Business Idea - Novice
Discussion
I’ve never quite been entrepreneurial, liked the idea of having my own business but I’ve always enjoyed what I did for a job and was happy to be paid to do it. Minimal risk and working in an environment which would cost a lot involved in these days. However as time has gone on and as happy as I am doing this work the appeal of working for myself grows every larger.
Overall my plan is to try to grow something alongside my current job with a view to eventually leaving and doing it full time. Perhaps long term having a team to expand location/region.
Sounds simple but then the mind kicks in with a handful of questions which I need to figure out and with a fleet of powerfully build directors at hand why not ask the PH massive.
The idea isn’t new, and it isn’t groundbreaking but pulls on the getting paid to do something that people either don’t have the time to do themselves or simply would rather avoid.
1) How to assess the demand? – I’ve done some basic desktop research and currently there isn’t anybody within my area who offers this service but I don’t want to go through the effort of setting something up if there isn’t any demand but I also don’t want to canvas in case there are leads which I cannot meet.
2) How to fit this in around my current role – With a young family and a demanding job I do wonder how to fit this in around my current life. Perhaps a few hours per weekend or just here and there until the demand really kicks in. Evenings are a write off for the most part, perhaps visits to quote/admin but no actual work.
3) Would you charge by the hour or by the job or either depending on the requirements? I want to start small and simply and as confidence grows can then charge for additional services but for now I need to keep some control over what I say yes to.
4) How to get paid/invoice? Would a simple receipt book work for the start? For now I was thinking to create a separate account and get paid into that/cash or is it just better to make a business account from the off? Which leads me to the next Q
5) Do I start just as a one man cash in hand until I know I can make a viable go of it or does it make it easier in the future (thinking tax reasons mostly and not have Gov pull my pants down later on) to just start off properly even though it might not work? If so is it best to go sole trader or setup a ltd company?
6) Business insurance, of course things may not go right so I need something to cover me but if I am just a guy doing this to start how do I get covered?
7) Buying things – for now am I right to assume I just suck up the costs of anything extra I might need to get? It’s quite a low start up cost compared to another idea I have so I wanted to trying this first as a way to dip my toe in the water to get an idea if I can do this or if it just isn’t something for me.
TL:DR – want to setup a business but unsure of the right way to set up, possibly overthinking and just need to start and see what happens?
Overall my plan is to try to grow something alongside my current job with a view to eventually leaving and doing it full time. Perhaps long term having a team to expand location/region.
Sounds simple but then the mind kicks in with a handful of questions which I need to figure out and with a fleet of powerfully build directors at hand why not ask the PH massive.
The idea isn’t new, and it isn’t groundbreaking but pulls on the getting paid to do something that people either don’t have the time to do themselves or simply would rather avoid.
1) How to assess the demand? – I’ve done some basic desktop research and currently there isn’t anybody within my area who offers this service but I don’t want to go through the effort of setting something up if there isn’t any demand but I also don’t want to canvas in case there are leads which I cannot meet.
2) How to fit this in around my current role – With a young family and a demanding job I do wonder how to fit this in around my current life. Perhaps a few hours per weekend or just here and there until the demand really kicks in. Evenings are a write off for the most part, perhaps visits to quote/admin but no actual work.
3) Would you charge by the hour or by the job or either depending on the requirements? I want to start small and simply and as confidence grows can then charge for additional services but for now I need to keep some control over what I say yes to.
4) How to get paid/invoice? Would a simple receipt book work for the start? For now I was thinking to create a separate account and get paid into that/cash or is it just better to make a business account from the off? Which leads me to the next Q
5) Do I start just as a one man cash in hand until I know I can make a viable go of it or does it make it easier in the future (thinking tax reasons mostly and not have Gov pull my pants down later on) to just start off properly even though it might not work? If so is it best to go sole trader or setup a ltd company?
6) Business insurance, of course things may not go right so I need something to cover me but if I am just a guy doing this to start how do I get covered?
7) Buying things – for now am I right to assume I just suck up the costs of anything extra I might need to get? It’s quite a low start up cost compared to another idea I have so I wanted to trying this first as a way to dip my toe in the water to get an idea if I can do this or if it just isn’t something for me.
