Starting a business, how easy?
Discussion
I am currently employed by a company, but have great ambitions of starting my own company. I am quite young, almost 23. 2 years graudated.
I have a fair few ideas of services I can provide, things I can do, risk assessments, business plan etc. I realise that to many in scotland, 'scottish enterprise' and companies like business gateway will be vital in helping me gain all the knowledge required. I have already been in touch with them and they have been most useful. Problem is, I have not been able to attend any of their free courses availiable as yet due to my own work commitments.
I have almost 7k put aside and I am managing to save over 1k a month. Currently going about in a cheap car and sold the fast one to aid this. Stopping myself buying another dc5 is very tough.
Initially I would be operating as a sole trader. According to that business gateway site
http://www.bgateway.com/bdotg/action/detail?r.l1=1...
Sole trader is extremely simple. And it will jsut be a case of paying my own tax and NI at ends of years. is this so easy when I am already employed.
Apologies is these questions to many of you who have been running own companies for decades.
I have a fair few ideas of services I can provide, things I can do, risk assessments, business plan etc. I realise that to many in scotland, 'scottish enterprise' and companies like business gateway will be vital in helping me gain all the knowledge required. I have already been in touch with them and they have been most useful. Problem is, I have not been able to attend any of their free courses availiable as yet due to my own work commitments.
I have almost 7k put aside and I am managing to save over 1k a month. Currently going about in a cheap car and sold the fast one to aid this. Stopping myself buying another dc5 is very tough.
Initially I would be operating as a sole trader. According to that business gateway site
http://www.bgateway.com/bdotg/action/detail?r.l1=1...
Sole trader is extremely simple. And it will jsut be a case of paying my own tax and NI at ends of years. is this so easy when I am already employed.
Apologies is these questions to many of you who have been running own companies for decades.
I would say irrespective of the type of business you intend to go into, always try to keep your expenses down to a bare minimum, work from home if possible, don't rent expensive flashy office space etc, etc...
Get a good accountant, and always set aside money every month towards your next tax bill.....
Golden rule...Expenses down, profits up..........
Good luck.....
Get a good accountant, and always set aside money every month towards your next tax bill.....
Golden rule...Expenses down, profits up..........
Good luck.....
The first issue about starting and running your own business is that you must KNOW the activity you are getting involved in. Dreams of profit and being a successful entrepeneur should be put on the back burner whilst you get to grips with the basics of the business.
Running a new business whilst still employed is a good idea if it is feasible. At least some of the risk factor is taken out of the equation if you have a regular income to fall back on.
If you do set up as a sole trader (the best option if just putting your toe in the water of running a business) you need to notify the Revenue within three months of commencement.
You may need to start paying Class 2 NI within this three month period - not every form of tax or NI is paid on an annual basis.
You will need to start preparing annual accounts and submitting Self Assessment tax returns.
If you are liable to tax because the business is profitable, this tax (and Class 4 NI) is essentially paid in January each year and there may also be a requirement to make a Payment on Account in July as well.
If your business is making losses, you might be able to make use of the business losses to reclaim tax already during the year e.g. tax collected from your employment under the PAYE system.
Running a new business whilst still employed is a good idea if it is feasible. At least some of the risk factor is taken out of the equation if you have a regular income to fall back on.
If you do set up as a sole trader (the best option if just putting your toe in the water of running a business) you need to notify the Revenue within three months of commencement.
You may need to start paying Class 2 NI within this three month period - not every form of tax or NI is paid on an annual basis.
You will need to start preparing annual accounts and submitting Self Assessment tax returns.
If you are liable to tax because the business is profitable, this tax (and Class 4 NI) is essentially paid in January each year and there may also be a requirement to make a Payment on Account in July as well.
If your business is making losses, you might be able to make use of the business losses to reclaim tax already during the year e.g. tax collected from your employment under the PAYE system.
Eric Mc said:
Running a new business whilst still employed is a good idea if it is feasible. At least some of the risk factor is taken out of the equation if you have a regular income to fall back on.
Definitely sound advice, although unfortunately this isn't always possible.....You are never too young to start, ask Mike Ashley, Richard Branson, Alan Sugar etc........
Guys, thanks for replies. I realise thathttp://www.pistonheads.com/gassing/post.asp?h=0&f=92&t=632603&i=0&m=newReply dreams of big businesses are all too common and all too many go right down the s
tter. I am cetainly most suited to working for myself, in my opinion obviously. I do not enjoy all the bull that comes working alongside big companies, bureauracy, if thats a better way to put it.
I don't think my work would be too happy if I told them what I was doing, I am sure in the inital contract is said I could not do anything entrepenural. But I will have to check this, as the regular income from them is very important.
Many low cost businesses(ie. few overheads) can be done from home and I am hoping the accountant will have no problems in filling in annual accounts. Although I am sure this can be easily leanred for people with reasonable intelligence.
I have an excellent credit history, so getting a licence to be a repo man; debt collector; bailiff or pawnbroker shouldn't be a problem. Just not sure how difficult/possible that would be with a job and without an office. Feasible from home?
