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So - I'm setting up a new business to work from home

edited September 2009 in Not Sports Related
Will involve a fair bit of retraining on my part - and also I haven't the first clue about how to run a company but I feel this is the right time to do it. I am fed up with office work and office politics and I want to make the rules. I have a little bit in the bank from my redundancy so I now need to get my shit in order and get started - my Dad is going to hopefully be passing me some work as I retrain so that will keep the income flowing hopefully

Anyone on here got any real pearls of wisdom for me in order to make a new business a success! Some recommended reading perhaps or tips on tax and how to save money

Also - any advice on what the best packages are for doing my accounting would be much appreciated
thanks in advance

wish me luck
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Comments

  • Get a good accountant, they'll understand far more about tax and what you can and can't get away with than you ever will. They will recommend a good accountancy software package - but Sage generally offer a lot of software aimed at SMEs, plus you don't want to be spending time on accounts when you should be chasing business.

    A general tip...cash flow is king. It's one thing doing business, but another getting paid. Work on the basis (that unless your business is a cash on delivery type service) that you'll get paid somewhere between 30 and 60 days after invoicing and in that time you'll have to pay a mortage/council tax and other bills, plus maybe fund advertising/marketing and pay bills in order to carry on working. Poor cash flow kills a lot of businesses.

    Get a good business plan and try and have a couple of other revenue producing irons in the fire - even if they don't make much money they will help to keep your head above water, but don't spend too much time chasing small amounts of business. Learn to manage your time as you would your finances.
  • Sound advice from, BFR.

    Particularly watch cash flow ..... if you run out of cash or even credit, you can't trade and you're finished.

    Even if you never use it, fix yourself in place a decent overdraft facility, it's your emergency saftey net - then if people are slow to pay you can at least keep going.

    Watch your expenditure ...... every penny not spent, is equivalent to a penny earned.

    Similarly, at first don't buy anything you don't really need -if you'd like a new desk, then make do with the kitchen table.

    And so on. Great advice on the net, seek it and use it!
    Good luck!
  • I worked from home part time for 4 years & have 1 very importnat suggestion. DON'T TURN ON THE TV!!!!
    Radio yes - TV NO!
  • [cite]Posted By: Swisdom[/cite]

    Anyone on here got any real pearls of wisdom for me in order to make a new business a success! Some recommended reading perhaps or tips on tax and how to save money

    Don't use your Mobile abroad to keep track of Charlton.
  • [cite]Posted By: Dazzler21[/cite]
    [cite]Posted By: Swisdom[/cite]

    Anyone on here got any real pearls of wisdom for me in order to make a new business a success! Some recommended reading perhaps or tips on tax and how to save money

    Don't use your Mobile abroad to keep track of Charlton.

    Very good sir - very good!!
    [cite]Posted By: F-Blocker[/cite]I worked from home part time for 4 years & have 1 very importnat suggestion. DON'T TURN ON THE TV!!!!
    Radio yes - TV NO!

    I know about this one - I am converting our 4th bedroom so will probably put a time release on the door to only let me out at 5pm
    [cite]Posted By: Oggy Red[/cite]Sound advice from, BFR.

    Particularly watch cash flow ..... if you run out of cash or even credit, you can't trade and you're finished.

    Even if you never use it, fix yourself in place a decent overdraft facility, it's your emergency saftey net - then if people are slow to pay you can at least keep going.

    Watch your expenditure ...... every penny not spent, is equivalent to a penny earned.

    Similarly, at first don't buy anything you don't really need -if you'd like a new desk, then make do with the kitchen table.

    And so on. Great advice on the net, seek it and use it!
    Good luck!

