New Business, where to start?
Discussion
Hi All
Any input at any level appreciated, even involving fire and frozen sausages being banged into lawns!
I've wanted to work for myself for a long time, but an ever increasing salary in a fairly stable job has made it difficult to leave.
However, things have changed, work has become unbearable due to a personality disorder MD with emails, whatssaps etc coming in evenings, weekends etc etc
It's time to go and I dont fancy going to another 9-5, sorry 8-7.
Im a skilled marketing professional with the ability to single handedly build websites, run advertising, all the digital stuff. Its in high demand and although there is plenty of competition I already have some smallish clients I work with for pin money shall we say.
To cut to the chase, I have no idea what I need to do on the fundamental side of things.
Sole trader or ltd?
Insurance?
How do I pay myself?
What about pensions?
Tax?
Billing etc
Banking
Any help appreciated
Any input at any level appreciated, even involving fire and frozen sausages being banged into lawns!
I've wanted to work for myself for a long time, but an ever increasing salary in a fairly stable job has made it difficult to leave.
However, things have changed, work has become unbearable due to a personality disorder MD with emails, whatssaps etc coming in evenings, weekends etc etc
It's time to go and I dont fancy going to another 9-5, sorry 8-7.
Im a skilled marketing professional with the ability to single handedly build websites, run advertising, all the digital stuff. Its in high demand and although there is plenty of competition I already have some smallish clients I work with for pin money shall we say.
To cut to the chase, I have no idea what I need to do on the fundamental side of things.
Sole trader or ltd?
Insurance?
How do I pay myself?
What about pensions?
Tax?
Billing etc
Banking
Any help appreciated
8-P said:
Hi All
Any input at any level appreciated, even involving fire and frozen sausages being banged into lawns!
I've wanted to work for myself for a long time, but an ever increasing salary in a fairly stable job has made it difficult to leave.
However, things have changed, work has become unbearable due to a personality disorder MD with emails, whatssaps etc coming in evenings, weekends etc etc
It's time to go and I dont fancy going to another 9-5, sorry 8-7.
Im a skilled marketing professional with the ability to single handedly build websites, run advertising, all the digital stuff. Its in high demand and although there is plenty of competition I already have some smallish clients I work with for pin money shall we say.
To cut to the chase, I have no idea what I need to do on the fundamental side of things.
Sole trader or ltd?
Insurance?
How do I pay myself?
What about pensions?
Tax?
Billing etc
Banking
Any help appreciated
First thing is to get an accountant. Ask around for recommendations, speak to a few and choose the one you feel most comfortable with. They will then tell you what you need to know and arrange everything for you and maintain the boring but essential stuff going forward while you crack on with the business. Expect to pay around £90 - £120 a month for their service.Any input at any level appreciated, even involving fire and frozen sausages being banged into lawns!
I've wanted to work for myself for a long time, but an ever increasing salary in a fairly stable job has made it difficult to leave.
However, things have changed, work has become unbearable due to a personality disorder MD with emails, whatssaps etc coming in evenings, weekends etc etc
It's time to go and I dont fancy going to another 9-5, sorry 8-7.
Im a skilled marketing professional with the ability to single handedly build websites, run advertising, all the digital stuff. Its in high demand and although there is plenty of competition I already have some smallish clients I work with for pin money shall we say.
To cut to the chase, I have no idea what I need to do on the fundamental side of things.
Sole trader or ltd?
Insurance?
How do I pay myself?
What about pensions?
Tax?
Billing etc
Banking
Any help appreciated
Would suggest you set up as a limited company.
Set up a business bank account (I'd recommend Starling Bank for this but others are available).
Pay your self PAYE - minimum wage only. Top up your earnings with dividends - payments made to you as a director (subject to cash availability) which is taxed less than would be the case if you paid yourself the same amount via PAYE.
Pensions... your'e on your own. Pay in as much as you want.
But as I say, all of these things will be covered by your account. The best advice is to crack on - just start. Everything will fall into place.
