New Business Help

[Wigsie]

So Since I left Uni 12 years ago I have been working for people that have started their own businesses... now most will know that I am not one to blow my own trumpet much but I am sick of making other people wealthy and want to do it for myself!

Essentially I offer a service so don't have to buy materials or get overdrafts, loans, investment etc, most expense (I think) will be marketing collateral which is not a problem.

The issue is I have only bought the domain name and now am not sure where to start! what type of business should I register it as? do I need an accountant? what exactly do I have to do?

 

[PpPete]

Definitely get an accountant from the off.
I registered a Ltd co. on the web for about £40, but ended up with a small fine in the first few months for not sending in some piece of paper or other. Accountant sorted it, but would have done so before deadline and fine if I'd hired him earlier.
Also - Partnership or Sole Trader status maybe better in your circs than Ltd co., again accountant is probably best person to advise.
Shop around though, find someone you can get along with, and who doesnt charge the earth. Prices vary hugely even amongst similar sized practices in small area.

 

[accountantpete]

See an accountant! See an Accountant!

Seriously you need to consider

1. Limited Company (lower tax bill/higher accountants bills -good if profits are £25k per annum or above) or Self-Employed (dead easy to keep records and less regulation).

2. You must register for Vat if turnover exceeds £70k but if your clients are already vat registered it may be worth registering voluntarily even if your turnover is less than this as you can claim back the input VAT.

3.If you go self-employed you need to register with HMRC within 3 months of starting.

 

[Aperitif]

You need accountantpete to deal with the serious stuff on the periphery, and MacB to deal with the peripheral stuff seriously.
You'll be driving a three-wheeler ere long!
Good luck Wigsie.

 

[Wigsie]

You need accountantpete to deal with the serious stuff on the periphery, and MacB to deal with the peripheral stuff seriously.
You'll be driving a three-wheeler ere long!
Good luck Wigsie.

Seriously, MacB?

Did you have a fall on that flash new ride of yours while perving at observing dirty women playing in the mud?

 

[Wigsie]

See an accountant! See an Accountant!

So an accountant is the next step?

How much should I put aside for this? approx? £100? £500? + registration fee's etc?

 

[thomas]

The issue is I have only bought the domain name and now am not sure where to start! what type of business should I register it as? do I need an accountant? what exactly do I have to do?

I'd say get one. You're not in the business of doing your books, vat returns, etc....you offer a different service and will hopefully be making enough money from that it's cheaper to have an accountant

I do a bit of freelance work and do reasonably well from adverts on some websites I own and run. I just do that all as a sole trader as there wouldn't be a whole lot of benefit in becoming limited. If say, at the end of UNI (or a few years after) I decide to turn that into a more full time gig then I would consider it, not only would it give me better legal protection but it would all seem a bit more proper : )

Anyway...get writing your strategic marketing plan!!! I'm busy writing one for a new nightclub in Norwich that I'm imaginary going to be launching soon (my marketing module coursework is great - so far)....it's quite good fun!

 

[Aperitif]

He's my numbers man when I need to hold a raffle, mid-ride. He's 100%.
(You'll not see many raffles mentioned on other's rides...he's a specialist)

 

[accountantpete]

Ask around as to a good local accountant - they wont charge (or shouldn't) for an initial consultation.

 

[Night Train]

Also, depending on the sort of service you are delivering, you may want to look at getting some public liability and/or professional indemnity insurance.

 

[bikepete]

Have been running my own business for almost 10 years now. Would agree that an accountant is a must have - in the early penny pinching days I did look at doing it myself but really it just didn't seem worth it - I had enough to get my head around and concentrate on (i.e. running the business itself) without spending hours working out which bit of paper needed submitting when, the meaning of obscure tax jargon etc. As it is I just supply my bookkeeping data to them every year on CD along with payroll stuff etc and they do all the calcs, make sure everything gets sent on time, tell me how much tax to pay and when, etc. They also do my personal income tax statements etc.

Using a proper Chartered Accountant also seems to give you brownie points when talking to banks, Inland Revenue etc.

This is for a Ltd company... mine costs me about £1000 a year - would probably be less for a start-up.

