I've set up, ran (and still run) and sold a few businesses over the last 30 years. I am not sure about the importance of a good accountant, but more about being realistic and honest about finances. If you need an accountant to help with this, then get one. If you are unclear or unsure about what your business will cost to get off the ground, you probably shouldn't be doing it.
Setting up business targets is, in my view, all important. This is both financially and in terms of your business direction. If you document your targets, you have a much better chance of being realistic of where you are heading because inevitably your business won't be quite as you planned. It is very easy to convince yourself are doing well because you are busy/feeling good/having good feedback from clients etc. whereas successful business is more about profit and future profits - in other words, sales minus costs. Being aware of the mistakes/changes needed etc. is key to your success.
A spreadsheet is a good starting point. I can help if you want to Inbox me.
I've set up, ran (and still run) and sold a few businesses over the last 30 years. I am not sure about the importance of a good accountant, but more about being realistic and honest about finances. If you need an accountant to help with this, then get one. If you are unclear or unsure about what your business will cost to get off the ground, you probably shouldn't be doing it.
Setting up business targets is, in my view, all important. This is both financially and in terms of your business direction. If you document your targets, you have a much better chance of being realistic of where you are heading because inevitably your business won't be quite as you planned. It is very easy to convince yourself are doing well because you are busy/feeling good/having good feedback from clients etc. whereas successful business is more about profit and future profits - in other words, sales minus costs. Being aware of the mistakes/changes needed etc. is key to your success.
A spreadsheet is a good starting point. I can help if you want to Inbox me.
Where is the best place to start? I mean I have an idea for the business and a location, but what are the steps lifers have taken to get where they are?
I set up as a Sole Trader in November last year and am in the middle of meeting a big (for me) contract from the local authority. I've worked in the field I trade in for years (no, I'm not a farmer) and I am earning around 50% of what I was getting this time last year. It is plenty enough to live on, I have long periods when I have nothing more pressing to do than walk the dog, play guitar and plan my next holiday. I actually work approximately 5-10 days per month. I no longer feel like a) driving over the central reservation on my way to work, b) walking out of an office full of headless chickens (no, I'm REALLY not a farmer) and straight to the nearest off licence to get plastered c)going home and never coming out again. I don't feel sick in the morning, I don't get unreasonable outbursts of rage. I don't have constant nagging doubts about what I do, or about myself. I'm one of the best at my job I know and although it is challenging I actually would do it if I won the lottery. So there. I have no fears about tax, I don't earn enough to register for VAT and I work on cash basis. Money comes in, I record it, I'll declare it. I am claiming back on car mileage, printer ink, paper and a percentage of home costs to cover working from home. It doesn't look like rocket science. An accountant was going to charge me £200 - to do a day's basic bookkeeping that is too much in my opinion - maybe I'm naive and will regret doing it myself, we'll see! Good luck.
My advise would be that Accountants are not always better if they charge more. As the rules are, essentially, the same all Accountants should come up with the same recommendations. Some are, clearly, better than others, but I would avoid the expensive ones as they, often, tend to offer less value for money. If you are running a massive company then fair enough, but if it's a SME then you don't need as much help as it becomes rather simplistic.
HMRC offer a number of training sessions on various subjects (all of which are free) and they also offer free software for things like PAYE, which Accountants have no qualms about charging you hundreds of pounds a year for. The software will produce payslips and P60s and will calculate all the NI and Tax that is due and will tell you when to pay it and where to pay it.
As easy as it is to want to have a professional; do all these things for you if you are going to be working hard and accepting less income for a while doing these things, which take an hour to set up and a few minutes a month to carry out make sense.
Check out the HMRC website, and if you want more specific information on it PM me.
