small business help

A question about : small business help

Hi

I am a regular poster but wanted some advice , and I worry who can see this! Basically I am obviously in debt as is my husband around 8k between us. My husband works fulltime in ICT, he is on a very low wage considering his hours/ skill and experience. I am not the only person who thinks this, however he cannot ask for a rise at the moment and hasnt had one for 2/3 years. I think he could do this on his own, in order for him to earn what he does now he would need to make 50 per day. I was thinking of doing this part time to start of with, distributing leaflets, getting a new number and paying for new top with business name ect. I could post this round most nights for an hour ( I would do these very cheaply on my own comp). However he is concerned that if found out his job would be at risk - however he would not be poaching any current customers or even telling them. He would be finding his own ect. I thought he could do this for a while to build up himself with the stability of an income aswell. He could then think about going it alone in the future if all goes well.

Where do we get started with regards to TAX/VAT registering a new company ect? Does anyone have any ideas? Also do you think this is a good idea? Or would you to be concerned with losing current job.

Best answers:

• He may find it difficult to get a bank account if he has so much debt. As for setting up a business then initially set up as a sole trader and register with the HMRC so that he can pay tax and class 2 NI. No need to fret about VAT as you are well under the threshold.
  If your OH wants to set up a business in the same line of work as his employer then he may not be allowed to according to his contract because his employer could view him as poaching clients even though he claims that he isn't.
  It will cost some money to get a logo, printed stationery and a website which are necessary for businesses these days. Be prepared for long days and nights because customers don't fall off trees and it takes time to build up a client base - I myself have been in business for 2 years and have only just started getting clients and I know people in the ICT business who have had similar experiences so don't expect clients to be there straight away because they won't be.
  First of all, I would advise that he speaks to Business Link or the Scottish equivalent (depending on whether or not you are in Scotland), also speak to the Chamber of Commerce as they will often run free courses on how to set up a business. After taking such courses only then will he know if self employment is right for him.
• Hi again,
  the debt is between us - we already have bank accounts, would we need to set up an official business account?
  I have a member in my family who is very savvy at business and he is on call for advice ect, of course I understand will be very hard to get clients ect but this is why I am suggestiing doing it alongside employment at the moment. However I am inclined to do this anyway even if it is frowned upon, we have no other way to make income and to help ourselfs except to use his skills which I feel are being taken advantage of at the moment as he is on a pretty rubbish wage. The downside is I am currently the confident, driving forace of us, so I think I will have to be the one to direct him and encourage him as he is pretty unconfident.
• You would need to set up a separate business account to keep your business money separate from your personal money. It is easier to keep track of your business money because you will need to pay tax and class 2 NI. It is more difficult if it is lumped into the same personal pot because it would be harder to distinguish.
  I understand that you are the driving force behind this but really your OH should be on board because he is the one who will be doing the work, if he is going into this half hearted to keep you quiet then the business will fail. I not trying to be nasty but point out hard truths because he needs to be passionate about his work - people can tell if you are not passionate and will avoid employing your services. I wasnt passionate about weddings so changed my focus to corporate events which I absolutely love organising and guess what my business is going from strength to strength when previously I had no weddings to organise and had no real interest in weddings - it showed.
  I am not saying that it is illegal to be self employed whilst being employed at the same time, I am just saying that he needs to be wary of his employer and may need to ask his employer's permission before setting up.
  In the meantime, has he tried to look for alternative work that pays more? To improve his lot at work, could he ask to attend some training courses to boost his skill set - the more qualifications he has then the more money he can earn plus it will make him look better to potential new employers.
  Again, I suggest speaking to the chamber of commerce and asking if they offer free courses to help set up a business - they usually do one on legalities, marketing, sales, business plans same goes for Business Link. The HMRC also run free courses in how to complete a self assessment tax return and they will advise what you can and cannot claim for.
  He would also need to consider insurance too such as professional indemnity and public liability especially if he intends going into people's homes to repair computers etc.
• Hi Anoon
  Quote:
• Don't forget though what he earns now as employed with work out differently when you are self employed. As employed all expenses are covered by the company he is working for. Once he is self employed expenses will come out of your own money, although will be put down to the business. You also have to pay your own tax, NI, pension etc whereas when employed your employer may pay towards your pension. There will be other overheads you haven't considered so if he earns Ј50.00 in a job as employed and that's what you need, it is likely he'll need to earn more than Ј50.00 to cover all his business costs etc.
  I also agree with the other poster that it is likely to be in his contract that he can't set up within a certain time doing the same type of work.
• If you're the one with the driving force, is there anything you could do to make money? You talk about delivering leaflets in the evenings, are there any evening / weekend jobs you could take on? Or do you have a passion that you could make money from?
• Look on jobserve.com - every IT job worth having is on there, they are the oldest and every specialist recruiter uses them. I would suggest your OH has a look at the jobs and rates, then gets talking to the specialist IT recruitment companies.
  Contract positions will require immediate starts usually, but the permie positions are all up for grabs too, and the rates will be much better than Ј50/day with a longer start date. Any experience and professional qualifications will pay off massively, so make sure he takes all the *real* (Microsoft, A+, etc - not internal) training he can grab upfront!
• Jexy - I type fast, my average typing speed is 180wpm which is the result of a life time stuck behind a typewriter in an office.
• You can go to HMRC and you will find most info there
• Learn how to spell 'advice'?
  Sorry, couldn't resist, and can't really help, but good luck!
• Sorry to pour cold water on it, but to run a successful business, you have to have that ambition. From your posts it seems that you are in the driving seat looking for any alternative to the current position.
  The UK is full of mediocre and failing businesses that, outwith the triple-dip, are the result of people launching businesses as, "a last resort".
  The viable businesses are run by enthusiastic, passionate people who live their businesses. They can take an ordinary idea to great heights, whereas time-fillers can grind down a great idea in no time flat.
  The UK needs more businesses and aspiring entrepreneurs, but not fundamentally flawed ones opened by people running away from a job. They should be running towards an opportunity.
  Be wary of paid advisers too from Business Link/Gateway (studiously avoid CoC - they just want to recruit new members!) Ask them what businesses they have set up and run. Unlikely you will find many that have. There are too many redundant bank managers, executives and corporation juniors giving, "community time" in these roles. They do not have the first idea about the motivations and drivers of successful new-starts and this is transparently obvious by their keenness to drive enquirers onto business plan/accounting/VAT courses instead of encouraging and growing the core, money-making, potential idea.
• That's really odd, my post has moved and was in reply to someone wanting to set up as an insurance broker. This isn't the thread I replied to (the post I did reply to was new....)
• This one:
  https://forums.moneysavingexpert.com/....php?t=4414609
  (kinda, there were two similar posts and I think they have been merged - badly!)