 

[Greedo]

Good on you mate for making the leap to self employment.

I would get a good accountant as mentioned above. I would also make sure you get a recommendation as if they are good it will be worth it in the long run. Also as mentioned I'd make sure they are Chartered. Don't just pick one out the yellow pages.

If you are going to be trading and turning over more than what was £54k but believe higher now you need to be VAT registered.

Limited company also gives you a lot more protection if anything happens and your house etc... will be protected. If you're just a sole trader you are responsible for any debts the business has although you mentioned you don't have many out lays.

You mentioned marketing and advertising etc is going to be your main outlay.

Correct me if I'm wrong but I seem to recall you are in website design????

Save yourself a fortune in the early days and get yourself really good business cards as you are that type of business (nothing too fussy and over the top though), brochure about your services to leave with potential customers and a really good powerpoint presentation and a pitch you are very comfortable delivering.

I'd then join your local BNI, Chamber of commerce, networking events etc... You'll pick up loads of business this way. I'd then go through every business in your local area and check out their websites and find the ones you can make better and then start cold calling face to face IE Door chapping. "I was in the area at a meeting and just thought I'd pop in etc"..... works far better than phoning. Even if the person you need to talk to isn't there you'll get loads more information about the company. You'll get the decision makers name for a start that won't always be given out over the phone and getting chatting to a receptionist can reap major info to help when you call back. She'll remember you and more likely to put you through.

Don't waste any money posting brochures and expensive marketing info to companies and sit back and wait for the phone to ring. It will just go straight in the bin. and the phone will never ring.

Now the harsh reality.

If you are the type of person who finds it difficult talking to people, not confident in selling yourself and services, confident negotiating, hard working and willing to chap doors, pick up the phone, go to networking events in evenings and work hard then my advice would be to forget it as you'll fail.

The only reason I'm saying this is i've known loads of people who have set up on their own and failed as they were not prepared to sell, sell, sell and if anybody setting up a business doesn't realise that then they can forget about it.

Good luck mate and I'm sure you'll make a success of it

 

[Over The Hill]

Accountants are good if you make yourself some money, they will help you pay less of it to HMRC.
BUT you have to have the business there in the first place. That bit is down to you: how it is set up and run. The sole trader/ ltd co bit is just a label that is stuck on the thing.
Assuming whatever you do is what you are doing for your present employer, how do you attract customers to your door and not his or anyone elses?
Do you have a skill or knowlege that is in limited supply?
If the setup is easy then why isnt every unemployed person doing this?
Will the business rely on the present network of contacts you have (are you relying on stealing your present clients?) or are you confident that you can drum up business in these present hard times?

 

[ASC1951]

Assuming whatever you do is what you are doing for your present employer, how do you attract customers to your door and not his or anyone elses?

If the setup is easy then why isnt every unemployed person doing this?

Bingo! I have set up several businesses from scratch and either you need to do something new or at least new to your area, or you need to do what someone else is doing and do it just that little bit better.

One of the effects of the free market is that businesses generally expand to fill the opportunities available, so the only way you will be able to get going will be to work much harder for each customer than you do at the moment. If you aren't prepared to do that, stay where you are.

My two suggestions would be:-
- plan as much as you can before you actually hand in your notice.
- concentrate on profitability above all else. Market share, turnover, and to a degree cashflow are all irrelevant.

I would also come clean with your employers when you do leave. Pillaging their customer database is immoral and is a breach of contract even if doesn't specifically say so, so you could be sued for any profit you make from those customers. Far better to leave on good terms and you may find that they still send you work which is too small for them - that has worked for me.

What sort of business is it, anyway, Wigsie?

 

[Wigsie]

What sort of business is it, anyway, Wigsie?

Aaaaah! that would be telling,

Actually the business is me.... the last few companies I have worked for have made great amounts of money selling me, my expertise and knowledge in the particular fields I operate. The amount of interest we get from people that just can't afford the extortionate rates my employers charge is insane, so the plan is to cut overheads and go at it alone, primarily focussing on those that have limited budgets in these harsh times.

I am busy on a business plan and am pretty confident the model is there to work