TL:DR – want to setup a business but unsure of the right way to set up, possibly overthinking and just need to start and see what happens?
bobski1 said:
1) How to assess the demand? I ve done some basic desktop research and currently there isn t anybody within my area who offers this service but I don t want to go through the effort of setting something up if there isn t any demand but I also don t want to canvas in case there are leads which I cannot meet.
You can ask people if they want fence panels (or whatever you had in mind); it doesn't oblige you to supply them if they say yes. Sometimes the biggest breaks for a young business is when they're asked if they can do something they haven't done before. For my grandfather it was 'Can you move a castle?' Nobody else quoted, he put in a high price and got the job.bobski1 said:
2) How to fit this in around my current role With a young family and a demanding job I do wonder how to fit this in around my current life. Perhaps a few hours per weekend or just here and there until the demand really kicks in. Evenings are a write off for the most part, perhaps visits to quote/admin but no actual work.
You have to be prepared to drop everything to do the work if you get it. If you tell them 'Well I've got a day job so that's weekdays out and evenings are a write off and then I have to play with the with the children, how about March?' you may as well not bother. bobski1 said:
3) Would you charge by the hour or by the job or either depending on the requirements? I want to start small and simply and as confidence grows can then charge for additional services but for now I need to keep some control over what I say yes to.
Depends what the work is. A good way is to work out how many hours it will take, and how much you want to charge per hours, then multiply it up to give a quote (or estimate, which need not be exact). Most people want to know the bottom line. With practice you will get good at it.bobski1 said:
4) How to get paid/invoice? Would a simple receipt book work for the start? For now I was thinking to create a separate account and get paid into that/cash or is it just better to make a business account from the off?
Log every job in a book - date in, job number, when due, when paid. A separate account will keep these payments away from the domestic stuff so accounting is easier. An invoice can be as simple as a piece of paper (or more often these days a PDF) with your name and address, client's name and address, job number, client's PO number if they use them, description of the work, the amount you agreed and the credit terms. Depending on the business it may be wiser to ask for payment in advance, or a deposit, or instalments, it's up to, you da boss now, buck stops with you. Post it or e-mail it. bobski1 said:
5) Do I start just as a one man cash in hand until I know I can make a viable go of it or does it make it easier in the future (thinking tax reasons mostly and not have Gov pull my pants down later on) to just start off properly even though it might not work? If so is it best to go sole trader or setup a ltd company?
Keep overheads to a minimum. Every £1 overhead is an extra £1 you have to earn just to stand still. You can accept cash but it still needs to be recorded and declared. As you have a day job that doubtless uses up your income tax allowance everything you earn from this venture will (after any due deductions) be taxed at 20% or 40%. I was a sole trader for 30 years and it was all I needed. Others prefer a limited company; it's up to you and what you're doing.bobski1 said:
6) Business insurance, of course things may not go right so I need something to cover me but if I am just a guy doing this to start how do I get covered?
Again, it's up to you and what you plan to do. I started with PI insurance, but after 2-3 years I decided I was sufficiently competent not to mess up.bobski1 said:
7) Buying things for now am I right to assume I just suck up the costs of anything extra I might need to get? It s quite a low start up cost compared to another idea I have so I wanted to trying this first as a way to dip my toe in the water to get an idea if I can do this or if it just isn t something for me.
I would buy stuff as you need it. No point spending money on things you 'might' need. One thing you haven't mentioned is VAT. Are your customers likely to be VAT registered?Anything you buy for the business can be offset against tax, so as well as keeping a record of money in, keep a record of money out, with receipts. I used a simple cash book with columns, but no doubt these days there's some incredibly complex software you buy and use instead. Get the admin system sorted out before you start or you could end up in an awful muddle later.
bobski1 said:
TL:DR want to setup a business but unsure of the right way to set up, possibly overthinking and just need to start and see what happens?
Overthinking at this stage is no bad thing. Better to identify problems now and know how to deal with them than they surprise you later. Think of all the things that might go wrong - can you deal with them?At the end of the day a business exists to make money. Your time is already full so it's not really a hobby (which can live on breakeven or cost money). So you need to know what you're going to be doing/selling, who you're selling it to and where you're going to buy it from (unless it's just time-based of course). You also need to be ready for questions like 'But you only have red ones, can you do it in blue?' Sometimes you have to take a considered chance.
HTH!
