’ experience with global platforms such as Etsy, eBay, Amazon, Shopify and many more. We understand in detail how their business models work, and are able to advise you on how to grow your ecommerce business through smart accounting and advice.

We will help to get you set up, advise you on which trading model best suits your needs and professional goals, and how to manage your cash flow correctly and effectively.

We’ll also ensure all the legal bits are under control so that you’re in the clear with taxman, whilst taking home as much of your money as possible.

So what are you waiting for! Your dream of becoming an ecommerce business owner is just around the corner, and we’re here ready to help you along the way. Take a look for more information on the services we offer our ecommerce clients, or if you’re ready to speak to our team directly get in touch today.

Note: All the information and advice in this blog post was correct at the time of writing.

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