Discussion
I want to start my own. I've no idea what. I do have an engineering skill base but just fancy doing something completely different, trying to earn a living. Something vehicle related would be the icing on the cake but I don't want to open a second hand car lot.
As I'm employed, adding up what I'd have to bring in to break even with what I earn now is quite scary, especially once you consider paying business rates, insurance, accountants, legal fees and all the other expenses.
What really brought this home was standing in the Shires in Leicester waiting for the Mrs to come pout of Next. There's a stall there selling handbags; I started trying to do some sums about how many bags you'd have to sell to earn enough to make it worth getting out of bed and then starting thinking more about this as I viewed various companies as I wandered around & drove back. Subway for example, it's a Franchise, yes? Start up & franchise purchase, cost of shop, typically about three staff.. How on earth do they make a living?
This is what's holding me back. Have you done it, given up a salaried number for a life living off your hard graft? Good or bad? Is it the risk that keeps you 'driven'? PM me if you prefer. Ta.
As I'm employed, adding up what I'd have to bring in to break even with what I earn now is quite scary, especially once you consider paying business rates, insurance, accountants, legal fees and all the other expenses.
What really brought this home was standing in the Shires in Leicester waiting for the Mrs to come pout of Next. There's a stall there selling handbags; I started trying to do some sums about how many bags you'd have to sell to earn enough to make it worth getting out of bed and then starting thinking more about this as I viewed various companies as I wandered around & drove back. Subway for example, it's a Franchise, yes? Start up & franchise purchase, cost of shop, typically about three staff.. How on earth do they make a living?
This is what's holding me back. Have you done it, given up a salaried number for a life living off your hard graft? Good or bad? Is it the risk that keeps you 'driven'? PM me if you prefer. Ta.
dfen5 said:
I want to start my own. I've no idea what.
That probably answers your question (unfortunately). Plus, if you don't want to do something you actually know about, then your chances suddenly get even slimmer.You don't know what you want to do, you want to do it in an area you know nothing about, you've never been self-employed before. How long can you live for without any income - how does six months on £0 pa sound (less overheads)? Can you sell? Can you find customers? Can you manage cashflow?
I'm out
Simpo Two said:
I'm out
But seriously - if you do what you love, when you do it for yourself it feels like you never worked a day in your life...
...and, as working for yourself usually means one hell of alot of hours and little or no holiday - you better make sure you love doing it in the first place!
As someone who has started and now owns a few businesses, I have two observations:
1) With regard to your comment, "As I'm employed, adding up what I'd have to bring in to break even with what I earn now is quite scary, especially once you consider paying business rates, insurance, accountants, legal fees and all the other expenses." all those things come out of your turnover, not your profit and you only pay tax on your profits, so are less of a worry then you might first think.
2) If you just want to start a business for the sake of it and have no idea of what, how or why, forget it. It will save you a load of pain in the long run.
1) With regard to your comment, "As I'm employed, adding up what I'd have to bring in to break even with what I earn now is quite scary, especially once you consider paying business rates, insurance, accountants, legal fees and all the other expenses." all those things come out of your turnover, not your profit and you only pay tax on your profits, so are less of a worry then you might first think.
2) If you just want to start a business for the sake of it and have no idea of what, how or why, forget it. It will save you a load of pain in the long run.
dfen5 said:
Subway for example, it's a Franchise, yes? Start up & franchise purchase, cost of shop, typically about three staff.. How on earth do they make a living?
Theres a guy on here with a couple of Subways drives a new Murchie.
Franchise fee for subway is only $10k, retail space required is relatively small, staff are on min wage, margins are huge etc........ It's not the worlds most successful franchise for nothing.......
biglepton said:
As someone who has started and now owns a few businesses, I have two observations:
1) With regard to your comment, "As I'm employed, adding up what I'd have to bring in to break even with what I earn now is quite scary, especially once you consider paying business rates, insurance, accountants, legal fees and all the other expenses." all those things come out of your turnover, not your profit and you only pay tax on your profits, so are less of a worry then you might first think.
Umm......... all those things come out of your gross profit, not your turnover.1) With regard to your comment, "As I'm employed, adding up what I'd have to bring in to break even with what I earn now is quite scary, especially once you consider paying business rates, insurance, accountants, legal fees and all the other expenses." all those things come out of your turnover, not your profit and you only pay tax on your profits, so are less of a worry then you might first think.
unrepentant said:
dfen5 said:
Subway for example, it's a Franchise, yes? Start up & franchise purchase, cost of shop, typically about three staff.. How on earth do they make a living?
Theres a guy on here with a couple of Subways drives a new Murchie.Franchise fee for subway is only $10k, retail space required is relatively small, staff are on min wage, margins are huge etc........ It's not the worlds most successful franchise for nothing.......
IMO a key consideration is how unique the skills are required to run the business, and therefore what are the salary expectations of your competitors.
If the business requires no uncommon skills (e.g. selling handbags from a stall) you will be competing against people who would probably otherwise be in a minimum-wage job. Therefore don't expect to earn six figures, unless you have very unusual margins and volume.
If the business requires no uncommon skills (e.g. selling handbags from a stall) you will be competing against people who would probably otherwise be in a minimum-wage job. Therefore don't expect to earn six figures, unless you have very unusual margins and volume.
elster said:
unrepentant said:
dfen5 said:
Subway for example, it's a Franchise, yes? Start up & franchise purchase, cost of shop, typically about three staff.. How on earth do they make a living?
Theres a guy on here with a couple of Subways drives a new Murchie.Franchise fee for subway is only $10k, retail space required is relatively small, staff are on min wage, margins are huge etc........ It's not the worlds most successful franchise for nothing.......
unrepentant said:
elster said:
unrepentant said:
dfen5 said:
Subway for example, it's a Franchise, yes? Start up & franchise purchase, cost of shop, typically about three staff.. How on earth do they make a living?
Theres a guy on here with a couple of Subways drives a new Murchie.Franchise fee for subway is only $10k, retail space required is relatively small, staff are on min wage, margins are huge etc........ It's not the worlds most successful franchise for nothing.......
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