Help needed in setting up a business
Discussion
In the next few weeks, I will be going through the agro of setting up a business of my own 
Just wanted a few pointers of what to look out for, possible pitfalls and hints and tips that any of you could offer. Please do keep info down to clear and simple language however, as I don't want to get confused with all the legalities.
Any comprehensive websites I should direct my attention to?
Oh, business will be a Limited partnership, does this affect anything at all?
Thanks to all concerned
Raks
Just wanted a few pointers of what to look out for, possible pitfalls and hints and tips that any of you could offer. Please do keep info down to clear and simple language however, as I don't want to get confused with all the legalities.
Any comprehensive websites I should direct my attention to?
Oh, business will be a Limited partnership, does this affect anything at all?
Thanks to all concerned
Raks
covers most things!: www.businesslink.org/cgi-bin/bv1/home_page.jsp
but do they cover everything? My latest two companies I set up myself for about £30.
Just get a copy of memoradum and articles, amend it to your needs and fill out forms 10 and 12. Go to a commissioner for oaths, (£5) and pay companies house fee.
Check that the company name is not taken first though!!
This all assumes you have satisfied needs in terms of directors, secretaries, registered office etc...
Just get a copy of memoradum and articles, amend it to your needs and fill out forms 10 and 12. Go to a commissioner for oaths, (£5) and pay companies house fee.
Check that the company name is not taken first though!!
This all assumes you have satisfied needs in terms of directors, secretaries, registered office etc...
Hey Ninja, Hows things goin'? 355 running as sweetly as it sounded on the eve we all went out?
Hmmm, see your point of view, but I know you've had plenty of experience of this, so I think I should stick to speaking to a solicitor or accountant, so not to seriously mess things up.
Probably best to do this in Leic. as thats where the registered office would be (AKA my house!). Going rate people in the E.Midlands?
Hmmm, see your point of view, but I know you've had plenty of experience of this, so I think I should stick to speaking to a solicitor or accountant, so not to seriously mess things up.
Probably best to do this in Leic. as thats where the registered office would be (AKA my house!
). Going rate people in the E.Midlands?Raks - Apart from actually finding enough work to get you going and sustaining the business, cashflow is by far the biggest enemy.
You can be invoicing thousands a week, but until it starts rolling in your struggle. And remember, those 30-day terms you thought you had agreed ..... better make that 60 if your dealing with a well sorted large company. 90 days if there un-organised and 120 to 150 if their to$$ers.
Thats when you find out how Marcell Wallis felt in Pulp Fiction when bent over the table!
Best of luck mate and don't let the bastewards grind you down.
Paul
You can be invoicing thousands a week, but until it starts rolling in your struggle. And remember, those 30-day terms you thought you had agreed ..... better make that 60 if your dealing with a well sorted large company. 90 days if there un-organised and 120 to 150 if their to$$ers.
Thats when you find out how Marcell Wallis felt in Pulp Fiction when bent over the table!
Best of luck mate and don't let the bastewards grind you down.
Paul
Very true.
I was delighted to do business with someone this week who believes in paying his invoices when he receives them. Whilst it does of course cost him somewhere between one and three months cashflow to maintain that situation, he and his staff don't waste time bullshitting suppliers about cheques in the post etc. They get on with their day jobs instead. A very refreshing attitude!
So pleasing in fact that here's a plug
www.verdiferrari.biz
I was delighted to do business with someone this week who believes in paying his invoices when he receives them. Whilst it does of course cost him somewhere between one and three months cashflow to maintain that situation, he and his staff don't waste time bullshitting suppliers about cheques in the post etc. They get on with their day jobs instead. A very refreshing attitude!
So pleasing in fact that here's a plug
www.verdiferrari.biz
Hey there Ted, you sure you're allowed to advertise like that!??!? 
In terms of the invoicing, things are good because for the terms applied for the way we shall be conducting is that payments are made via CHAPS, ie. directly and also goods cannot be released until its reached. Goods are also liable once a authorisation is received from the supplier/purchaser, if money is not deposited. So, protected really. Well, its worked for me elsewhere, and in theory too....
In terms of the invoicing, things are good because for the terms applied for the way we shall be conducting is that payments are made via CHAPS, ie. directly and also goods cannot be released until its reached. Goods are also liable once a authorisation is received from the supplier/purchaser, if money is not deposited. So, protected really. Well, its worked for me elsewhere, and in theory too....
If you are setting up an LLP, I wouldn't bother seeing a solicitor but do recommend seeing an accountant for advice on keeping records and how you should record, pay and keep your taxes.
LLP piss easy. £95 quid down companies house... thank you very much
As for general hints and tips. Work hard When we started our business it was very easy for us to piss about thinking work will come our way soon. But like I said before, never give up.
Also never underestimate the power of PR and marketing and overall running costs of running a company.
>> Edited by Hates_ on Tuesday 20th May 23:43
LLP piss easy. £95 quid down companies house... thank you very much
As for general hints and tips. Work hard
When we started our business it was very easy for us to piss about thinking work will come our way soon. But like I said before, never give up. Also never underestimate the power of PR and marketing and overall running costs of running a company.
>> Edited by Hates_ on Tuesday 20th May 23:43
I'd agree with most of this.
Firstly I'd say get a good accountant, they can sort out setting the company up for you and that should cost you not more than £150.
