Starting my own business - advice?
Discussion
not trying to let out my waste on any bonfires, but:
i thought wedding planning was as much part of the wedding process as the wedding ceromony itself (for the women-folk)??
I cant think of one woman i know who hasnt talked about planning their wedding (when on the subject) and i doubt that they'd want to let somebody else do this as, they'd rather do it themselves and because they'd have to pay for it aswell (given the cost of weddings in the backround).
all IMHO. i just think you have to be careful before starting any new businesses.
i thought wedding planning was as much part of the wedding process as the wedding ceromony itself (for the women-folk)??
I cant think of one woman i know who hasnt talked about planning their wedding (when on the subject) and i doubt that they'd want to let somebody else do this as, they'd rather do it themselves and because they'd have to pay for it aswell (given the cost of weddings in the backround).
all IMHO. i just think you have to be careful before starting any new businesses.
dragstar said:
i thought wedding planning was as much part of the wedding process as the wedding ceromony itself (for the women-folk)??
Some people find it very daunting, especially things like finding suppliers, or liasing with venues... I wound't dream of getting someone else to organise my wedding, but some epople just dont have the time!
yeah i suppose.
its just that, when i drive past hardware or carpet shops, i wonder how they stay in business
how often do YOU need paint? i just thought the same would happen to you. if you've done the research and have clients lined up then go for it! and good luck.
if not, I'D ring another such agency on the other side of the country and say your interested in some work experiance and then ask loads of questions over the phone.
hang up, and then you should have some ideas/a plan etc to help get you started!
just ideas!
good luck
its just that, when i drive past hardware or carpet shops, i wonder how they stay in business
how often do YOU need paint? i just thought the same would happen to you. if you've done the research and have clients lined up then go for it! and good luck.
if not, I'D ring another such agency on the other side of the country and say your interested in some work experiance and then ask loads of questions over the phone.
hang up, and then you should have some ideas/a plan etc to help get you started!
just ideas!
good luck
WD* said:
I am looking at starting my own business in Wedding Planning... i am really enjoying mine (despite my winge about 5 date changes nthe other day )
What are the legal aspects that I need to look at i.e. getting registered as a business and for VAT etc?
Anything else I need to look at?
one allways set it up as a ltd
ie limted liablity
as you wont be in he shit if things go wroung.
if it gos tits up and your operating as a sole trader
as im guessing you are now.
your personal assets will be at risk
and dont borrow cash personaly secured if you can help it.
as for VAT I dont know the curent celling for VAT registrating.
some one will.
Its only compulsary to register for vat once the company profits pass the yearly celling/limet for vat registration
but some time it can be an advantage to register if you yearly profits are under the current VAT celling.
if you got a lot of outgoing that are deductable.
do some research on it and any other compation in the same feild in the arear you planning to operate in.
and do a plan and projected cash flow befor you make the finaly make your mind up to go ahead.
and dont under estemate the start up cost as it maybe more that you expect untill you can build up a client base.
>> Edited by outlaw on Saturday 22 November 16:42
Best of luck to you. All business start-up's are a risk and I honour anyone prepared to take the chance.
My advice would be to do research. As dragstar said women might like to organise their own wedding but some will not. It all depends on your location and the local demographic.
A few city boys set up a business offering the service of doing anything to help with busy lives. They will do anything, cook meals, do the shopping, clean your house, book a holiday, take car to garage. Its a hit, with regular client, they're now happily reaping the rewards. A simple yet effective idea.
Choose your market carefully. Target areas where there are young, affluent, busy people and I advise that you be ultra professional. Busy, young, affluent people will obviously be by nature shrewd and demanding customers.
I would also work on your pricing (rate by the hour etc), consider seasonal changes (more weddings in summer = less income in the summer), any unique promotional ideas you can think of to draw in business, references from friends/family (say you helped with their day). Consider foreign weddings and present good sales literature that explains how easy it would be. I'd also be tempted to build relationships with suppliers, marquee co.s, balloons etc.
In short go on a small business course, get a business bank account, forget about being VAT registered until you go over the threshold and just get going...! GOOD LUCK!
My advice would be to do research. As dragstar said women might like to organise their own wedding but some will not. It all depends on your location and the local demographic.
A few city boys set up a business offering the service of doing anything to help with busy lives. They will do anything, cook meals, do the shopping, clean your house, book a holiday, take car to garage. Its a hit, with regular client, they're now happily reaping the rewards. A simple yet effective idea.
Choose your market carefully. Target areas where there are young, affluent, busy people and I advise that you be ultra professional. Busy, young, affluent people will obviously be by nature shrewd and demanding customers.
I would also work on your pricing (rate by the hour etc), consider seasonal changes (more weddings in summer = less income in the summer), any unique promotional ideas you can think of to draw in business, references from friends/family (say you helped with their day). Consider foreign weddings and present good sales literature that explains how easy it would be. I'd also be tempted to build relationships with suppliers, marquee co.s, balloons etc.
In short go on a small business course, get a business bank account, forget about being VAT registered until you go over the threshold and just get going...! GOOD LUCK!