    Ha ha ha - I am looking at office desks and chairs right this minute!


    thanks for the advice though guys - much appreciated
  • Always be willing to listen to TAKEOVER offers - just make sure you keep all interested parties (customers, suppliers, employees, Investors, fans etc) up to date throughout the negotiation process where possible.
  • [cite]Posted By: F-Blocker[/cite]I worked from home part time for 4 years & have 1 very importnat suggestion. DON'T TURN ON THE TV!!!!
    Radio yes - TV NO!

    all good advice above, but working from home myself a fair bit as I do - the above is by far the best !, I've converted the 4th boxroom bedroom at my house into a small office, only got a little radio in there that has TalkSport on it all day. (talk radio passes the time much quicker than music I find)
  • Ha ha ha - I am looking at office desks and chairs right this minute!

    ..........

    Have a look around second-hand furniture stores, charity shops and the like. You'll be surprised at what you can buy for a few quid that would cost you ten times the sum or more brand new.
  • [cite]Posted By: PL54[/cite]Always be willing to listen to TAKEOVER offers - just make sure you keep all interested parties (customers, suppliers, employees, Investors, fans etc) up to date throughout the negotiation process where possible.

    ;-)
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  • Agree with BFR and Oggy 100%. Don't expect to take holidays. If you're busy, there's no time, if there's no work, you're scared to leave the phone in case work comes in. I just totally under-estimated the amount of time our business would consume. 2-3 years minimum of 24/7 work. Stick any spare income away, don't be tempted to go on a personal spending spree. Re-invest and take it slowly. You get good times and shit times, learning how to manage the shit times is pretty important. Customers who won't pay or take months to pay can play havoc with the best business plans. Contracts regarding work need to cover the finest details, don't leave any wiggle room. Above all, be prepared to learn from mistakes, and I include alcoholic accountants and inept banks amongst our mistakes.
  • edited September 2009
    RE Jones inn Lee are my accountants, they are very good. They work my corperation tax out etc etc. They also assemble my year end accounts. Which now have to be submitted a month earlier as this Gov has changed the rule again, just to help f**k us up.


    pay yourself the minimum you can as a wage. then pay yourself dividends on what the company has earned. You dont pay NI on dividends. Also there is a scheme for small companies to pay less VAT you charge the going rate but only pay C+E 12%.
  • Keep a diary : a one day to a page diary and write down what you do every hour of every day. Be disciplined; just because you are at home doesn't mean you ARE at home; you're at work. Start at 09.00h; dress formally (tidy body. tidy mind) ; plan your time carefully; check e-mails first then research or what ever...structure your day. Good luck
  • When you're supposed to be working, one important piece of advice:

    Log off from Charlton Life ....!!!!!

    Otherwise, you'll be totally addickted, spend too much time reading and posting - and never get enough work done.

    Like me!

    ;o)
  • what line of business Swiss ?
  • [cite]Posted By: Oggy Red[/cite]When you're supposed to be working, one important piece of advice:

    Log off from Charlton Life ....!!!!!

    Otherwise, you'll be totally addickted, spend too much time reading and posting - and never get enough work done.

    Like me!

    ;o)

    Too Bloody True..........
  • [cite]Posted By: Miserableold-ish git[/cite]
    [cite]Posted By: Oggy Red[/cite]When you're supposed to be working, one important piece of advice:

    Log off from Charlton Life ....!!!!!

    Otherwise, you'll be totally addickted, spend too much time reading and posting - and never get enough work done.

    Like me!

    ;o)

    Thought you were going to offer to carpet his office.

    Too Bloody True..........
  • Do you need an Office Carpet Swis ?
    (Wheres my agent SoundAs when you need him ?).
  • [cite]Posted By: MrOneLung[/cite]what line of business Swiss ?

    My Dad's company are hopefully going to pass me some Building Services work whilst I train as an energy assessor. Then I will do some work for him and some for myself.

    Always wanted to work for myself as I can't stand office politics and the bullshit that comes with it. Recently got made redundant so figure now is as good a time as any

    Nervous and excited!!
  • [cite]Posted By: Miserableold-ish git[/cite]Do you need an Office Carpet Swis ?
    (Wheres myagentSoundAs when you need him ?).

