1. It gives you a unique identity (and protects it too)
There is a certain pride that comes with the identity of your own business. It’s no longer that big idea you’ve had in your head all these years. It’s now a real thing that legally exists.
2. It makes you look serious and attracts more customers
In today’s modern world, most customers, especially corporate customers, expect a serious and responsible business to be registered. In certain cases, it’s against the law for regulatory and tax reasons. Nobody says you can’t survive with a business that isn’t registered. The likely outcome is that you may not grow and will probably remain small for a long time.
3. It’s easier to get bank services, investors or Funding
None will give you money to fund a business that isn’t registered. To qualify for a business loan, the Number 1 and non-negotiable requirement is that your business must be registered. For investors, it’s the same thing. Investors are interested in giving you money for a share of your business, and not to finance your personal lifestyle. The same goes for Funding. It can be a sign of unseriousness and a lack of professionalism.
4. Gives you Focus
It makes the business real for you and keeps you focused: Having a formal business will encourage you to dedicate your energy towards it. You can be proud of the fact that you’re a business owner – it’s no longer just an idea or a hobby.
5. It’s important for continuity sake
Nestlé, Cadbury, Shell ,These names are big multi-billion dollar businesses that have existed for decades. Businesses, which were quite small when they started many years ago, remain very big and successful today. It’s called continuity, businesses have the ability to last forever as they are transferred from one generation to another. A registered business is an asset that can be passed down (or sold by its owners to a new generation who can continue to own and run the business.