I would exert your energy on thinking about getting clients, winning work, what you'll base your fees on (probably an hourly rate) and what that rate will be.
Talking of winning clients..... YHM!
Well, as a skilled marketing professional you'll need to know how to market yourself/your product. No point having all the organisation in the world if there's no work to put into it.
My own formula which worked well for me is:
Sole trader or ltd? Sole Trader
Insurance? Started with PI but dropped it after 2-3 years as I grew in confidence and experience.
How do I pay myself? If you're a sole trader, just transfer money from your business account to your private account. It's all the same for tax purposes.
What about pensions? Look at private pensions - the Finance forum would be a good place to start. You'll have to pay NI for your state pension as well.
Tax? Not unless you make a profit of more than £12,500pa (20/21). Eric will tell you about dealing with HMRC.
Billing etc? Get a bit of A4 (or open a new document), type 'Invoice' at the top, add details, numbers, and send. It's great
Banking? You should open a separate account to keep 'business money' separate from 'private money' because it makes the accounting easier. It doesn't have to be an Official Business Account, just a different one.
My own formula which worked well for me is:
Sole trader or ltd? Sole Trader
Insurance? Started with PI but dropped it after 2-3 years as I grew in confidence and experience.
How do I pay myself? If you're a sole trader, just transfer money from your business account to your private account. It's all the same for tax purposes.
What about pensions? Look at private pensions - the Finance forum would be a good place to start. You'll have to pay NI for your state pension as well.
Tax? Not unless you make a profit of more than £12,500pa (20/21). Eric will tell you about dealing with HMRC.
Billing etc? Get a bit of A4 (or open a new document), type 'Invoice' at the top, add details, numbers, and send. It's great
Banking? You should open a separate account to keep 'business money' separate from 'private money' because it makes the accounting easier. It doesn't have to be an Official Business Account, just a different one.
8-P said:
However, things have changed, work has become unbearable due to a personality disorder MD with emails, whatssaps etc coming in evenings, weekends etc etc
It's time to go and I dont fancy going to another 9-5, sorry 8-7.
If you don't like after hours emails and long hours don't start a business.It's time to go and I dont fancy going to another 9-5, sorry 8-7.
The
kers8-P said:
Hi All
Any input at any level appreciated, even involving fire and frozen sausages being banged into lawns!
I've wanted to work for myself for a long time, but an ever increasing salary in a fairly stable job has made it difficult to leave.
However, things have changed, work has become unbearable due to a personality disorder MD with emails, whatssaps etc coming in evenings, weekends etc etc
It's time to go and I dont fancy going to another 9-5, sorry 8-7.
Im a skilled marketing professional with the ability to single handedly build websites, run advertising, all the digital stuff. Its in high demand and although there is plenty of competition I already have some smallish clients I work with for pin money shall we say.
To cut to the chase, I have no idea what I need to do on the fundamental side of things.
Sole trader or ltd?
Insurance?
How do I pay myself?
What about pensions?
Tax?
Billing etc
Banking
Any help appreciated
When I first went into business the local council or Chamber of Commerce ran business start-up courses. I am not sure if such a thing is still available. But it was very helpful for someone completely new to running his own show.Any input at any level appreciated, even involving fire and frozen sausages being banged into lawns!
I've wanted to work for myself for a long time, but an ever increasing salary in a fairly stable job has made it difficult to leave.
However, things have changed, work has become unbearable due to a personality disorder MD with emails, whatssaps etc coming in evenings, weekends etc etc
It's time to go and I dont fancy going to another 9-5, sorry 8-7.
Im a skilled marketing professional with the ability to single handedly build websites, run advertising, all the digital stuff. Its in high demand and although there is plenty of competition I already have some smallish clients I work with for pin money shall we say.
To cut to the chase, I have no idea what I need to do on the fundamental side of things.
Sole trader or ltd?
Insurance?
How do I pay myself?
What about pensions?
