New business questions

[EFCLee1]

Does anyone know of a good website that outlines the first steps to starting a new business

I know companies house is were u register your company how much is that and do you need a business bank account or can you invoice customers and be paid into a current account

Oh and, painting will be my thing, starting with residential

Any info would be amazing

 

[seco services]

Are you going to be a ltd company ?

 

[EFCLee1]

I would guess YES, is that better

I do know that a LTD company needs 2 directors, and to open a business account the directors are credit checked, so if I am going to fail a credit check does this mean I cannot be a director of my company?

 

[conny]

I would imagine first step would be to draw up a business plan.
What you intend to do, how you will finance it, how you will advertise it, how much you expect to gain/lose during the first 2 years, how you will manage your expenses during this time, list of suppliers willing to extend you credit during this time and at what rate etc.
There is a lot to do before you even consider setting up in business.
Contact the DW&P for advice/booklets etc and HMRC also.
Have you researched the area where you will be working to ensure there is a need for this type of business?
Will you be encroaching on any established business sites?
A lot to consider, as I said.

 

[oasistechnical]

you don't now need two directors, you can register as one director/secretary.
but i would advise that you do have two directors

VAT?
talk to HMRC as well, they will offer advice on what you need to do in regard to PAYE etc

and get yourself a damb good accountant!
Insurance is also a must, DO NOT TRADE without it,
we sue AXA for our business and we have found them to be very very competative and very helpful, (monthly payments allowed as well, helps cash flow)

and as has been posted above,
business plan
business bank account
registered office, you could ask your accountant to have your firm registered there,
credit control can also be done via a good accountant, but you will pay extra for this
accounts with suppliers, your personal credit history will come into question,
directors gaurentees as well on all over drafts and or loans,
DO NOT put you house as surety!!


are you going to employ staff?
if you are that will increase your outgoings as you are responsible (the company0 for TAX / NIC and now pension payments!!!

any thing else you want to know, ask.

Oasis
company director and business man!!! for over 20 years, god i would get less time for murder!!!!

and be aware it ain't easy, in any way shape of form

 

[LooPrEvil]

Good luck Lee with your venture.

 

[Alarm]

Yeah, good luck.
Make sure you have public liability insurance and employee.



Oasis, my little m8. You sue AXA?

 

[Mw Roofline]

For now just set up as a sole trader at your home address, get yourself a name and get a sole trader business account (Cheques will be Lee trading as Lee's Paiting). Get some insurance.

Do some advertising and see what feedback you get, once you get a few jobs under your belt then ask yourself is it going to work regularly and then think about ltd and a business plan.

It's all very good drawing up a business plan and organising directors, secretarys and accountants but you need to do a test run to make sure the work is actually there. If there are 20 painters in your square mile then you may have to target other areas to get work.

 

[merlin50]

I have had my own business most of my life. always keep things small, no need to be a ltd company, avoid VAT as long as you can. if the business name is your name you can pay the cheques into your account. business accounts cost money and a business cheque is a worthless pice of paper. you will need advice from an accountant before you start.

 

[Space cat]

DO NOT put you house as surety!!

Redoubled in No Trumps!

From way back in the sixties, probably in a 'minor studies' (aka filler-in) lesson at school, one thing seems to have stuck in my head: Have your capital and be prepared to lose it.

That still sounds like good advice. Earmark the money you can afford to put into your new business and stick to it. With luck - and a lot of hard work - you'll make a profit but, if it all goes t*ts up, don't pour good money after bad.

Here's something else you ought to think about. Do you have a plan B? What will you live on if there's no profit? If you're presently unemployed the question is largely academic because you've not much to lose. But if you have a decent job, think carefully before you give it up. Can you work part time while you test the water?

 

[EFCLee1]

Would i still be able to invoice as a sole trader, would it be more fitting for corporate work if i was a LTD company

dont mind either way because if my credit score will be too low to open a business account I can simply have a relative do it and that same relative can be a director of the company, well thats my thoughts anyway


@ conny
financed ? "a van and a brush", similar to my poker motto "chip and a chair"

advertised, word of mouth when done a few jobs not always guaranteed, yellow pages cost unknown will find out, thompson local again cost unknown will find out, websites facebook big sign on van etc.....constant advertising would be a good idea, being reccomended by other tradesmen who I know

initally I would have no set amount to earn would be as many jobs as I can fit in, managing expenses will have to suck and see this is new to me but I can imagine keeping as much aside as possible would help

research an area, well to be honest I will not have an area, the entire North West if my advertising budget will suffice that will be my biggest constraint because I wont have a lot to spend on it so slow start will be more likely

encroaching on any established business sites, I dont know how I could be seeing as I am not targeting 1 specific area, dont all companies get at leat 3-5 quotes when they are spending over a certain amount for a paint job? so this makes it an even playing field imo

 

[EFCLee1]

@oasistechnical


PAYE is that for me or if I end up having staff?

accountant, hmm my sister is some way into an accountant course so that might be a bonus but failing that I would be doing it myself learning curve for sure, certainly no funds to pay an accountant not at an early stage

insurance. is that for me if I fall off a ladder? or if I drop a tin of paint onto an Audi TT, or if I spend £1000 on supplies for a job that goes ti ts up to wack in a claim for lost money?

business bank account, that might be a problem as I posted above regarding credit checks, but I could line up 2 other people to be directors and the business account is in there name, not sure if that will work

registered office, why do I need an office, can I use my current home as the registered office for a LTD company? its not like I wil be trading from it like selling wham bars! lol

employ staff, no just a one man band starting small focusing on residentail interior exterior, would this be a negative factor when quoting time scale as 2 men will halve the time?

 

[EFCLee1]

@Mw Roofline


sole trader, can this still get me trade prices at BnQ or screwfix?

If there are 20 painters in your square mile, then I would move onto a different square mile, if advertising gets no business I will evaluate if the advertising was sufficiant, move to another area as you said I would travel the entire North West

 

[EFCLee1]

@merlin50


keep it small I agree but I have no option because my tool are very limited no van yet so I need to sort that out ladders etc....

would prefer my company to have a name that is not my name so does this mean I have no option but to be LTD

any idea what the running cost of a business account per year?

a business cheque? are you saying dont get paid with a business cheque? If I do a job for a company I would have to invoice them if its residential that would be cash in hand, lot to learn I know

sadly no accountant, will try to pick up as much info along the way and do this myself that way I keep costs down

 

[EFCLee1]

@Space cat


No plan B, will live on JSA if no work comes in and declare all to them, not sure if its as simple as that but I would rather not sign off and do 1 days work in 4 weeks

Coming from IT were there is nothing doing for me, I am too far down the Level 2 support to be snapped up, wasnt like this before the recession, I went from 1 contract to the next for about 2 years with 2-3 weeks inbetween sometimes even no gap and now 6 months unemployed this is due to car fault from Dec-Mar, and then Mar-May was promised a contract with HMRC which didnt transpire into anything so theres 6 frickin months unemplyed - gutted!!