How do you start a business?
Discussion
Can any of you great people give me some free and helpful advice please?
About a year ago, a friend and myself bought a load of vinyl cutting machines and materials, and set about doing a few graphics for our own cars, (i have experience doing this work)this led to numberplates and soon we were getting requests for the odd job here and there.
We then did a car, a lorry and a shop and have now completed a good number of jobs, all with perfect satisfaction for the customer.
We would now like to try and make a living from this, and to set up as a complete business with a unit and professional attitude.
A nice size unit has come available to us for £127 per week with rates and electric etc.
THE SCARY BIT
how do i ensure we have sufficient work and customers to
a. cover our costs
b. provide some form of wage
while i know we wont be a huge salary from the start, if we can make enough to do for now, that will be fine, its just a worry about taking a 12 month lease and not being able to meet that cost.
could we get a grant or help as a new venture?
how did you start of and what would you advice please?
while we have a nice flow of work now, it would not cover the cost of the unit right now, but i cant work it from my home and expect to do a good job or look professional
About a year ago, a friend and myself bought a load of vinyl cutting machines and materials, and set about doing a few graphics for our own cars, (i have experience doing this work)this led to numberplates and soon we were getting requests for the odd job here and there.
We then did a car, a lorry and a shop and have now completed a good number of jobs, all with perfect satisfaction for the customer.
We would now like to try and make a living from this, and to set up as a complete business with a unit and professional attitude.
A nice size unit has come available to us for £127 per week with rates and electric etc.
THE SCARY BIT
how do i ensure we have sufficient work and customers to
a. cover our costs
b. provide some form of wage
while i know we wont be a huge salary from the start, if we can make enough to do for now, that will be fine, its just a worry about taking a 12 month lease and not being able to meet that cost.
could we get a grant or help as a new venture?
how did you start of and what would you advice please?
while we have a nice flow of work now, it would not cover the cost of the unit right now, but i cant work it from my home and expect to do a good job or look professional
Speaking with Business Link (or Business Eye if you're based in Wales) who will be able to provide sound general advice with regards to starting trading is a first step for you.
As for the opportunity to gain a grant, from the brief details you've provided, chances are pretty much nil as grants are provided normally (and in the loosest terms here...) to businesses providing local employment opportunities, if the business has a positive "GREEN" angle or if the industry will enhance a local economy.
A business plan and cashflow projection would be a good idea should you plan to approach banks for financing your setup (obviously you already have some machinery, but have you covered all other necessities?)
Should you wish to discuss further, feel free to drop me an email.
As for the opportunity to gain a grant, from the brief details you've provided, chances are pretty much nil as grants are provided normally (and in the loosest terms here...) to businesses providing local employment opportunities, if the business has a positive "GREEN" angle or if the industry will enhance a local economy.
A business plan and cashflow projection would be a good idea should you plan to approach banks for financing your setup (obviously you already have some machinery, but have you covered all other necessities?)
Should you wish to discuss further, feel free to drop me an email.
You could try an "option to break" clause in the lease after a set period, so you are not tied in to long. Consider setting up a LTD company to protect your arses, although this does have implications with taxation, PAYE etc (Eric)
Do your sums carefully, the do them again.
He who dares, Rodney, bonjour avec moi.
Do your sums carefully, the do them again.
He who dares, Rodney, bonjour avec moi.
jamesuk28 said:
You could try an "option to break" clause in the lease after a set period, so you are not tied in to long. Consider setting up a LTD company to protect your arses, although this does have implications with taxation, PAYE etc (Eric)
Do your sums carefully, the do them again.
He who dares, Rodney, bonjour avec moi.
will we be millionaires this time next year ?Do your sums carefully, the do them again.
He who dares, Rodney, bonjour avec moi.
lol
thanks for the tips so far, its all very scary isnt it
You need to sort out a business plan and a cash flow forecast.
Is it possible to take on the lease whilst remaining in your current jobs? If so then that may help the start up whilst you're growing the business. Get to know some potential customers before you make the commitment on the lease. If you can get a reasonable number of deals lined up then that takes a lot of the fear factor out of it.
Realistically, businesses like these succeed on the energy, enthusiasm and skill of the people starting the business. The lease seems fairly cheap but you'll probably have business rates on top of that. Keep control of the costs, keep your quality levels high so that customers want to keep coming back to you and so long as there is a market out there for what you're doing then your in with a reasonable chance. Its probably worth doing some basic market research, Find out who your competitors are going to be, how established they are and compare it with a similar location some distance away.
Good luck with it.
Is it possible to take on the lease whilst remaining in your current jobs? If so then that may help the start up whilst you're growing the business. Get to know some potential customers before you make the commitment on the lease. If you can get a reasonable number of deals lined up then that takes a lot of the fear factor out of it.