Tax?
Billing etc
Banking
Any help appreciated
That was over twenty years ago mind you, so things that may have been available may not now be.
StevieBee said:
First thing is to get an accountant. Ask around for recommendations, speak to a few and choose the one you feel most comfortable with. They will then tell you what you need to know and arrange everything for you and maintain the boring but essential stuff going forward while you crack on with the business. Expect to pay around £90 - £120 a month for their service.
Would suggest you set up as a limited company.
Set up a business bank account (I'd recommend Starling Bank for this but others are available).
Pay your self PAYE - minimum wage only. Top up your earnings with dividends - payments made to you as a director (subject to cash availability) which is taxed less than would be the case if you paid yourself the same amount via PAYE.
Pensions... your'e on your own. Pay in as much as you want.
But as I say, all of these things will be covered by your account. The best advice is to crack on - just start. Everything will fall into place.
I would exert your energy on thinking about getting clients, winning work, what you'll base your fees on (probably an hourly rate) and what that rate will be.
Talking of winning clients..... YHM!
Thanks for the tips, one of my cilents is a newish business and I know his accountant has been very useful so Ill speak to him. He owes me a favour, its my work that has sent his business rocketing and he knows it.Would suggest you set up as a limited company.
Set up a business bank account (I'd recommend Starling Bank for this but others are available).
Pay your self PAYE - minimum wage only. Top up your earnings with dividends - payments made to you as a director (subject to cash availability) which is taxed less than would be the case if you paid yourself the same amount via PAYE.
Pensions... your'e on your own. Pay in as much as you want.
But as I say, all of these things will be covered by your account. The best advice is to crack on - just start. Everything will fall into place.
I would exert your energy on thinking about getting clients, winning work, what you'll base your fees on (probably an hourly rate) and what that rate will be.
Talking of winning clients..... YHM!
Will check mail now
Strongest advice is to do the bare minimum of ‘creating a business’ until you’ve got income and need to.
Biggest mistake nearly every new business makes is to spend loads of cash up front on pointless websites/logos/PA services etc. which don’t actually make a jot of difference to generating income. I think for many it’s a confidence thing, they feel they won’t be taken seriously without it. Unfortunately it’s a distraction and a waste of money.
In professional services, the product is you. So selling is about you getting out there and connecting with people you know (mostly) and some you don’t to let them know what you can do and see if they need help.
Focus on getting work and generating some revenues, not creating a business, and then as get underway you can put some of the business elements into place.
Biggest mistake nearly every new business makes is to spend loads of cash up front on pointless websites/logos/PA services etc. which don’t actually make a jot of difference to generating income. I think for many it’s a confidence thing, they feel they won’t be taken seriously without it. Unfortunately it’s a distraction and a waste of money.
In professional services, the product is you. So selling is about you getting out there and connecting with people you know (mostly) and some you don’t to let them know what you can do and see if they need help.
Focus on getting work and generating some revenues, not creating a business, and then as get underway you can put some of the business elements into place.
Simpo Two said:
Well, as a skilled marketing professional you'll need to know how to market yourself/your product. No point having all the organisation in the world if there's no work to put into it.
My own formula which worked well for me is:
Sole trader or ltd? Sole Trader
Insurance? Started with PI but dropped it after 2-3 years as I grew in confidence and experience.
How do I pay myself? If you're a sole trader, just transfer money from your business account to your private account. It's all the same for tax purposes.
What about pensions? Look at private pensions - the Finance forum would be a good place to start. You'll have to pay NI for your state pension as well.
Tax? Not unless you make a profit of more than £12,500pa (20/21). Eric will tell you about dealing with HMRC.
Billing etc? Get a bit of A4 (or open a new document), type 'Invoice' at the top, add details, numbers, and send. It's great
Banking? You should open a separate account to keep 'business money' separate from 'private money' because it makes the accounting easier. It doesn't have to be an Official Business Account, just a different one.
