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Sharing economy is becoming a worldwide trend nowadays and has a ton of doubtless advantages that let customers and businessmen interact with each other smartly. Unfortunately, as a part of this overwhelming tendency arise some sketchy solutions that look extremely attractive for many.
Just imagine that you aim to start and run your own company. But such time-consuming and challenging issues as banking, accounting, invoicing grave doubts about setting up a company. A dubious solution offers you an attractive deal — renting a ready-made company without some boring back-office processes. The best solution any entrepreneur could ever have! But don't get yourself tricked. In this article, we'll talk about the probable cons of cooperating with these business service providers and explain why it's always better to raise your own brainchild.
Purchasing an Open Company
Some of our customers wonder about these tempting solutions that might get them rid of all the boring and distracting stuff and let them focus on what matters most. But let's have a close-up view of these mysterious offers.
Companies we are talking about usually offer non-existing ready-made businesses with staff, customers, and tooled business processes. They give you just a limited amount of features for a constant invoicing commission or a monthly subscription. This means you get a registered legal entity but don't really own it. A provider leads all your financial and legal operations with authorities, users, and particularly covers your transactions while you are supposed to focus on the business processes and interactions with customers.
Sore Points of Using a Ready-to-Use Company
There are a lot of probable weaknesses and challenges working with this type of service. Obviously, these solutions give you no full control over a company (we're not even talking about your company) because you are not a legitimate business owner. This kind of company is just a legal facade for some business processes and financial flows, mostly leading by the mediator — a rental company provider.
Another probable issue may be serious risks from both sides — clients and a provider. You're not immune to shady schemes or even fraud from the side of the service provider. You're also not protected from the loss of the invoices that will cost you the prestige of the company and customers' trust. Are you totally sure that all of your bills and invoices are secure being covered by the provider?
Also, service providers give you no full access to the company's corporate bank account. Here we are talking about your money that you have no control over while renting a ready-to-use company. Just imagine that some sketchy mediator has full access to all of your money and personal data. And even if you trust the service provider, are you actually OK with the awareness that someone else has a key to your resources? The additional weakness is that a ready-to-use solution gives you no choice to choose the name of the company — be content with offered options.
Alongside with that, you'll have to take full responsibility for the initial audit of the offered solutions, rebuild existing business processes, and take care of proper cooperation with the mediator. Let us ask you a question: do all complexities and risks mentioned above relate to your business purposes and desired objectives? Are you actually ready to take these risks for dubious advantages like better cost of the initial performance of the company? If these answers are yes, good luck and stay vigilant.
Let's sum up, using these schemes, you gain no established customers, solidary staff, proven business idea, supply chain, or great reputation. All you have is a backhanded scheme of business management with a bunch of potential hidden problems.
Starting your own business has been an unapproachable desire for many during the centuries. Fortunately, now we live in the era of rapid economic development, while almost everyone has a clear opportunity to start and run a business from scratch. Obviously enough, starting your own business is a highly risky activity. But in case of its success, you and your partners gain real benefits of the company's evolution — security of the resources (like your shares), levers of influence, total financial control, and so much more.
All of the above is impossible if you choose to rent a company instead of owning one. For the easy life on the initial stage, you sacrifice your full control over your data, money, and future prospects. Just think that with the company's rapid growth you'll have to build up a corporate culture, management chain, and global financial network. How are you going to make it without full control over a company? Also, note that there is no worldwide successful company started as a rented one — another evidence.
We advise using company renting services only for those who are confident in all benefits and objectives of this action. But they barely ask our opinion — they've most likely rented a ready-to-use solution. These types of companies are not for ambitious leaders and global expansion, only for fast and easy profit-making and financial operation without big aims. 99% of the entrepreneurs would rather start their own business from scratch and own their company without any limitations.
How Enty Can Assist You
So, there are different dubious solutions that might sound extremely attractive for many of us. But it's always important to plan several steps forward and not to run for the first offer you can't refuse.
Enty can easily incorporate a company, automate your company's accounting, lead your legal issues and invoicing — all in one place. Manage your business by yourself from a single interface without any interference, mediators, or third parties.
Don't buy a pig in a poke — build your own company and run it as you find suitable.