    Sorry - my house if only 4 months old and the carpets came with the house - I doubt I can justify a new one at this time!! :-)
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  • if you need any Professional Indemnity insurance once fully trained, give me a shout, it's my line of work and I'd get you a deal.
  • [cite]Posted By: Elthamaddick[/cite]if you need any Professional Indemnity insurance once fully trained, give me a shout, it's my line of work and I'd get you a deal.

    Sweet - cheers mate
  • [quote][cite]Posted By: BlackForestReds[/cite]Ha ha ha - I am looking at office desks and chairs right this minute!

    ..........

    Have a look around second-hand furniture stores, charity shops and the like. You'll be surprised at what you can buy for a few quid that would cost you ten times the sum or more brand new.[/quote]

    With so many companies having gone into liquidation there is a lot of 2nd hand furniture around, which you should be able to get at knock down prices, because nobody is buying it.

    Also, there is a guy call geoff keys, who drinks prematch in the Rose of denmark, who trained as an energy assessor (The people that do HIPs right?) he may be worth talking to. let me nknow and I'll introduce you ti him
  • now I am self employed got to sa wish i'd done this 10 years ago. like u the office politics garbage drove me mad in the end and do not miss it at all. Miss the banter I had but get that with the cabbies i meet up with.

    good luck
  • Work on the nice and necessary principle.....If its neccessary, buy it.....if its just nice....forget it...

    Trust nobody in business, otherwise I guarantee someone will bite you on the arse big time.

    Good luck mate.
  • The best move you could make would be to invest a little bit of time with these people: Business Link. They can provide you wih lots of very useful advice, information and contacts to help start yourself off. And, when you need it, they can put you in touch with third party professional advisers who often give you (some of) their time free. It's a very, very good way to find accountants, book-keepings services, business banking services, office services, marketing advice... in short, everything you need when you start up a business, without the (significant) costs if you were to set up your own meetings with them.

    The other piece of advice I would give you is to look into Business Breakfast Clubs. They are a really good way to meet dozens of potential new customers and suppliers in one hit, over breakfast, so you avoid losing time out of your working day.

    Good luck!
  • One more bit of advice. As well as making sure you work all the hours you should (and you've discussed that above) you should also make sure you ONLY work the hours you should. One big problem of working from home is that you always take your work home wih you. So make sure you stop a a reasonable time each day and don't be tempted to work over the weekends.
  • Dont suppose you need some fancy new lighting in your lovely new office to light up your nice new desk?
  • edited September 2009
    [cite]Posted By: Chizz[/cite]One more bit of advice. As well as making sure you work all the hours you should (and you've discussed that above) you should also make sure you ONLY work the hours you should. One big problem of working from home is that you always take your work home wih you. So make sure you stop a a reasonable time each day and don't be tempted to work over the weekends.

    Absolutely spot on Chizz.

    Swiz, you say you've got a spare bedroom to use as an office - it's the best idea (or a decent outhouse/shed/summerhouse in the garden, if you're lucky).

    But it's so important to define work boundaries and work times - not only does it help you maintain the necessary seld-discipline and working routine to maintain focus ....... but equally important, at the end of your working day you can walk out your office door and close it behind you - otherwise you will never switch off and find yourself tired and wound up still trying to get stuff done late at night.

    You need your downtime, for the sake of your sanity and ..... vital, don't neglect your partner and family, if you have one!
    That's the biggest crime of the lot!
  • One more thing ..... record everything in a diary daily as you go - don't neglect your records, book-keeping, etc.

    It'll cost you dear otherwise - and cause you unimaginable stress as you try to catch up 48hrs before the tax deadline.
    I know, I've been there!

    And ask and ensure you keep every receipt. Your accountant will guide you on what you can claim for.

    You also need to separate your personal bank account from your business, and never muddle through.
    Your business bank account, treated as a totally separate entity from your personal finances, should also be a clear back up to your book-keeping, receipts and statements, etc.

    And if you run a credit card, ensure you have one only dedicated to your business.
    Then you can claim interest, etc as part of your legitimate business expenses.

    You'll see the benefits when it comes to filling in your tax return.
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