Nextly cashflow, this is the killer. We are lucky we know our customers pretty well so we know who pays on time and who we have to chase, we factor all this in when costing stuff and invoicing (you can use bad payers to smooth cashflow in some instances).
Next. Although you will have to at first try not to do everything your self. We were very guilty of this and the business suffered. Concentrate on the core business and outsource as much as you can when you can.
If you take anyone on get good HR advice.
Lastly, try not to let the fact that you seem to be constantly paying moey to the govt get youdown
D.
Firstly I'd say get a good accountant, they can sort out setting the company up for you and that should cost you not more than £150.
Nextly cashflow, this is the killer. We are lucky we know our customers pretty well so we know who pays on time and who we have to chase, we factor all this in when costing stuff and invoicing (you can use bad payers to smooth cashflow in some instances).
Next. Although you will have to at first try not to do everything your self. We were very guilty of this and the business suffered. Concentrate on the core business and outsource as much as you can when you can.
If you take anyone on get good HR advice.
Lastly, try not to let the fact that you seem to be constantly paying moey to the govt get youdown
D.
Raks said: Hey Ninja, Hows things goin'? 355 running as sweetly as it sounded on the eve we all went out?
Hmmm, see your point of view, but I know you've had plenty of experience of this, so I think I should stick to speaking to a solicitor or accountant, so not to seriously mess things up.
Probably best to do this in Leic. as thats where the registered office would be (AKA my house!
The 355 is sounding even better with more miles added, thanks!!
Yes, I'd agree with you, a lot less headache to use an accountant to open the company, IMO they are more use to you than a solicitor and know the law in this area just as well.
I only did this route to find out how these "company formation" companies made their money, so now I know
I've even done one off shore now, and it saved me over £300!! Quite a saving, and would make an interesting new business for me...
Good luck with the new start up, the beginning can be hard, but the rewards later CAN be worth it. Will the PH massive also be visiting a "Raks" bar or club sometime soon?
Hi there guys,
Thanks for all the input so far. You've all been really helpful
With regards to the legal malarky; I agree with the suggestions of using an accountant as after doing a degree in the subject, I know how varied we are. Solicitors get paid too much anyway!
Ninja: Hmmm, you've seen my other post huh? Yeh, looking into conducting a joint venture also, in the shape of a bar around SE.Eng. Looking hard, but finding it difficult to find the one I want. So decided there is no time like the present to start my other venture, so am looking deep and hard into the formalities linked.
Now all i need is a cute female accountant, and the world is my oyster!
Thanks for all the input so far. You've all been really helpful
With regards to the legal malarky; I agree with the suggestions of using an accountant as after doing a degree in the subject, I know how varied we are. Solicitors get paid too much anyway!
Ninja: Hmmm, you've seen my other post huh? Yeh, looking into conducting a joint venture also, in the shape of a bar around SE.Eng. Looking hard, but finding it difficult to find the one I want. So decided there is no time like the present to start my other venture, so am looking deep and hard into the formalities linked.
Now all i need is a cute female accountant, and the world is my oyster!
In addition to the accountant (for advice) you'll need someone to keep the accounting records up to date, preferably using accounts software. For start ups I would suggest you look at Quickbooks (you can try and send it back if no good) as it is cheap (less than £200) and amazingly flexible re reporting. If you understand double entry its easy to use, in fact if you don't know double entry it has a good tutorial.
The other main issue I'd be concerned about is drawing up the partnership agreement and in particular the termination issues. I know it seems daft to talk about divorce before marriage but you'll all save a lot of arguments later when one or more of the partners wants to leave.
Good luck.
The other main issue I'd be concerned about is drawing up the partnership agreement and in particular the termination issues. I know it seems daft to talk about divorce before marriage but you'll all save a lot of arguments later when one or more of the partners wants to leave.
Good luck.
God luck mate. I can offer you some free consultancy if you like, and a website (massive whopping discount to a fellow ph'er and new business owner applies 
)
Remember to take advantage of your free entry into yellow pages, thompson local, and you will almost certainly be able to necotiate first 3 months lease on office space for free.
There have been some really good posts, so do check out all the links. Oh, and invest copious amounts of your free time in networking!
) Remember to take advantage of your free entry into yellow pages, thompson local, and you will almost certainly be able to necotiate first 3 months lease on office space for free.
There have been some really good posts, so do check out all the links. Oh, and invest copious amounts of your free time in networking!
Just remember the most important part is getting the money in. Not such a stupid comment. My wife and I have a recruiting business. Did an excellent job for a company in Milton Keynes, but as we are in Detroit, Michigan USA took their time to pay. Total pain in the neck. If you're not going to get paid don't bother with them.
Next important is selling. Whether you're a Solicitor, IT firm, Doctor, Engineer, Sandwich shop, Bar, whatever, if people don't use your firm you won't even get the chance to make money.
Finally never spend money if you can avoid it. Ever. We used to have very expensive offices, now we have staff work from home which is great for them and better for us. We have reliable computers running NT so we never upgrade, causes more bother than it is worth. Just be totally tight fisted and you will be a business survivor.
Next important is selling. Whether you're a Solicitor, IT firm, Doctor, Engineer, Sandwich shop, Bar, whatever, if people don't use your firm you won't even get the chance to make money.
Finally never spend money if you can avoid it. Ever. We used to have very expensive offices, now we have staff work from home which is great for them and better for us. We have reliable computers running NT so we never upgrade, causes more bother than it is worth. Just be totally tight fisted and you will be a business survivor.
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