Realistically, businesses like these succeed on the energy, enthusiasm and skill of the people starting the business. The lease seems fairly cheap but you'll probably have business rates on top of that. Keep control of the costs, keep your quality levels high so that customers want to keep coming back to you and so long as there is a market out there for what you're doing then your in with a reasonable chance. Its probably worth doing some basic market research, Find out who your competitors are going to be, how established they are and compare it with a similar location some distance away.
Good luck with it.
The line of work you are interested in is competitive stuff. I recently needed a sign for my new showroom and I found there were at least 3 businesses close by.
Having said that, they all appeared to be reasonably busy, only one of them took the trouble to come round to my unit and he got the job because he could see he could re-use the existing stuff and save me money, whereas the others just gave a written quote based on my obviuosly unskilled statement of my requirements.
So the moral of the story is that if you try a bit harder than the other guys you might well get the work and be OK. Tricky though. I would suggest you focus your efforts on finding a way of starting up without risking too much in terms of your existing jobs etc
Having said that, they all appeared to be reasonably busy, only one of them took the trouble to come round to my unit and he got the job because he could see he could re-use the existing stuff and save me money, whereas the others just gave a written quote based on my obviuosly unskilled statement of my requirements.
So the moral of the story is that if you try a bit harder than the other guys you might well get the work and be OK. Tricky though. I would suggest you focus your efforts on finding a way of starting up without risking too much in terms of your existing jobs etc
T_Pot said:
thanks for the tips so far, its all very scary isnt it
Not if you do some risk reduction.Make sure you've got enough money tucked away
to keep your head above water for 6-12 months.
Depending on your lifestyle and mortgage, that might
be 10K or 100K.
Get in touch with a local accountant and tell him
you want to set up a company. IIRC it's about
150 quid off the shelf. Expect lots of paperwork.
Then start trading. Adverts in local papers help.
Your safety net will help you get over the first
few months and then you will find if your idea
is a flyer or not.
Don't do silly things like use your house as
collateral. That way if your idea isn't a flyer,
you still have a roof over your head.
HTH.
BUY YOUR COMPANY FROM AN ACCOUNTANT - I dont think thats good advice at all - exchange and mart - loads of company options there - about £50 is the very most you should pay!
Get a recommendation to an Accountant - keep good records and go for it.
Keep your costs LOW - and remember having your own business is about 3 things ONLY . . .
Client - Client - Client
They pay your wages - focus on them you will be fine.
Khushy
Get a recommendation to an Accountant - keep good records and go for it.
Keep your costs LOW - and remember having your own business is about 3 things ONLY . . .
Client - Client - Client
They pay your wages - focus on them you will be fine.
Khushy
I agree - there is no need to use an accountant to set up a limited company. These days there are loads of internet based company formation agents who will set you up a limited company for as little as £30.
HOWEVER, you do not HAVE to set up a limited company to run your own business. Whether a company is the right vehicle for what you intend to do and whether your business will be big enough to warrant a company, especially in its early stages, is something you need to decide upon. There are pros and cpons associated with trading through a limited company.
HOWEVER, you do not HAVE to set up a limited company to run your own business. Whether a company is the right vehicle for what you intend to do and whether your business will be big enough to warrant a company, especially in its early stages, is something you need to decide upon. There are pros and cpons associated with trading through a limited company.
I'd use EricMc as your accountant.
Not just because I'm a firm believer in the esprit de corps that is PH but because he consistently gives advice on here that, in my opinion, is impartial, full of common sense and to be honest he seems like a very nice guy. And he clearly knows his job too.
And no, I'm neither related to him (nor have I met him or spoken to him or in fact actually ever posted about him before); I just feel that credit should be given where credit is clearly due.
He'll probably turn round now and say he's too busy but there we are!
Not just because I'm a firm believer in the esprit de corps that is PH but because he consistently gives advice on here that, in my opinion, is impartial, full of common sense and to be honest he seems like a very nice guy. And he clearly knows his job too.
And no, I'm neither related to him (nor have I met him or spoken to him or in fact actually ever posted about him before); I just feel that credit should be given where credit is clearly due.
He'll probably turn round now and say he's too busy but there we are!
Oi_Oi_Savaloy said:
Oh, and my other piece of advice is to never do business with family or friends.
Definitely agree. If you're going to partner with someone, I would suggest you define just how much you will both take from the business, and stick to it. This includes salary, dividends, expenses.. review it every year if you have to, but agree to something and put it in writing. I learnt this one from bitter experience*. Everyone always assumes slightly different things...- "why did you buy carpets from Allied Carpets on the company credit card?"
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