Thanks, some good tips. Yes fortunately Ive got the website, logo and marketing covered, so Im happy I can get myself out there.My own formula which worked well for me is:
Sole trader or ltd? Sole Trader
Insurance? Started with PI but dropped it after 2-3 years as I grew in confidence and experience.
How do I pay myself? If you're a sole trader, just transfer money from your business account to your private account. It's all the same for tax purposes.
What about pensions? Look at private pensions - the Finance forum would be a good place to start. You'll have to pay NI for your state pension as well.
Tax? Not unless you make a profit of more than £12,500pa (20/21). Eric will tell you about dealing with HMRC.
Billing etc? Get a bit of A4 (or open a new document), type 'Invoice' at the top, add details, numbers, and send. It's great
Banking? You should open a separate account to keep 'business money' separate from 'private money' because it makes the accounting easier. It doesn't have to be an Official Business Account, just a different one.
Be really careful about the expectations you set with new clients (especially the first ones you take on) about what they’re paying for and what they’re not. You’ll want to show a bit of goodwill from time to time but, especially when offering a knowledge based service, some will take the piss if you let them.
Personally if you’re working on well defined projects (even if spread over a long time) I’d try to avoid hourly rate as the main billing approach if possible. Hourly rates invite comparisons with client’s own rate or what they think someone someone should be earning, not the value they offer as an external party and not taking into account your overheads or periods in which you’re not earning. They can also limit your earnings (you have to increase rates or work longer hours to earn more!). That said, hourly rate for changes/out of scope can work well.
Even with an accountant, be super organised with your billing (and outgoings). Spreadsheet and file everything away month by month. You’ll not only save a lot vs throwing it all at the accountant but you’ll have a much better handle on your business as it grows.
Personally if you’re working on well defined projects (even if spread over a long time) I’d try to avoid hourly rate as the main billing approach if possible. Hourly rates invite comparisons with client’s own rate or what they think someone someone should be earning, not the value they offer as an external party and not taking into account your overheads or periods in which you’re not earning. They can also limit your earnings (you have to increase rates or work longer hours to earn more!). That said, hourly rate for changes/out of scope can work well.
Even with an accountant, be super organised with your billing (and outgoings). Spreadsheet and file everything away month by month. You’ll not only save a lot vs throwing it all at the accountant but you’ll have a much better handle on your business as it grows.
abzmike said:
If your prime motivation is to work fewer hours, be careful what you wish for going on your own. Of course you will be the sole beneficiary.
Yes, from other friends experience Im aware Ill be in for some serious hours, but Im happier doing that as you say when its for me. Never been afraid of hard work.Louis Balfour said:
8-P said:
Hi All
Any input at any level appreciated, even involving fire and frozen sausages being banged into lawns!
I've wanted to work for myself for a long time, but an ever increasing salary in a fairly stable job has made it difficult to leave.
However, things have changed, work has become unbearable due to a personality disorder MD with emails, whatssaps etc coming in evenings, weekends etc etc
It's time to go and I dont fancy going to another 9-5, sorry 8-7.
Im a skilled marketing professional with the ability to single handedly build websites, run advertising, all the digital stuff. Its in high demand and although there is plenty of competition I already have some smallish clients I work with for pin money shall we say.
To cut to the chase, I have no idea what I need to do on the fundamental side of things.
Sole trader or ltd?
Insurance?
How do I pay myself?
What about pensions?
Tax?
Billing etc
Banking
Any help appreciated
When I first went into business the local council or Chamber of Commerce ran business start-up courses. I am not sure if such a thing is still available. But it was very helpful for someone completely new to running his own show.Any input at any level appreciated, even involving fire and frozen sausages being banged into lawns!
I've wanted to work for myself for a long time, but an ever increasing salary in a fairly stable job has made it difficult to leave.
However, things have changed, work has become unbearable due to a personality disorder MD with emails, whatssaps etc coming in evenings, weekends etc etc
It's time to go and I dont fancy going to another 9-5, sorry 8-7.