You re probably overthinking it, but that s normal at this stage.
For context, I already run two small businesses alongside a full time job. One is a stake in a pub which largely runs itself. I do the books and very rarely cover a bar shift I plan to jack in doing the books this year. The other is newer and something I genuinely enjoy building, testing whether it's viable rather than expecting it to ever replace the day job. With a young family and bills, the security the day job offers matters. Neither business has anything to do with my qualifications or background either, I'm an engineer by trade.
Main point being, you don't need all the answers before you start. You just need to limit the downside and test whether there s demand.
On demand, desktop research only gets you so far. No one offering it locally could mean a gap or it could mean there s no market. The only way to find out is a soft test. Quiet conversations. Mentions in local groups. A simple taking bookings from X date post. You're not committing to anything and you'll learn quickly if there's interest.
Fitting it around work and family, assume it will be harder than you think. Early days are mostly admin and thinking, not doing the work. A few hours at weekends and odd bits here and there is realistic. Set boundaries early or it will creep.
It's also worth being honest that if something does start to work, the day job often becomes the limiting factor. Time and headspace more than anything. For some businesses, making it work properly eventually means going in with two feet and stepping away from paid employment. That’s not a decision to rush and it isn't right for everyone, but it’s real and worth keeping in mind.
Pricing, keep it simple. Price the job rather than the hour if you can. Clear scope. One service. One price. Say no to anything outside that until you’ve got confidence.
Getting paid, keep it clean from day one. Separate account. Basic invoicing. Cash in hand feels easy but just creates hassle later.
Structure wise, start as a sole trader and do it properly. It's simple and flexible. A limited company only makes sense once it s proven and making consistent money.
Insurance is straightforward. Public liability is usually enough to start and not expensive. Any kit costs you ll have to swallow initially. Keep spend minimal and only buy what you need for the next job, not the business you imagine in two years.
You won't get certainty upfront.
The only real way is to start small, properly, and give it a fixed trial period. Six months is sensible. Then review with actual data rather than what your head is telling you.
Worst case you learn it's not for you. Best case you build an option. That's a decent trade.
For context, I already run two small businesses alongside a full time job. One is a stake in a pub which largely runs itself. I do the books and very rarely cover a bar shift I plan to jack in doing the books this year. The other is newer and something I genuinely enjoy building, testing whether it's viable rather than expecting it to ever replace the day job. With a young family and bills, the security the day job offers matters. Neither business has anything to do with my qualifications or background either, I'm an engineer by trade.
Main point being, you don't need all the answers before you start. You just need to limit the downside and test whether there s demand.
On demand, desktop research only gets you so far. No one offering it locally could mean a gap or it could mean there s no market. The only way to find out is a soft test. Quiet conversations. Mentions in local groups. A simple taking bookings from X date post. You're not committing to anything and you'll learn quickly if there's interest.
Fitting it around work and family, assume it will be harder than you think. Early days are mostly admin and thinking, not doing the work. A few hours at weekends and odd bits here and there is realistic. Set boundaries early or it will creep.
It's also worth being honest that if something does start to work, the day job often becomes the limiting factor. Time and headspace more than anything. For some businesses, making it work properly eventually means going in with two feet and stepping away from paid employment. That’s not a decision to rush and it isn't right for everyone, but it’s real and worth keeping in mind.
Pricing, keep it simple. Price the job rather than the hour if you can. Clear scope. One service. One price. Say no to anything outside that until you’ve got confidence.
Getting paid, keep it clean from day one. Separate account. Basic invoicing. Cash in hand feels easy but just creates hassle later.
Structure wise, start as a sole trader and do it properly. It's simple and flexible. A limited company only makes sense once it s proven and making consistent money.
Insurance is straightforward. Public liability is usually enough to start and not expensive. Any kit costs you ll have to swallow initially. Keep spend minimal and only buy what you need for the next job, not the business you imagine in two years.
You won't get certainty upfront.
The only real way is to start small, properly, and give it a fixed trial period. Six months is sensible. Then review with actual data rather than what your head is telling you.
Worst case you learn it's not for you. Best case you build an option. That's a decent trade.
Edited by a311 on Tuesday 6th January 18:24
a311 said:
The only real way is to start small, properly, and give it a fixed trial period. Six months is sensible. Then review with actual data rather than what your head is telling you.
