Is this a business

[christmc]

I appreciate that Eric you are correct,

I guess it would just end up being an old fashioned, "something trading company"

[Eric Mc]

It isn't a "company" as such in that you are not trading through a limited company - which is a whole different ball game.

The legal definition of what you are is a "Sole Trader" and you would be taxed under the Sole Trader/Self Employed tax rules - what the tax man used to define as Schedule D Case I or Case II.

[Frankeh]

This reminds me of the time my friend announced his grand plan to make money.
Cold call the entire brighton phone book asking them if they wanted "Anything doing"...
When probed into what "Anything" meant he couldn't come up with a clear answer.
I presume he meant general handyman stuff.
He didn't have any mode of transport, either.

That guy smokes way to much weed.

[christmc]

[quote=Frankeh]This reminds me of the time my friend announced his grand plan to make money.
Cold call the entire brighton phone book asking them if they wanted "Anything doing"...
When probed into what "Anything" meant he couldn't come up with a clear answer.
I presume he meant general handyman stuff.
He didn't have any mode of transport, either.

That guy smokes way to much weed.

I was hoping for a little more credability to be honest I already have a ltd company turning over 4.5-5 million per annum. Yet im being likened to a get rich quick chap, and also someone completly ignorant to how HMRC work, and the differance between sole trading and limted companies.

Come on guys this is a business forum,

[Frankeh]

christmc said:

Frankeh said:

This reminds me of the time my friend announced his grand plan to make money.
Cold call the entire brighton phone book asking them if they wanted "Anything doing"...
When probed into what "Anything" meant he couldn't come up with a clear answer.
I presume he meant general handyman stuff.
He didn't have any mode of transport, either.

That guy smokes way to much weed.

I was hoping for a little more credability to be honest I already have a ltd company turning over 4.5-5 million per annum. Yet im being likened to a get rich quick chap, and also someone completly ignorant to how HMRC work, and the differance between sole trading and limted companies.

Come on guys this is a business forum,

Wasn't a personal attack. Just the lack of focus I was commenting on.

Edited by Frankeh on Monday 14th September 15:09

[AE82GT]

to be called a business you should be able to walk away for 12 months and
still acheve growth, if not then it's just a job you own. not a bad thing but
for a company to have value the owner must not be imputing 99% of the I.P.

[christmc]

AE82GT said:

to be called a business you should be able to walk away for 12 months and
still acheve growth, if not then it's just a job you own. not a bad thing but
for a company to have value the owner must not be imputing 99% of the I.P.

yea thats a good point AE82, In essence i suppose anything that generates enough income to pay all relevant people , owner staff rent rates etc is good enough,

The key to what im proposing to do is that i always try to find a buyer before i even buy the stock itself, so it will always remain a passetive cash flow business

[Eric Mc]

Sorry if I was teaching you to suck eggs - but your loose reference to being a "company" indicated to me that you werebn't completely clear on what a company actually was.

Also, your initial post indicated that you might think that trading at a low level was perhaps exempted from the normal HMRC notification rules.

Again, sorry for offering you advise you obviously didn't need .

Edited by Eric Mc on Monday 14th September 15:29

[christmc]

[quote=Eric Mc]Sorry if I was teaching you to suck eggs - but your loose reference to being a "company" indicated to me that you werebn't completely clear on what a company actually was.

Also, your initial post indicated that you might think that trading at a low level was perhaps exempted from the normal HMRC notification rules.

Again, sorry for offering you advise you obviously didn't need .

Eric , No problem it is so easy to get the wrong end of the stick on these types of forums, perhaps i should have been clearer myself.

I suppose the reason why i was not too clear was because I have bought and sold all sorts of odds and sods over the last few months, and all i have done is look around and how much they sell for and then offered people a little less,, so It seems very simple and it seems like it would be reasonably simple to upscale

[TIGA84]

christmc said:

AE82GT said:

to be called a business you should be able to walk away for 12 months and
still acheve growth, if not then it's just a job you own. not a bad thing but
for a company to have value the owner must not be imputing 99% of the I.P.

yea thats a good point AE82, In essence i suppose anything that generates enough income to pay all relevant people , owner staff rent rates etc is good enough,

The key to what im proposing to do is that i always try to find a buyer before i even buy the stock itself, so it will always remain a passetive cash flow business

Interesting. I see where you're coming from. I think over time you'll see what kind of business it turns into, ie what you can make more profit on, quicker. Whether it be goggles (www.goggle.com would probably see some terrific traffic!) or electronics etc, then go that way. I suppose the bonus would be if you did exhaust that chosen avenue, you could also revert to how you started.

This time next year Rodney........

[jamoor]

Yes, it's called Asset Disposal.

[skwdenyer]

jamoor said:

Yes, it's called Asset Disposal.

Indeed. Once you build up a scalable model for how to sell things at a good price in a reasonable timescale, it becomes possible to do this on commission, i.e. without having tie up capital in the actual stock. Thus the business can grow much faster (potentially).

[Stitch]

jas xjr said:

my only criterion for this type of situaton is ...can i sell this business on? if it can be sold on as a going concern ,yes then it is a business. my fear would be that it relies too heavily on you buying and selling. would a new owner be capable of doing the same thing? if the right staff are in plkace then possibly

If the OP ends up with a contact list of active buyers and sellers (for example maybe a list of Administrators who would call him to buy liquidated stock), then that would have a value as well. I like your definition, but plenty of large, well established businesses have gone down the tubes when a strong leader or management team have left, so think it may be a little restrictive.