Thanks for replys guys, really helpful as I realise alot of info is out there, but it's much better to get opinions from people who have experience
M.
tter. I am cetainly most suited to working for myself, in my opinion obviously. I do not enjoy all the bull that comes working alongside big companies, bureauracy, if thats a better way to put it. I don't think my work would be too happy if I told them what I was doing, I am sure in the inital contract is said I could not do anything entrepenural. But I will have to check this, as the regular income from them is very important.
Many low cost businesses(ie. few overheads) can be done from home and I am hoping the accountant will have no problems in filling in annual accounts. Although I am sure this can be easily leanred for people with reasonable intelligence.
I have an excellent credit history, so getting a licence to be a repo man; debt collector; bailiff or pawnbroker shouldn't be a problem. Just not sure how difficult/possible that would be with a job and without an office. Feasible from home?
Thanks for replys guys, really helpful as I realise alot of info is out there, but it's much better to get opinions from people who have experience
M.
amaftau said:
Guys, thanks for replies. I realise thathttp://www.pistonheads.com/gassing/post.asp?h=0&f=92&t=632603&i=0&m=newReply dreams of big businesses are all too common and all too many go right down the stter. I am cetainly most suited to working for myself, in my opinion obviously. I do not enjoy all the bull that comes working alongside big companies, bureauracy, if thats a better way to put it.
I don't think my work would be too happy if I told them what I was doing, I am sure in the inital contract is said I could not do anything entrepenural. But I will have to check this, as the regular income from them is very important.
Many low cost businesses(ie. few overheads) can be done from home and I am hoping the accountant will have no problems in filling in annual accounts. Although I am sure this can be easily leanred for people with reasonable intelligence.
I have an excellent credit history, so getting a licence to be a repo man; debt collector; bailiff or pawnbroker shouldn't be a problem. Just not sure how difficult/possible that would be with a job and without an office. Feasible from home?
Thanks for replys guys, really helpful as I realise alot of info is out there, but it's much better to get opinions from people who have experience
M.
Don't forget that there are other employments that don't involve "big companies". 80% of the UK workforce work for smallmedium sized businesses.tter. I am cetainly most suited to working for myself, in my opinion obviously. I do not enjoy all the bull that comes working alongside big companies, bureauracy, if thats a better way to put it. I don't think my work would be too happy if I told them what I was doing, I am sure in the inital contract is said I could not do anything entrepenural. But I will have to check this, as the regular income from them is very important.
Many low cost businesses(ie. few overheads) can be done from home and I am hoping the accountant will have no problems in filling in annual accounts. Although I am sure this can be easily leanred for people with reasonable intelligence.
I have an excellent credit history, so getting a licence to be a repo man; debt collector; bailiff or pawnbroker shouldn't be a problem. Just not sure how difficult/possible that would be with a job and without an office. Feasible from home?
Thanks for replys guys, really helpful as I realise alot of info is out there, but it's much better to get opinions from people who have experience
M.
What are your qualifications?
What types of business experience have you got (that includes working in business as opposed to actually owning and running one)?
Eric Mc said:
amaftau said:
Guys, thanks for replies. I realise thathttp://www.pistonheads.com/gassing/post.asp?h=0&f=92&t=632603&i=0&m=newReply dreams of big businesses are all too common and all too many go right down the stter. I am cetainly most suited to working for myself, in my opinion obviously. I do not enjoy all the bull that comes working alongside big companies, bureauracy, if thats a better way to put it.
I don't think my work would be too happy if I told them what I was doing, I am sure in the inital contract is said I could not do anything entrepenural. But I will have to check this, as the regular income from them is very important.
Many low cost businesses(ie. few overheads) can be done from home and I am hoping the accountant will have no problems in filling in annual accounts. Although I am sure this can be easily leanred for people with reasonable intelligence.
I have an excellent credit history, so getting a licence to be a repo man; debt collector; bailiff or pawnbroker shouldn't be a problem. Just not sure how difficult/possible that would be with a job and without an office. Feasible from home?
Thanks for replys guys, really helpful as I realise alot of info is out there, but it's much better to get opinions from people who have experience
M.
Don't forget that there are other employments that don't involve "big companies". 80% of the UK workforce work for smallmedium sized businesses.tter. I am cetainly most suited to working for myself, in my opinion obviously. I do not enjoy all the bull that comes working alongside big companies, bureauracy, if thats a better way to put it. I don't think my work would be too happy if I told them what I was doing, I am sure in the inital contract is said I could not do anything entrepenural. But I will have to check this, as the regular income from them is very important.
Many low cost businesses(ie. few overheads) can be done from home and I am hoping the accountant will have no problems in filling in annual accounts. Although I am sure this can be easily leanred for people with reasonable intelligence.
I have an excellent credit history, so getting a licence to be a repo man; debt collector; bailiff or pawnbroker shouldn't be a problem. Just not sure how difficult/possible that would be with a job and without an office. Feasible from home?
Thanks for replys guys, really helpful as I realise alot of info is out there, but it's much better to get opinions from people who have experience
M.
What are your qualifications?
