my business does not have enough 'gravitas'

[bazaarboy]

This is as much about mind-set as outcomes as it will define your long term business objectives. It is relatively easy to have huge profit margins when trading on your own.

Apps are good

I am sure you will agree that a contracting / self-employed model for staffing would be the best way forward. This may cost the business slightly more short term but reduces employer liabilities and costs with everything from pensions to HR support. It also facilitates dynamic scalability.

The OP + 1 or 2 other business partners / investors as directors of the company, small office £10K-£30k per annum, then the rest done through contracting staff @ £30K-£60k per annum each. Notable other start-up costs, although these could vary hugely, may be IT and communication infrastructure and software licencing @ £10k - £15K, employers liability insurance, professional indemnity insurance (guessing £1m-£15m for undertaking sizeable contracts) @ £1K-£2K plus a couple of K again for misc. accountancy and admin fees.

thanks Scrutinize - these sorts of ballpark figures are v useful
I already have a good Firm of accountants and Solicitors, so that's one less thing to worry about...

one a separate note, what's your view on hiring friends or family - I know some capable people, but I've never worked with them, and more to the point I've never been their boss - lol

 

[Django x2]

I'm not sure the figures quoted are all that useful until you start to research them yourself (knowing what you need). For instance, an office capable of housing 10 individuals is likely to have rates of around £1k per week depending on where it is, etc. I also wouldn't be paying £60k a year for contracted staff (most of whom in the IT/programming industry will want all kinds of IR35 related sanctions, etc). It's almost too difficult to state figures until you know everything else and what you actually need staff for/to do.

Re friends. I moonlight my IT skillz for a very successful buying agent, the company of which was started by 4 friends (I knew 3 of them personally too) who collectively made themselves directors of the company. Each has a role, (finance, IT, teaboy ) but each also collectively works to ensure clients are met, stamps are put on mailshots, etc.

They operate from the top floor attic of one guys house and have an array of IT systems in place. Their turnover last year was £2.6m. They started in 2007 and excelled straight off the bat but haven't always had it easy, especially with the housing market like it was, fortunately, they were slightly immune as they only deal with £1m + houses.

They all get along just fine and it's a true testament to their friendship. It might work for you, it might not. If you have any doubts, probably best to avoid it unless it's remedial work (invoicing, admin, etc).

 

[Scrutinize]

thanks Scrutinize - these sorts of ballpark figures are v useful
I already have a good Firm of accountants and Solicitors, so that's one less thing to worry about...

one a separate note, what's your view on hiring friends or family - I know some capable people, but I've never worked with them, and more to the point I've never been their boss - lol

No problem with friends and family as long as expectations are managed. I would happily set up in business with some people I know. There was a time that the family business was the backbone of British industry.

You would ask the same questions irrespective of who they are if they are working for you as employees: do they have the right skills, are they capable and quick to learn, are they hard working, will they contribute, challenge and question but ultimately respect your decisions, can you trust them?

If they are a business partner / director then: do you get on with each other, do you need them?

 

[bazaarboy]

just having a look at Regus, they offer a managed service - and you pick how much or how little you want, and can include administrative and IT staff to work for you / on your behalf - booked a view tomorrow at 11am...