Setting up a business. Tips?

SideWinder

SideWinder

SideWinder

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Someone i know is looking to set up their first business, so i am looking for tips.

Is there a "how to" website out there? Any useful tips or advice that i could pass on? :)
 
Do your research, is it a worthy business, is it a profitable business, is there a gap in the market for this business or is there a lot of competition
 
is it setting up a business as in turning profit from an idea, or setting up a company to trade as that they want advice on?
 
DJMK4 said:
Do your research, is it a worthy business, is it a profitable business, is there a gap in the market for this business or is there a lot of competition
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Cheers.

Skidder said:
Too loose a brief, so no.
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I don't want to give away too much information as it isn't my idea but it will involve two friends that have known each other for a while. They will offer a cleaning type service but mainly focusing on wealthier people and those who don't have too much time on their hands. It sounds very low risk and won't need a lot of money to start it up. The majority of the money, in my opinion, would be going on advertising, a website and perhaps a few promotional articles in magazines.
 
Abraham said:
is it setting up a business as in turning profit from an idea, or setting up a company to trade as that they want advice on?
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Profit but not something they want to be rich off, if that makes sense. More like an extra income and a change to their normal routine.
 
There are literally thousands of home run cleaning companies. Unless they has some contacts in the business to get them going, it's going to fail.
 
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Research competition in the area. Work out startup, equipment and travel costs. Will a decent profit be made? If there ate a lot of cleaning services around then forget it, you won't get a share of the market. If there are 1 or 2 then it's possible to create healthy competition.
 
Jambo said:
If it's low risk just ******* do it! That's my advice.

There is no greater feedback than actually doing it.
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Agreed.

Unless it'll have a detrimental effect elsewhere, then go for it.

In other words if time allows and the risk is low i.e. the capital outlay/overhead if turned into a complete loss isn't going to bankrupt them, then get on with it.

Stick to the business plan and be disciplined with it.

The worst that can happen is it doesn't work, so as per the above plan and with that in mind, start from a position where a complete failure won't ruin you.

I know that sounds like a pessimistic post but I don't have a clue of what you're doing, I doubt you'll tell me, so that's the best advice I can offer based on your very limited information.
 
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http://www.businesslink.gov.uk/bdotg/action/home
There may also be a local business link who he can speak to directly.

If they are approaching the bank for any sum of money, they will need a business plan & financial forecast. The business link usually will help with theses too.

Have good book-keeping software, it will make end of the year taxes a lot easier to deal with & if they have an accountant it will make things similar at their end too.

Depending on the financial forecast etc they may want to decide if they wish to be a sole trade, plc etc.
 
If you can, fund the start-up yourself.

It'll take a lot of pressure out of 'making money' and ultimately, you won't be paying any interest.

I did the same thing and my work is much more relaxed, I cover my overheads, anything else is a bonus... not the banks!

The creation of my own business and working for myself has been the most inspired decision of my 'modest' lifetime.
 
Not speaking from personal experience here, but having seen a couple of partnerships go wrong over the years I would suggest that they set the business up to cover the 'what ifs'. E.g. one person putting more effort or money in than the other, and how one person could leave the business without being hindered or it being unfair either way. In other words, don't assume they will stay friends!
 
Things to keep in mind:

- Accounting/bookkeeping/Tax - get good advice and find out all allowances
- Business structure, i.e. benefits in going down the Limited company route as opposed to sole trader
- Public Liability Insurance
- Have proper contracts that have been approved for each individual client, saves problems!!!! (Get the small print part of the contract written up by lawyer)
- Understanding budgeting, cashflow and investing in the growth of the business (wise to go on a small business owners course)
- Getting a few good clients/references is worth its weight in gold!
 
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