Im a skilled marketing professional with the ability to single handedly build websites, run advertising, all the digital stuff. Its in high demand and although there is plenty of competition I already have some smallish clients I work with for pin money shall we say.
To cut to the chase, I have no idea what I need to do on the fundamental side of things.
Sole trader or ltd?
Insurance?
How do I pay myself?
What about pensions?
Tax?
Billing etc
Banking
Any help appreciated
That was over twenty years ago mind you, so things that may have been available may not now be.
DSLiverpool said:
Why not use your skill to sell online, can be very rewarding or st.
If you want to carry on doing webby / marketing set up as a sole trader with good liability insurance - work will find you.
I have been tempted and still am to find a product, set up an ecom site and get selling but its not quite as straightforward as it sounds. Advertising costs can be steep and its easy to burn money fast.t.If you want to carry on doing webby / marketing set up as a sole trader with good liability insurance - work will find you.
LooneyTunes said:
Be really careful about the expectations you set with new clients (especially the first ones you take on) about what they’re paying for and what they’re not. You’ll want to show a bit of goodwill from time to time but, especially when offering a knowledge based service, some will take the piss if you let them.
Personally if you’re working on well defined projects (even if spread over a long time) I’d try to avoid hourly rate as the main billing approach if possible. Hourly rates invite comparisons with client’s own rate or what they think someone someone should be earning, not the value they offer as an external party and not taking into account your overheads or periods in which you’re not earning. They can also limit your earnings (you have to increase rates or work longer hours to earn more!). That said, hourly rate for changes/out of scope can work well.
Even with an accountant, be super organised with your billing (and outgoings). Spreadsheet and file everything away month by month. You’ll not only save a lot vs throwing it all at the accountant but you’ll have a much better handle on your business as it grows.
Also great advice thanks. I have been using an hourly rate but totally agree and already plan to move away from it on the whole. Personally if you’re working on well defined projects (even if spread over a long time) I’d try to avoid hourly rate as the main billing approach if possible. Hourly rates invite comparisons with client’s own rate or what they think someone someone should be earning, not the value they offer as an external party and not taking into account your overheads or periods in which you’re not earning. They can also limit your earnings (you have to increase rates or work longer hours to earn more!). That said, hourly rate for changes/out of scope can work well.
Even with an accountant, be super organised with your billing (and outgoings). Spreadsheet and file everything away month by month. You’ll not only save a lot vs throwing it all at the accountant but you’ll have a much better handle on your business as it grows.
8-P said:
DSLiverpool said:
Why not use your skill to sell online, can be very rewarding or st.
If you want to carry on doing webby / marketing set up as a sole trader with good liability insurance - work will find you.
I have been tempted and still am to find a product, set up an ecom site and get selling but its not quite as straightforward as it sounds. Advertising costs can be steep and its easy to burn money fast.t.If you want to carry on doing webby / marketing set up as a sole trader with good liability insurance - work will find you.
We’re doing a zoom on Wednesday to club members.
No stock, no real investment, no marketing.
I exited the project last year.
My strategy.
https://vm.tiktok.com/ZMeUVSCfU/
https://vm.tiktok.com/ZMeUVaa5C/
[footnote]Edited by DSLiverpool on Saturday 27th March 16:30[/footnote
Edited by DSLiverpool on Saturday 27th March 17:23
Your accountant should ask you loads of questions, current earnings, house values, mortgages, children, pensions, savings, what you need to live off, what your wife/partner earns etc.
The more you tell them, the better the picture they can build of what you need and how they can help you.
I would also speak to a financial advisor and see where you sit, most FAs and Accountants will offer a free initial consultation and at least get you pointing in the right direction, knowledge is power!
The more you tell them, the better the picture they can build of what you need and how they can help you.
I would also speak to a financial advisor and see where you sit, most FAs and Accountants will offer a free initial consultation and at least get you pointing in the right direction, knowledge is power!
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