Your clients probably would have a good idea of what they want, so your business will probably be Wedding Organiser, ie. the client tells you what they want and you take out all the hassle of booking the venue, catering, etc.
Good idea and best of luck to you.
As for the legal side, your company trading style is likely to be Sole Trader, which means you wont have to register or file company accounts, but can do so should you wish. Accountants and Solicitors usually charge a small fee if you wish to use them as your registered office.
Note that a sole trader is personally liable for any debts of the business. Also, if you were to be sued by an unhappy customer/business contact, you again would be personally liable.
You could alternatively register as a Private Limited Company. You will need to register with Companies House and also file a full set of annual Accounts with the Inland Revenue. The company would be finance by the sale of shares, though these are not available to the general public and would not be listed on the stock exchange. There are tax advantages and also your company would be a separate legal identity so you personally would not be liable for company debts. Management of the company is run by a board of directors.
Do a search on google for "Sole Trader", "Limited Company", and Private Limited Company". And also take a look at the Companies House website for more info.
Best of luck
Good idea and best of luck to you.
As for the legal side, your company trading style is likely to be Sole Trader, which means you wont have to register or file company accounts, but can do so should you wish. Accountants and Solicitors usually charge a small fee if you wish to use them as your registered office.
Note that a sole trader is personally liable for any debts of the business. Also, if you were to be sued by an unhappy customer/business contact, you again would be personally liable.
You could alternatively register as a Private Limited Company. You will need to register with Companies House and also file a full set of annual Accounts with the Inland Revenue. The company would be finance by the sale of shares, though these are not available to the general public and would not be listed on the stock exchange. There are tax advantages and also your company would be a separate legal identity so you personally would not be liable for company debts. Management of the company is run by a board of directors.
Do a search on google for "Sole Trader", "Limited Company", and Private Limited Company". And also take a look at the Companies House website for more info.
Best of luck
Cheers guys, I will have a good look into it.
Wedding Planners/organisers are big business in America, and often you get them attached to hotels, etc, who simply liase with the client to organise the reception.
I have got off to a good start with the lady who we have ooked our wedding car through, so I'm hoping she is going to be a good stepping stone, and in return i can scratch her back She is already passing out my Ann Summers Cards and I only met her on sunday!
Wedding Planners/organisers are big business in America, and often you get them attached to hotels, etc, who simply liase with the client to organise the reception.
I have got off to a good start with the lady who we have ooked our wedding car through, so I'm hoping she is going to be a good stepping stone, and in return i can scratch her back
She is already passing out my Ann Summers Cards and I only met her on sunday! outlaw said:
one allways set it up as a ltd
ie limted liablity
as you wont be in he shit if things go wroung.
if it gos tits up and your operating as a sole trader
Its only compulsary to register for vat once the company profits pass the yearly celling/limet for vat registration
but some time it can be an advantage to register if you yearly profits are under the current VAT celling.
It's actually turnover, not profits that is the VAT decider and the current level is abouut £57k IIRC. If you do register you will have to charge 17.5% on top of all your charges.
The other benefit of forming a company is that you, as the director can pay yourself a small salary and take the rest in dividends, saving NIC. To do this you have to make a profit, obviously.
The best advice is to talk to an accountant.
As usual, too many people post too much inaccurate information in reply to these types of question.
First of all, traders in the UK can run their business in three distinct ways -
i) personally as a "Sole Trader".
ii) with other individual(s) as a "Partnership"
iii) through the vehicle of a "Limited company".
There is a fourth option known as a Limited Liability Partnership. However, since these were introduced a couple of years ago they have not proved to be a very popular choice.
There are pros and cons connected with each set up and it would take far too long to go through these here.
Taxation - all traders have to register with the Inland Revenue for tax purposes. Sole Traders will need to fill in Self Assessment tax returns each year as will the individual partners in a partnership set up. In addition, the partnership itself will also need to complete its own Self Assessment tax return. Sole Traders and Partners must also pay a special form of National Insurance contribution called "Class 2".
Limited companies pay their own type of tax ("Corporation Tax"). They do this by completing Corporation Tax Self Assesment forms and submitting them to the Inland Revenue each year.
Individuals operating through a limited company can draw their personal income from the company in the form of a salary, a dividend or a combination of both. Obviously, if a director receives a salary, the company will be obliged to pay over the Income Tax and Class 1 National Insurance arising on this salary under the PAYE system. Getting the balance right between these payments can be quite complicated.
VAT - businesses in the UK MUST register for VAT when their turnover exceeds (currently) £56,000. Note this figure relates to "Turnover" (i.e. Sales) and not "Profits". However, a business MAY register even if its turnover has not reached this threshold if it so wishes. There are occasions when it can be beneficial to register voluntarilly. You register for VAT with HM Customs and Excise (NOT the Inland Revenue.
Running your own business is a complex matter. Whatever about the complexities of the actual business you have chosen to enter - keeping on top of the paperwork, beaurocracy and taxation obligations is not easy.