I set up as a Sole Trader in November last year and am in the middle of meeting a big (for me) contract from the local authority. I've worked in the field I trade in for years (no, I'm not a farmer) and I am earning around 50% of what I was getting this time last year. It is plenty enough to live on, I have long periods when I have nothing more pressing to do than walk the dog, play guitar and plan my next holiday. I actually work approximately 5-10 days per month. I no longer feel like a) driving over the central reservation on my way to work, b) walking out of an office full of headless chickens (no, I'm REALLY not a farmer) and straight to the nearest off licence to get plastered c)going home and never coming out again. I don't feel sick in the morning, I don't get unreasonable outbursts of rage. I don't have constant nagging doubts about what I do, or about myself. I'm one of the best at my job I know and although it is challenging I actually would do it if I won the lottery. So there. I have no fears about tax, I don't earn enough to register for VAT and I work on cash basis. Money comes in, I record it, I'll declare it. I am claiming back on car mileage, printer ink, paper and a percentage of home costs to cover working from home. It doesn't look like rocket science. An accountant was going to charge me £200 - to do a day's basic bookkeeping that is too much in my opinion - maybe I'm naive and will regret doing it myself, we'll see! Good luck.
Good luck to wheresmy ticket in achieving a life style that suits him, but beware it is very unusual.
It takes a lot of hard work to set your self up and usually without a lot of money coming in at first. Being self employed certainly can have its benefits, but its not always a bed of roses!
I dont know what trade you are in, but usually the biggest problem is waiting for your customers to pay you. Is your trade affected badly by any recession? If so you have to have contigency plans in place when you have no work.
I have seen both the good sides and the bad sides of having my own business. In fact I lost our family home in the early 90's due to the recession then. I'm just glad my wife was strong and stood by me through some very trying and upsetting times.
Not trying to put you off, in fact good luck to you if you go ahead, just trying to show you both sides of the story!
Where is the best place to start? I mean I have an idea for the business and a location, but what are the steps lifers have taken to get where they are?
Care to share your idea or is that too risky
I doubt it. The world is 2014 years old to the best of our knowledge. Most ideas have been done.
The best business is anything to do with funerals. People are dying to give you there business.
It's a great thing to try and do though cray and if you work hard and do the work yourself and with people you trust 100% you can achieve a feeling of pride that I haven't experienced before
To get feed back that your company are a great example in its field of how to deliver is brilliant
We were at a trade show for the nus at the nec and for a fledgling team we were not out of place against companies with more staff better equipment and more finance behind them and in the opinions of some of their clients are interested in working with us in the future
It's only words but if one of the 5 come over its a whole new opening
Where is the best place to start? I mean I have an idea for the business and a location, but what are the steps lifers have taken to get where they are?
Care to share your idea or is that too risky
The world is 2014 years old to the best of our knowledge.
Where is the best place to start? I mean I have an idea for the business and a location, but what are the steps lifers have taken to get where they are?
Care to share your idea or is that too risky
The world is 2014 years old to the best of our knowledge.
Wtfingf.
You can't be serious.
I know!
I mean I can't know for sure that the world existed before I was born.
In an ideal world you would have enough start up capital that you wouldn't need a bank loan.
In an ideal world you would have enough capital that you wouldn't need to bother
I only say that as for those that have no capital the banks will, literally, laugh you out of their office. Lending for start up businesses is both very difficult to get and incredibly expensive. I would go as far as to say that many businesses are profitable with out the need for a bank loan and unprofitable with one.
In the situation where someone has no cash behind them they should consider looking for help from family, either as a friendly loan or equity partnership or getting some paid work to save up some. No financial institution wants to risk their (or their shareholder's) money on someone that is risking nothing of their own in an attempt to make a lot of money in the future. It was always like this but never more so than now!
Where is the best place to start? I mean I have an idea for the business and a location, but what are the steps lifers have taken to get where they are?
Care to share your idea or is that too risky
I doubt it. The world is 2014 years old to the best of our knowledge. Most ideas have been done.
The best business is anything to do with funerals. People are dying to give you there business.
Your never be skint.