In general yes but it depends on the business. When I came this way I wasn't selling FMCG, it was corporate stuff that took months to conclude. From lead to order to doing the work to getting paid could be a year or more. It took me four months of sales effort to get my first work, only about £320. It wasn't until about seven months after that that I got it into the thousands, which is what I needed as I was otherwise unemployed. Good chunks of money when it came, but very unpredictable.And so, we have the machinery roughly in place. Now it's all down to what sausages the OP intends to feed through it, and then it's bashing the sales trail...
a311 said:
A limited company only makes sense once it s proven and making consistent money.
If you don't have a limited company your backside (your family's backside) will be on the line for any losses right from day one. And don't forget you'll need property liability insurances in place as well.Firstly, thanks all for the replies, glad I asked. Tried to summarise the replies below rather than quoting each person.
1) Demand
I have started to look at getting a very simple logo made, Mrs B is good at design so will help me make some digital flyers which I can start to share in a few groups and via some friends. Will see if that raises any interest
2) Workload
Discussed with the Mrs B and got an idea on how to carve out some time, initially it will depend on demand if there is loads and there is some money to be made then it’ll be easier to carve out more time.
3) Charging
This I am a little nervous about, I have a rough idea how long but won’t know until I actually start. I will log the jobs properly so I can use that data going forward to quote, perhaps even have a little database for people to select and build their own quote online (idea!). Because of the lack of experience in how long things will take, I thought I could start with by the hour and it seems others who do this elsewhere also charge this way.
I can’t see an issue if I give an hourly rate and estimate total hours to give a number with the caveat things may change or things can happen. As long as I’m not faffing about taking the p*ss on the job and taking longer than it should.
4) Pay
Great idea on the log book to track work. I can make a template to invoice and just keep track of the quotations that way. Opening an account is so simple these days it just makes sense to have it separate. One thing I didn’t think about was working with businesses so thanks for mentioning that. It does lead down the path of being more an official ltd company rather than somebody doing it on the side, perhaps this will come a little later.
Customers who are VAT registered, why does this matter and what impact does this have?
5) Structure
How do I setup a sole trader? Are there any issues if I start as this and transition to a ltd company later? I don’t think I will be making consistent money from the start, couple of jobs a month at the most.
I’m unsure if there are any risk to family security starting as sole trader, if things pick up and there are big numbers involved then certainly can look to move to a ltd company then for the security and protection but isn’t that what insurance is for?
I am worried about the extra tax and if after tax it will even be worth it, although that is only because my day job takes all my allowance. Again if things pickup then I will have to get a book keeper or accountant to help with things.
6) Insurance
What’s the difference between public liability and properly liability? Are they the same or do I need both?
I was under the impression public liability was all I needed in case of damage to others whilst I was working, like hitting a pipe or breaking a window or something like that?
Any good feedback on providers or early companies?
7) Tools
I like the comment of only buying for the next job very easy to get carried away with buying new tools! Thinking through what I have I think there are probably only 3 things I would need to buy plus some consumables which I can always make use of at home so the spend to get started is low.
One thing which I do think I’d need to address later is transport and making sure I am not burning all my money away on fuel using my daily to get around.
I will keep a record of everything I buy via receipts and likely use the same book/diary for logging invoices/jobs
8) Brain stuff
I know I am overthinking some of it but I don’t mind it, cannot afford to risk security of myself/family and things can spiral out of control if you aren’t prepared.
Certainly, this idea isn’t a hobby which might turn into something going into this 100% as a business with a view to make money and to have some more flexibility in life.
There are other ideas which I have which fit into the hobby category but given the low start up cost and speed which I can start it up. The hobby to business has a steeper learning curve, and as said can break even or cost money.
As a service I know there will be always questions for more but I will have to be fairly strict with what I can offer due to time, again if the demand increases then I would have to make the time for it as long as it earns enough
1) Demand
I have started to look at getting a very simple logo made, Mrs B is good at design so will help me make some digital flyers which I can start to share in a few groups and via some friends. Will see if that raises any interest
2) Workload
Discussed with the Mrs B and got an idea on how to carve out some time, initially it will depend on demand if there is loads and there is some money to be made then it’ll be easier to carve out more time.
