Now that you have found your pool and drawn up a credible business plan you can turn your head to other sides of the business, and what you may have to address in the future. One of the big decisions about starting any business is whether or not you trade as a sole trader or you limit your liabilities and form a limited company. There are benefits to both types of operation, if you are solely going to work by yourself with no employees and are certain your business plan does not put you at any financial risk, then staying a sole trader is probably better.
This also means you will not have to complete tax returns to company’s house and there is no corporation tax. But this does not mean you do not have to keep proper accounts. Being a sole trader does mean you have no limited liability. So, if things do go horribly wrong you stand to lose everything you have put down as collateral.
The advantages and disadvantages of forming a limited company are many on both sides. If your swimming business collapses you stand to lose only the share capital you initially invested, normally this is a nominal sum. But there are certain legal criteria you must comply with, such as you must be registered, submit annual accounts and your business is subject to Corporation Tax. For all this you will have to pay a chartered accountant for his services. Whereas as a sole trader probably only needs a simple book keeper.
How you decide between the two alternatives rather depends on your circumstances. If your outlay and income is relatively small and any risk is minimal then the sole trader route is probably best. But if you were fortunate finding a large pool, and have hired extra help to run the business then it would probably make more sense to form a limited company. Forming a limited company is not a hard thing to do, many firms are on the internet that will offer to do this for you for a relatively small fee. What is needed is a director, which will be you, and a company secretary which usually is your accountant.
Health & Safety
The one factor that you cannot ignore in forming your own business as a swimming instructor is that of health and safety. Firstly you, and any other employees, must have the correct qualifications and documentation to teach swimming. You also have a duty of care to any students and spectators who come to your classes. You will be required to take out a risk assessment of your business and its activities. Once this has been done and any hazards are identified, then you must take action to minimize that risk as it is reasonably practicable to do. This will include an emergency action plan at the pool. This business side of things all sounds a little daunting, but they are issues that need facing and will minimize any risk or liabilities at a later date. Once you have addressed all these factors then you can go ahead and enjoy your new life.