Thanks for that positive input. Plenty of opportunities out there.
In an ideal world you would have enough start up capital that you wouldn't need a bank loan.
In an ideal world you would have enough capital that you wouldn't need to bother
I only say that as for those that have no capital the banks will, literally, laugh you out of their office. Lending for start up businesses is both very difficult to get and incredibly expensive. I would go as far as to say that many businesses are profitable with out the need for a bank loan and unprofitable with one.
In the situation where someone has no cash behind them they should consider looking for help from family, either as a friendly loan or equity partnership or getting some paid work to save up some. No financial institution wants to risk their (or their shareholder's) money on someone that is risking nothing of their own in an attempt to make a lot of money in the future. It was always like this but never more so than now!
If anyone needs help/ advice on the finance/ banking side please feel free to get in touch. I currently look after circa 200 customers in the SME market.
Comments
Setting up business targets is, in my view, all important. This is both financially and in terms of your business direction. If you document your targets, you have a much better chance of being realistic of where you are heading because inevitably your business won't be quite as you planned. It is very easy to convince yourself are doing well because you are busy/feeling good/having good feedback from clients etc. whereas successful business is more about profit and future profits - in other words, sales minus costs. Being aware of the mistakes/changes needed etc. is key to your success.
A spreadsheet is a good starting point. I can help if you want to Inbox me.
HMRC offer a number of training sessions on various subjects (all of which are free) and they also offer free software for things like PAYE, which Accountants have no qualms about charging you hundreds of pounds a year for. The software will produce payslips and P60s and will calculate all the NI and Tax that is due and will tell you when to pay it and where to pay it.
As easy as it is to want to have a professional; do all these things for you if you are going to be working hard and accepting less income for a while doing these things, which take an hour to set up and a few minutes a month to carry out make sense.
Check out the HMRC website, and if you want more specific information on it PM me.
It takes a lot of hard work to set your self up and usually without a lot of money coming in at first. Being self employed certainly can have its benefits, but its not always a bed of roses!
I dont know what trade you are in, but usually the biggest problem is waiting for your customers to pay you. Is your trade affected badly by any recession? If so you have to have contigency plans in place when you have no work.
I have seen both the good sides and the bad sides of having my own business. In fact I lost our family home in the early 90's due to the recession then. I'm just glad my wife was strong and stood by me through some very trying and upsetting times.
Not trying to put you off, in fact good luck to you if you go ahead, just trying to show you both sides of the story!
Has anyone used a bank for a loan to fund there business?
Banks wont lend anything unless you can show them how they will get a return.
The offer I put on the looking for work thread still counts
Anyone who is 7.5 ton licenced and looking for a couple of days work to start with
Who is serious and not a clock watcher or a 9 to 5 merchant send me a pm
Must have own car to get to vehicles that will be in Enfield
Have no more than 6 points and a digital tachograph licence holder
Work is varied and heavy but trust me in comparison to multi drop you will be in heaven
The best business is anything to do with funerals. People are dying to give you there business.
Your never be skint.
To get feed back that your company are a great example in its field of how to deliver is brilliant
We were at a trade show for the nus at the nec and for a fledgling team we were not out of place against companies with more staff better equipment and more finance behind them and in the opinions of some of their clients are interested in working with us in the future
It's only words but if one of the 5 come over its a whole new opening
Family ain't always the solution my.nephew let me down royally
You can't be serious.
I mean I can't know for sure that the world existed before I was born.
In the situation where someone has no cash behind them they should consider looking for help from family, either as a friendly loan or equity partnership or getting some paid work to save up some. No financial institution wants to risk their (or their shareholder's) money on someone that is risking nothing of their own in an attempt to make a lot of money in the future. It was always like this but never more so than now!
Will look into this for sure.
https://gov.uk/government/uploads/system/uploads/attachment_data/file/32246/12-828-make-business-your-business-guide-to-starting.pdf