3) Charging
This I am a little nervous about, I have a rough idea how long but won’t know until I actually start. I will log the jobs properly so I can use that data going forward to quote, perhaps even have a little database for people to select and build their own quote online (idea!). Because of the lack of experience in how long things will take, I thought I could start with by the hour and it seems others who do this elsewhere also charge this way.
I can’t see an issue if I give an hourly rate and estimate total hours to give a number with the caveat things may change or things can happen. As long as I’m not faffing about taking the p*ss on the job and taking longer than it should.
4) Pay
Great idea on the log book to track work. I can make a template to invoice and just keep track of the quotations that way. Opening an account is so simple these days it just makes sense to have it separate. One thing I didn’t think about was working with businesses so thanks for mentioning that. It does lead down the path of being more an official ltd company rather than somebody doing it on the side, perhaps this will come a little later.
Customers who are VAT registered, why does this matter and what impact does this have?
5) Structure
How do I setup a sole trader? Are there any issues if I start as this and transition to a ltd company later? I don’t think I will be making consistent money from the start, couple of jobs a month at the most.
I’m unsure if there are any risk to family security starting as sole trader, if things pick up and there are big numbers involved then certainly can look to move to a ltd company then for the security and protection but isn’t that what insurance is for?
I am worried about the extra tax and if after tax it will even be worth it, although that is only because my day job takes all my allowance. Again if things pickup then I will have to get a book keeper or accountant to help with things.
6) Insurance
What’s the difference between public liability and properly liability? Are they the same or do I need both?
I was under the impression public liability was all I needed in case of damage to others whilst I was working, like hitting a pipe or breaking a window or something like that?
Any good feedback on providers or early companies?
7) Tools
I like the comment of only buying for the next job very easy to get carried away with buying new tools! Thinking through what I have I think there are probably only 3 things I would need to buy plus some consumables which I can always make use of at home so the spend to get started is low.
One thing which I do think I’d need to address later is transport and making sure I am not burning all my money away on fuel using my daily to get around.
I will keep a record of everything I buy via receipts and likely use the same book/diary for logging invoices/jobs
8) Brain stuff
I know I am overthinking some of it but I don’t mind it, cannot afford to risk security of myself/family and things can spiral out of control if you aren’t prepared.
Certainly, this idea isn’t a hobby which might turn into something going into this 100% as a business with a view to make money and to have some more flexibility in life.
There are other ideas which I have which fit into the hobby category but given the low start up cost and speed which I can start it up. The hobby to business has a steeper learning curve, and as said can break even or cost money.
As a service I know there will be always questions for more but I will have to be fairly strict with what I can offer due to time, again if the demand increases then I would have to make the time for it as long as it earns enough
What is the idea OP? If you don't have the confidence in it to state it might not be that good an idea, and you'll potentially miss out on useful feedback. It's unlikely someone is going to steal it and if such a low barrier to entry that is another potential issue. Your choice of course but this can be a great platform for reaching people with wide experience and maybe someone has done exactly what you want to do.
Well done Bob!
If you sell to Business and sell bought-in products/services, register for VAT. Businesses are invariably also VAT registered so they will reclaim the VAT you charge them. In fact not being VAT registered in that context can make you look a bit amateur. Secondly and more importantly, you can reclaim the VAT on everything you buy in for the business (either for that specific job or for office supplies etc) - so you will save a huge amount.
For the other variables, ie selling bought-in services to Joe Public, or charging only time to Business, you'll have to see how it shakes out.
If you decide it's beneficial for you to be VAT registered, you can do this voluntarily (as opposed to reaching the threshold of £90K turnover which seems unlikely).
1) You're contracted to run a conference. On the day the microphones don't work and the conference is a disaster. Maybe you can get away by not charging them - but you may have suppliers to pay and if they provided the staging and the staging was good then you have to pay them. What with?
Worse, the client may say 'That duff conference lost us £1M in new business' and sue you. That I would say is where insurance comes in! It also covers a very good adage 'Always have a back-up'.
2) You're doing large projects and have rung up a bill of £100K with your suppliers. But then your client goes bust and never pays you. You still have to pay the suppliers £100K. If you're a sole trader you're on the hook. If you're a limited company the theory is that you wind it up and start again. But your old unpaid suppliers will hate you and you'll have to find new ones. And being a company director brings a whole extra set of responsibilities.