The best advice is FIND AN ACCOUNTANT, preferably a qualified one. Look for the letters FCA, ACA, FCCA or ACCA or the terms "Chartered Accountants" or "Certified Accountants". These are the qualifications best suited for your needs. Beware of any firm that just calls itself "Accountants" e.g. "J Bloggs & Co - Accountants". This could indicate that you are dealing with a firm that does not ally itself with any of the recognised institutes and consequently may not be up to speed technically.
>> Edited by eric mc on Sunday 23 November 10:15
First of all, traders in the UK can run their business in three distinct ways -
i) personally as a "Sole Trader".
ii) with other individual(s) as a "Partnership"
iii) through the vehicle of a "Limited company".
There is a fourth option known as a Limited Liability Partnership. However, since these were introduced a couple of years ago they have not proved to be a very popular choice.
There are pros and cons connected with each set up and it would take far too long to go through these here.
Taxation - all traders have to register with the Inland Revenue for tax purposes. Sole Traders will need to fill in Self Assessment tax returns each year as will the individual partners in a partnership set up. In addition, the partnership itself will also need to complete its own Self Assessment tax return. Sole Traders and Partners must also pay a special form of National Insurance contribution called "Class 2".
Limited companies pay their own type of tax ("Corporation Tax"). They do this by completing Corporation Tax Self Assesment forms and submitting them to the Inland Revenue each year.
Individuals operating through a limited company can draw their personal income from the company in the form of a salary, a dividend or a combination of both. Obviously, if a director receives a salary, the company will be obliged to pay over the Income Tax and Class 1 National Insurance arising on this salary under the PAYE system. Getting the balance right between these payments can be quite complicated.
VAT - businesses in the UK MUST register for VAT when their turnover exceeds (currently) £56,000. Note this figure relates to "Turnover" (i.e. Sales) and not "Profits". However, a business MAY register even if its turnover has not reached this threshold if it so wishes. There are occasions when it can be beneficial to register voluntarilly. You register for VAT with HM Customs and Excise (NOT the Inland Revenue.
Running your own business is a complex matter. Whatever about the complexities of the actual business you have chosen to enter - keeping on top of the paperwork, beaurocracy and taxation obligations is not easy.
The best advice is FIND AN ACCOUNTANT, preferably a qualified one. Look for the letters FCA, ACA, FCCA or ACCA or the terms "Chartered Accountants" or "Certified Accountants". These are the qualifications best suited for your needs. Beware of any firm that just calls itself "Accountants" e.g. "J Bloggs & Co - Accountants". This could indicate that you are dealing with a firm that does not ally itself with any of the recognised institutes and consequently may not be up to speed technically.
>> Edited by eric mc on Sunday 23 November 10:15
I have two pieces of advice for you based upon my own painfull experience.
1. Do not underestimate the importance of cashflow and forecasting - they will tell you when and if you can pay your bills or move your business forward.
2. Get well insured and shop around for it. Insurance companies will rob you blind for cover without really understanding your business and if your projects go tits up - your clients will quite rightly chase you to hell and back.
Other than that, it's probably going to be the best and most rewarding thing you'll do career wise.
Best of british mate.
1. Do not underestimate the importance of cashflow and forecasting - they will tell you when and if you can pay your bills or move your business forward.
2. Get well insured and shop around for it. Insurance companies will rob you blind for cover without really understanding your business and if your projects go tits up - your clients will quite rightly chase you to hell and back.
Other than that, it's probably going to be the best and most rewarding thing you'll do career wise.
Best of british mate.
I can't recommend any individual books on accounting or running your own business - accounting textbooks are far too dry and theoretical and tax books go out of date very quickly (like, every year). However, "Tolleys Tax Guide" is a pretty good general book on the main areas of taxation and there are some good chapters on the tax aspects of being Self Employed, running a partnership or operating a small limited company. The Inland Revenue's web site has some useful tips on what to do when setting up in business too.
IR35 is only of interest to those who run what the Inland Revenue call "personal service companies" (and they aren't what you might think they are either).
As I said earlier, finding a good accountant is avery good initial step to take. You'll get the low down on what you need to be doing and he or she will make sure you start off on the right foot.
IR35 is only of interest to those who run what the Inland Revenue call "personal service companies" (and they aren't what you might think they are either).
As I said earlier, finding a good accountant is avery good initial step to take. You'll get the low down on what you need to be doing and he or she will make sure you start off on the right foot.
Best bit of advice is to contact your local business link.
They will sent you all the info you need and also arrange for you to see one of their business consultants.
They will advise you on planning your business and things like possible grants available / finance / marketing etc etc.
Do a search for "business link" on google then call them to make an appointment.
Personally I like the idea very much and tried to persuade my other half to do something similar some time ago. If you like / work in the right area I think it could make lots of money.
Good luck.
Sam
They will sent you all the info you need and also arrange for you to see one of their business consultants.
They will advise you on planning your business and things like possible grants available / finance / marketing etc etc.
Do a search for "business link" on google then call them to make an appointment.
Personally I like the idea very much and tried to persuade my other half to do something similar some time ago. If you like / work in the right area I think it could make lots of money.
Good luck.
Sam
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