Setting Up Your Own Business

[dragonfly]

I am seriously thinking of setting up my own business and being my own boss but would like to hear from other .org members who have taken this step and what pitfalls to beware of and of course the plus side of being your own boss

All contributions greatfully received!

[Rheghead]

Have a good well written business plan which will make banks etc to take you seriously.

[Doolally]

I think that initially most important thing is to make sure you do your market research so there is a demand for what you are going to be doing/selling.

If it's something that won't make an income quickly, as most businesses are, then make sure you have money set aside to cover you the first few months and until the business is up and running properly.

[MagicalTrevor]

Do as much market research as practically possible. I.e not only speak to as many people you know but make sure (with a bit of common sense) that the market is there for the taking. Think about doing some questionnaires and definately put together a realistic and fairly pessimistic financial plan for the year. This will show just how bad things might get and if its survivable.

As someone has already said make sure you put together a good business plan so the banks take you seriously, but I can't stress enough a financial plan.

[henry20]

You need to be careful in the selection of what type of business you are opening (or thinking about) and bear in mind that a similar shop may open nearby. Ideally, you should choose something that means a lot to you as you will be more passionate about making a success of it.

I wish you every success - I too thought about opening a business, but was too chicken to take the risk. Good luck.

[dragonfly]

know for definate that there's a gap in the market as it was a business that has now folded for private reasons and although covered on one side of the county, hasn't got 100% cover on the other side.

no premises needed as I could work from home and no start up loans required as we have enough savings to get it off the ground.

Was looking a CASE website so will go and have a word with their guys about legality issues etc!

[tillygirl]

I would say definately go for it. There's nothing like being your own boss, not that I am yet. But in the next few months I will be self-employed and I'm really looking forward to it. No one telling me what to do, just dealines to meet. See it as a challenge and GO FO IT!

[Hibeechick]

I would definitely go for it if you can! A lot of hard work as im sure you already know! I don't regret starting up on my own one little bit!

[Bobinovich]

Been self-employed now since 1994 (OMG is it that long already :eek:) and it was definately the best move I ever made.

I agree with many of the comments here. It should be something you are interested in - that way you've already got the enthusiasm which is so important.

You've already sussed that working from home is the easiest way (unless it's vital to have a retail outlet) as it keeps costs down and so many of your household expenses (electricity, telephone, car, mortgage interest, etc.) can be offset against your profits. Talk to a good accountant Stuart Whiteley (http://www.caithness-business.co.uk/business.php?id=319) - he's great at explaining what you can and can't claim for and will undertake your accounts for you if you want. However I'd also recommend trying to do them yourself as it will save you a lot of money over the years.

The guy you want to speak to in CASE initially is Keith Muir - he was self-employed himself (financial advisor) so has been there and can advise on many aspects. However if you already feel there's a legality issue with your proposed idea then there probably is and, as such, it could be your biggest hurdle. My wife had such an idea and we couldn't take it any further officially without incurring massive costs so it had to be shelved.

If you'd like any help or advice I'm more than willing to help other small business start-ups so feel free to PM or e-mail me.

[MGB1979]

The bare minimum you need to do is tell HMRC that you're self-employed; they'll arrange your class 2 Nat. Ins. and send you a self assesment tax return. Like Bobinovich said, get an accountant, it might seem like an unnecessary expense at first but you'll be glad you did, book keeping is everything. A seperate business bank account is pretty important.

As well as all the practical stuff, you have to be honest with yourself about your personality and abilities.

Successful businesses are run by people who are highly driven, dedicated, pragmatic and often ruthless. There is a huge range of skills and attributes you'll need and if you don't tick all the boxes you might regret ever starting up.

Running a business isn't just about earning enough to pay the bills, you need to think about what you can do to grow your company every single day, even Sunday. You need to have a plan for the next 4-5 years (which will constantly change), set goals and work towards them, never be content with how things are because as soon as you stand still you die.

You need to be prepared to sacrifice a lot, particularly your social life, if you don't want to be slogging away for a pittance for the rest of your life. I mean, we all love the idea about being our own boss, but the ultimate goal is to be the boss.

[Bobinovich]

I wouldn't agree with all of MGB1979's post.

Firstly I don't believe that you have to have all the necessary attributes prior to starting up - simply that you are willing to learn and adapt as quickly as required.

That goes for your business too - you will find that your initial ideas develop as the markets change, you need to forsee changes and might have to regularly move your goalposts and adapt your supplies/services appropriately.

Secondly I'd also say that ruthlessness in a small local environment can work against you - be firm yet fair and you should find that you build a sizeable and loyal customer base.

The almighty buck is not the be-all and end-all. Yes when I first started I worked all hours that I could to build up the reputation of the business. But as time has gone on I have weighed up the hours I NEED to work to ensure a sufficient income, and how much I WANT to work to enable me to spend quality time with my young family. I've found the latter to be much more important at their current age but, as they get older and more independent, will probably increase my hours back up again.

[bigjjuk]

Agree with the above post big time, apart from one, the accountant, is only necessary when you really need one. I took an accountant on form the start in my businees in London and he did things which i could have done myself and thus incurred a cost that i didnt need to do. Once established a bit then go for the accountant as they do know loop holes to saving you more money. Bare in mind that if you are working from home, your household bills can be charged against your business thus saing you money as its all tax deductable. If you are planning on earning buckets look into the VAT side of things. You are allowed to earn a certain amount before you have to be VAT registered. I think its about 64,000 pounds.

[Cedric Farthsbottom III]

Always wanted to go into the illustration business for books.Not had the cahonnies to do it yet!!Always say to masel' .....one day!!!!So dragonfly to answer yer thread if yer business is gonna be a hit....go for it!!!!

I'll join you as a self-styled millionaire in a few years time!!!:D

[jaykay]

I think that initially most important thing is to make sure you do your market research so there is a demand for what you are going to be doing/selling.

If it's something that won't make an income quickly, as most businesses are, then make sure you have money set aside to cover you the first few months and until the business is up and running properly.

Good advice.
When I started in business I made sure I had enough money to pay my wages for the first year. Even then it was pretty difficult as there are all sorts of pitfalls. Cash flow was one of the worst problems because although I was working flat out I had to buy materials and pay for them before I could get paid by the customers. Some customers took a while to pay and this of course gave me cash flow problems. At its worst this can put you out of business.
If the business you are thinking about going into involves buying materials/parts be very careful!!
It is easy to get the work!! Getting paid for it is another matter!!

[webmannie]

Start up timing is also important, if it is Business to Business (B2B) Don't start up in December or January, businesses aren't in spend mode then. You'll get a lot of 'I'll think about it after i get Christmas and New Year out of the road'.
That is because it is also a slow time for them and it affects their cash flow as well.