Buying stuff in and reselling it in whatever way is easy profit, but carries risks as you can see. It does however remove the ceiling of what you can earn just by charging for time.
ked up.
bobski1 said:
1) Demand
I have started to look at getting a very simple logo made, Mrs B is good at design so will help me make some digital flyers which I can start to share in a few groups and via some friends. Will see if that raises any interest
Actually two things there - you've added 'corporate image' which in my view is very important for initial credibility. Consider a website too so people can find out more about your services, photos etc.I have started to look at getting a very simple logo made, Mrs B is good at design so will help me make some digital flyers which I can start to share in a few groups and via some friends. Will see if that raises any interest
bobski1 said:
3) Charging
This I am a little nervous about, I have a rough idea how long but won t know until I actually start. I will log the jobs properly so I can use that data going forward to quote, perhaps even have a little database for people to select and build their own quote online (idea!). Because of the lack of experience in how long things will take, I thought I could start with by the hour and it seems others who do this elsewhere also charge this way.
See what the competition charge. Then you can either be a bit cheaper, or add something extra that will appeal but costs you little or nothing.This I am a little nervous about, I have a rough idea how long but won t know until I actually start. I will log the jobs properly so I can use that data going forward to quote, perhaps even have a little database for people to select and build their own quote online (idea!). Because of the lack of experience in how long things will take, I thought I could start with by the hour and it seems others who do this elsewhere also charge this way.
bobski1 said:
I can t see an issue if I give an hourly rate and estimate total hours to give a number with the caveat things may change or things can happen. As long as I m not faffing about taking the p*ss on the job and taking longer than it should.
Seems fair.bobski1 said:
4) One thing I didn t think about was working with businesses so thanks for mentioning that. It does lead down the path of being more an official ltd company rather than somebody doing it on the side, perhaps this will come a little later.
Not necessarily. There are some companies that will only work with limited companies, I've never figured out why as limited companies can go bust overnight. I was essentially one bloke and a dining table but my customers were medium and large companies. It worked because I had an excellent network of trusted suppliers and so I could do almost anything just by engaging the right supplier. I worked on a daily or half-day rate and made a margin on everything bought in too. In fact that's where most of the profit eventually came from. And this is where we come on to VAT and who your customers are.bobski1 said:
Customers who are VAT registered, why does this matter and what impact does this have?
If you sell to Joe Public and only sell your time, don't register for VAT - all it does is put your price up 20%, making you less competitive, and add complexity.If you sell to Business and sell bought-in products/services, register for VAT. Businesses are invariably also VAT registered so they will reclaim the VAT you charge them. In fact not being VAT registered in that context can make you look a bit amateur. Secondly and more importantly, you can reclaim the VAT on everything you buy in for the business (either for that specific job or for office supplies etc) - so you will save a huge amount.
For the other variables, ie selling bought-in services to Joe Public, or charging only time to Business, you'll have to see how it shakes out.
If you decide it's beneficial for you to be VAT registered, you can do this voluntarily (as opposed to reaching the threshold of £90K turnover which seems unlikely).
bobski1 said:
5) Structure
How do I setup a sole trader? Are there any issues if I start as this and transition to a ltd company later? I don t think I will be making consistent money from the start, couple of jobs a month at the most.
Check with someone like Panamax but essentially you just contact HMRC and tell them 'I'm trading from X date'. Suggest you find a bookkeeper or friendly accountant to help get the groundwork right. You'll need to complete a self-assessment form once a year and pay any tax due when required. With various allowances, write-downs and stuff I don't fully understand, you can retain more money by seeking advice.How do I setup a sole trader? Are there any issues if I start as this and transition to a ltd company later? I don t think I will be making consistent money from the start, couple of jobs a month at the most.
bobski1 said:
I m unsure if there are any risk to family security starting as sole trader, if things pick up and there are big numbers involved then certainly can look to move to a ltd company then for the security and protection but isn t that what insurance is for?
I can only make general comments because 'YMMV' but think it's a matter of competence and credit control. I see it in two ways:1) You're contracted to run a conference. On the day the microphones don't work and the conference is a disaster. Maybe you can get away by not charging them - but you may have suppliers to pay and if they provided the staging and the staging was good then you have to pay them. What with?
