When should you turn your blog into a business?
This is a collaborative post by Joseph Peake.
Turning your blog into a business is an attractive prospect for any blogger. After all, who doesn’t want to make money from their endeavours?
But when is the right time to think about turning your blog into a business? And how would you even go about it?
We’ll explore this a little further in the following post.
Am I ready to turn my blog into a business?
The shift to becoming a business is just as much about changing your mindset as it is the formal documentation that sits behind it.
If your blog is starting to become profitable as a hobby, then you will want to consider turning it into a business in order to declare any extra income you are making. But believe it or not, your blog doesn’t need to be making you money to be turned into a business.
However you will need to start keeping your accounts in check, even if you are operating at a loss, to ensure you keep the tax man happy. So the first question you really need to ask yourself is, are you ready to operate as a business? And are you prepared to take on the responsibility that it will inevitably entail?
How do I register my blog as a business?
If you decide that registering your blog as a business is the right thing for you, then there are a few options available to you.
You can either set yourself up as a sole trader or register your blog as a limited company. Each of these options has its own set of benefits and drawbacks.
In essence, a sole trader declares you as the single owner of the business and is the simplest business structure out there. A limited company is a type of business that has its own legal identity, separate from that of its owners. If you decide to register as a sole trader, you can do this very easily through the GOV.UK website.
If you decide to register your blog as a limited company you will need to register with companies house. Once you have registered you will receive a confirmation statement from Companies House to verify your company’s data. When this has been confirmed, your information will be displayed on the public register. You’ll have to submit a confirmation statement on an annual basis.
For more information about your company statement and how it differs from an annual return check out YourCompanyFormations handy guide.
How do I ensure my blogging business is successful?
Although you can register your blog as a business even if it still makes a loss, no one wants to be losing money.
Carefully consider the following areas to ensure your blogging business grows and is profitable. See if you can make any improvements to them:
- Do you have a clear brand?
- Do you know your target market?
- Does your content provide value?
- What is your USP (Unique selling point)?
- Is your blog designed in a way that makes it attractive to your readers?
If you need more help with how to set up a blog, then take a look at some of my other posts to get you started.