New Business Help

[Over The Hill]

I think there are three types of small business-
1. You provide your service to one client. Basically like being employed but with less commitment.
2. You provide a service for a few ongoing clients. You need to keep them happy but if you do then you do not need to look for more.
3. Your clients are ever changing, in that you do x for them or sell them x and then they dont need you. They may come back again when they next need x but meanwhile you need more clients.

1 and 2 are good when you are in there but usually you have to unseat their present supplier.
3. Relies on the consumer choosing you each time over any other supplier. They need to know you are there and the service/product needs to be something they will shop around for.

1 and 2 you target but 3 needs a broadcast.

Assuming you have the necessary skill and ability, are you someone who can sell yourself?

Key is to look at the customers position and why they would or would not use you instead of others.

Once you have the thing working in theory then you can get to the figures. Look at the period between the last pay cheque and when you expect to be paid for your services.

Lastly - when will they expect to be able to get hold of you?
Generally it is a 24/7 world out there and we expect to be able to go shopping at 9pm or phone up a call centre anytime. I got out of retailing when the opening times got silly for shop staff. Keep in mind your customers expectations.

 

[Spinney]

So you are going to be a consultant?

Don't forget to register with HMRC as self-employed!

 

[swee'pea99]

Haven't used this lot, but they run lots of events for people in your situation, including local ones - might be worth checking out? (It's all free.)

 

[amasidlover]

I'm going to sound a note of caution here... I started my own business about 5 years ago doing software development and RF consultancy, I now employ 5 other people and we all make a decent living - however... service businesses are, generally speaking, not going to make you a fortune until they get really big - which means employing people; and if you think worrying about which client your next pay cheque is going to come from is going to be an issue, that's nothing compared to also having to worry about where your employees' pay is going to come from (unless of course you don't mind making people redundant at the drop of a hat... And I do mind.)

So, my advice would be, if you want to get rich(er), negotiate with your employer about a bigger cut/bonus/share scheme. But, if you want freedom to set your working practices then consider starting your own business.

If you've already made the decision to start a business then I'm going to suggest a slightly different tack to the others; an accountant is fine and a good one is well worth having, but what really makes running a business easier is being able to call someone up whenever you need, who's been there and done it (ideally, successfully but with some trials on the way!). I've been very lucky and had this kind of support in exchange for a stake in my company.

Finally, www.businesslink.gov.uk - unbelievably useful, not just the web site, but the local advisers too.

Alex

P.S. If you can, then take a proper holiday before you leave, it may be the last uninterrupted holiday you get for some time.

P.P.S. Good luck!

 

[Wigsie]

I'm going to sound a note of caution here... I started my own business about 5 years ago doing software development and RF consultancy, I now employ 5 other people and we all make a decent living - however... service businesses are, generally speaking, not going to make you a fortune until they get really big - which means employing people; and if you think worrying about which client your next pay cheque is going to come from is going to be an issue, that's nothing compared to also having to worry about where your employees' pay is going to come from (unless of course you don't mind making people redundant at the drop of a hat... And I do mind.)

So, my advice would be, if you want to get rich(er), negotiate with your employer about a bigger cut/bonus/share scheme. But, if you want freedom to set your working practices then consider starting your own business.

If you've already made the decision to start a business then I'm going to suggest a slightly different tack to the others; an accountant is fine and a good one is well worth having, but what really makes running a business easier is being able to call someone up whenever you need, who's been there and done it (ideally, successfully but with some trials on the way!). I've been very lucky and had this kind of support in exchange for a stake in my company.

Finally, www.businesslink.gov.uk - unbelievably useful, not just the web site, but the local advisers too.

Alex

P.S. If you can, then take a proper holiday before you leave, it may be the last uninterrupted holiday you get for some time.

P.P.S. Good luck!

Thanks for all the advice Alex, It's not (all) about getting filthy rich, more a lifestyle choice.

I have spoken with the guy who I first started working for and he has given me loads of advice, as he is in the states now, he has been helping me base my business model on a growing set up, which should filter here over the next few years.

He has offered to invest for a slice of the pie, but I kind of want to do it all for myself (for the time being).

Thanks everyone! Will keep you posted!