What types of business experience have you got (that includes working in business as opposed to actually owning and running one)?
Parents run a business in motoring industry and have had some exposure to it. Helping out with paper work being probably the most beneficial, as well as learning some hands on stuff.
Current work wise. Trainee project engineering. Not sure how much detail you want me to go into but im in a rush at the minute. I have to pack and a 4hr journey for the mon-fri slog next week. Thanks again though.
Owning and running one is 0. Guess it's worth risking some of my thousands to give it a shot. Don't want to be sitting here next year wishing I had got on with it. No doubt planning is one of the absolute keys of starting so you must know exactly what you are going to go and how.
Off to pack.
M
I've had my own business for 11 years and the above advice is very sound. You need an understanding of the industry you want to start in, also you need to be committed to deal with very long hours, stress and financial risk especially at the start.
My advice would be to stay put at the moment, use your time to build up your knowledge, money and contacts as I would not launch a company at this present time. You are only 23, there is loads of time yet. Once this finacial period is over you will be in a strong position to start out on your own.
Best of luck whatever you decide.
Dave
My advice would be to stay put at the moment, use your time to build up your knowledge, money and contacts as I would not launch a company at this present time. You are only 23, there is loads of time yet. Once this finacial period is over you will be in a strong position to start out on your own.
Best of luck whatever you decide.
Dave
timskipper said:
D_G said:
I would not launch a company at this present time. You are only 23, there is loads of time yet. Once this finacial period is over you will be in a strong position to start out on your own.
What a load of crap!a) what business you want to start up
b) have a good working knowledge of how that business operates
c) a good knowledge of basic business principles
The OP does seem rather inexperienced in these areas, which is why he is asking the questions he is.
So, the issue isn't age, but relevant experience and knowledge.
Eric Mc said:
timskipper said:
D_G said:
I would not launch a company at this present time. You are only 23, there is loads of time yet. Once this finacial period is over you will be in a strong position to start out on your own.
What a load of crap!a) what business you want to start up
b) have a good working knowledge of how that business operates
c) a good knowledge of basic business principles
The OP does seem rather inexperienced in these areas, which is why he is asking the questions he is.
So, the issue isn't age, but relevant experience and knowledge.
Just to add my 0.02 worth
1. Make sure - as has been said - you know the chosen industry well.
2. Start when you're young, and have nothing to lose, minimal commitments (mortgage, family etc)
3. Start off from home if you can; I had three of us working from a tiny bedroom. We could barely all fit round the desk.
4. Start off without borrowing if you can - I've never borrowed from the bank (at least for the business) and I wouldn't have it any other way.
5. If you reckon you can do something better than you see other people doing it, then go for it. Most people don't ever try.
1. Make sure - as has been said - you know the chosen industry well.
2. Start when you're young, and have nothing to lose, minimal commitments (mortgage, family etc)
3. Start off from home if you can; I had three of us working from a tiny bedroom. We could barely all fit round the desk.
4. Start off without borrowing if you can - I've never borrowed from the bank (at least for the business) and I wouldn't have it any other way.
5. If you reckon you can do something better than you see other people doing it, then go for it. Most people don't ever try.
zadumbreion said:
Just to add my 0.02 worth
1. Make sure - as has been said - you know the chosen industry well.
2. Start when you're young, and have nothing to lose, minimal commitments (mortgage, family etc)
3. Start off from home if you can; I had three of us working from a tiny bedroom. We could barely all fit round the desk.
4. Start off without borrowing if you can - I've never borrowed from the bank (at least for the business) and I wouldn't have it any other way.
5. If you reckon you can do something better than you see other people doing it, then go for it. Most people don't ever try.
what did you do?1. Make sure - as has been said - you know the chosen industry well.
2. Start when you're young, and have nothing to lose, minimal commitments (mortgage, family etc)
3. Start off from home if you can; I had three of us working from a tiny bedroom. We could barely all fit round the desk.
4. Start off without borrowing if you can - I've never borrowed from the bank (at least for the business) and I wouldn't have it any other way.
5. If you reckon you can do something better than you see other people doing it, then go for it. Most people don't ever try.
SystemParanoia said:
zadumbreion said:
Just to add my 0.02 worth
1. Make sure - as has been said - you know the chosen industry well.
2. Start when you're young, and have nothing to lose, minimal commitments (mortgage, family etc)
3. Start off from home if you can; I had three of us working from a tiny bedroom. We could barely all fit round the desk.
4. Start off without borrowing if you can - I've never borrowed from the bank (at least for the business) and I wouldn't have it any other way.
5. If you reckon you can do something better than you see other people doing it, then go for it. Most people don't ever try.
what did you do?1. Make sure - as has been said - you know the chosen industry well.
2. Start when you're young, and have nothing to lose, minimal commitments (mortgage, family etc)
3. Start off from home if you can; I had three of us working from a tiny bedroom. We could barely all fit round the desk.
4. Start off without borrowing if you can - I've never borrowed from the bank (at least for the business) and I wouldn't have it any other way.
5. If you reckon you can do something better than you see other people doing it, then go for it. Most people don't ever try.
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