Worse, the client may say 'That duff conference lost us £1M in new business' and sue you. That I would say is where insurance comes in! It also covers a very good adage 'Always have a back-up'.
2) You're doing large projects and have rung up a bill of £100K with your suppliers. But then your client goes bust and never pays you. You still have to pay the suppliers £100K. If you're a sole trader you're on the hook. If you're a limited company the theory is that you wind it up and start again. But your old unpaid suppliers will hate you and you'll have to find new ones. And being a company director brings a whole extra set of responsibilities.
Buying stuff in and reselling it in whatever way is easy profit, but carries risks as you can see. It does however remove the ceiling of what you can earn just by charging for time.
bobski1 said:
6) Insurance
What s the difference between public liability and properly liability? Are they the same or do I need both?
Not my expertise but in simple terms public liability (PL) is when somebody hurts themselves by falling over something you left in the way. You can have it for home and/or for working away. My guess is that 'property liability' is the former. There is also professional indemnity (PI) insurance which is what you'd claim on in the case of the conference above. You were supposed to be a professional but you fWhat s the difference between public liability and properly liability? Are they the same or do I need both?
ked up.bobski1 said:
One thing which I do think I d need to address later is transport and making sure I am not burning all my money away on fuel using my daily to get around.
As a sole trader you can claim a percentage of all motoring costs from the business. Consider what proportion of your mileage is for business as opposed to private. Say it's 50%. Then 50% of fuel, VED, MOT, servicing etc can be used. The cost of your car can also be brought into the business and written down against tax - but here I'm getting close to my limits so check the current rules.bobski1 said:
8) Brain stuff
I know I am overthinking some of it but I don t mind it, cannot afford to risk security of myself/family and things can spiral out of control if you aren t prepared.
Absolutely. You'll need to be competent at marketing, sales, project management, customer services and record keeping - when it all links together it's most rewarding (mentally and hopefully financially too).I know I am overthinking some of it but I don t mind it, cannot afford to risk security of myself/family and things can spiral out of control if you aren t prepared.
I'm finding this thread quite triggering for some reason. But anyway, to give my thoughts, I just don't think it's worth thinking about tax and admin until you've validated the idea. Whether or not a VAT registration or limited company makes sense will vary depending on the specific business idea . So best to rule out this idea first and so you can quickly iterate to the next idea.
I think a website is a great idea that will enable you to pitch it to friends and also throw some paid ads at it. You can just have a contact form. You don't even need to reply to the submissions if you don't want to. There's a very, very low commitment or risk involved. Plenty of companies hide their pricing as well until quite late in the process, so I wouldn't lose too much sleep over that.
Insurance and the ability to operate as a sole trader will also depend on the business idea, so again I would validate the idea first, because even if you know already that the current idea requires insurance or a limited company, then the next idea might not. So just get on with the validation first.
I think a website is a great idea that will enable you to pitch it to friends and also throw some paid ads at it. You can just have a contact form. You don't even need to reply to the submissions if you don't want to. There's a very, very low commitment or risk involved. Plenty of companies hide their pricing as well until quite late in the process, so I wouldn't lose too much sleep over that.
Insurance and the ability to operate as a sole trader will also depend on the business idea, so again I would validate the idea first, because even if you know already that the current idea requires insurance or a limited company, then the next idea might not. So just get on with the validation first.
bobski1 said:
The idea isn t new, and it isn t groundbreaking but pulls on the getting paid to do something that people either don t have the time to do themselves or simply would rather avoid.
So its a local domestic service type operation? I would promote the idea on Next Door. I'm a BTL landlord and its where I try to source trades other than my regular Plumber and Electrician. It tends to be small operations who are reasonably priced.When we needed a gardener to do some weeding at my elderly mothers a local woman was advertising and was swamped with requests. After a single morning she stopped taking bookings. We were the last to get a regular slot. She was ludicrously cheap (we pay her more than she asked for) and is a proper horticulturalist, not a guy with a lawnmower and a van. I recently tried to book a decorator and was given a 4-6 month lead in time!
If you're offering a service people want to pay for, its a simple way to test the market.
If its not a unique service then post what it is. You'll get better more focused advice, especially on the pitfalls.
Edited by 98elise on Wednesday 7th January 13:44
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