Starting a new business

EKE_38BPM

After ages doing jobs I didn't particularly enjoy, I've retrained as a Bikeability Instructor and am soon going to start freelancing for an established company as well as being able to do my own thing on the side.

I've stumped up for the first part of training but to become fully qualified I'll need to spend a bit more and I'll also have the usual business needs (insurance, phone, PC, printer etc) as well as tools, increased wear and tear on clothing and bike. For all of this extra spending, I would like to get a business loan.

I have no experience setting up a business, so I don't know what I need to do for things like tax, how to get a business loan, what banks have the best business accounts and a million other things that I haven't even thought of (unknown unknowns).

Can the hivemind give me any practical advice on the things I need to do.

Ta.

bigmat

Was worried for a moment there that you were going to say that you were going into the traffic congestion forecasting industry...

Best of luck anyway, I have no experience with starting a business so will leave it to others to offer sage advice.

DonDaddyD

EKE_38BPM wrote:

After ages doing jobs I didn't particularly enjoy, I've retrained as a Bikeability Instructor and am soon going to start freelancing for an established company as well as being able to do my own thing on the side.

I've stumped up for the first part of training but to become fully qualified I'll need to spend a bit more and I'll also have the usual business needs (insurance, phone, PC, printer etc) as well as tools, increased wear and tear on clothing and bike. For all of this extra spending, I would like to get a business loan.

I have no experience setting up a business, so I don't know what I need to do for things like tax, how to get a business loan, what banks have the best business accounts and a million other things that I haven't even thought of (unknown unknowns).

Can the hivemind give me any practical advice on the things I need to do.

Ta.

Its Greg love time: Contact Greg66 as he has experience with this. I think Redvee might as well.

kelsen

Lots of info here...

http://www.businesslink.gov.uk/

thistle_

I think most banks charge for business bank accounts now, although last time I looked some had introductory offers and sometimes the charges can be minimal if you organise yourself correctly (e.g. only use electronic payments, not cheques). There might be some information on MoneySavingExpert on business accounts.

You can get an accountant to do all your accounts, tax returns etc. A friend of mine reckoned he paid £30 a year for someone to do it, but he hardly had any transactions. The simpler your accounts and more organised you are the less they will charge, if you don't keep receipts and records then they will charge you more to sort it out.

Umbrella companies seemed expensive to me, but I think you pay for the convenience.

If you're after a loan from the bank, work out how much you think you will need and how you expect to pay it back. If you can show you've got a robust business plan the bank is more likely to lend you money at a reasonable rate. Similarly if you're putting some of your own money in (e.g. for training) they might see that you are willing to share the risk with them.

Best of luck.

EKE_38BPM

BigMat wrote:

Was worried for a moment there that you were going to say that you were going into the traffic congestion forecasting industry...

That made me chuckle! I'm happy to say I was wrong about the traffic chaos, although I was looking forward to cycling into central London to watch the chaos and laugh.

optimisticbiker

Go talk to your local Small Business Advisory Service, they have a wealth of info.

Other useful sites:

http://www.smallbusiness.co.uk/

http://www.hmrc.gov.uk/startingup/

All banks provide business accounts and many do special deals for year 1 like free banking (its never free for a business otherwise). I personally use HSBC and have done for many years, but its worth shopping around.

There are business development loans available through the bank from Government schemes and also direct from local business development agencies but you need to have a clear business plan which demonstrates how the loan will be managed/repaid.

From a tax perspective you can either work as a sole trader or set up as a limited company. The advantage of the latter is less useful than it used to be, mainly because you'd pay yourself a small salary taxed as income and take the rest as directors dividends at the lower rate of capital gains tax. In either case you must accurately record incomes and all outgoings. You get into the habit of collecting receipts for everything so you can offset it against tax which you have to pay twice a year through self assessment. It can pay to use an accountant to do it all for you especially if you have multiple employers and it all gets a bit messy, but that does cost. Whatever you do, make sure you keep business and personal stuff very separate (or at least can be clear about which is which).

You can run the business from home (if you rent, check the terms of your lease) and allow a certain proportion of your electricity/heating/rent/broadband etc against tax as well as the capital & running costs of PC, printer, business cards, consumables, phone, etc. Again you need to be able to reasonably justify the amounts though in my experience HMRC rarely check unless they are very unusual; it would be rare to be audited as a very small business but it can happen, esp if you dont get your returns in on time (having said that, in their current state I'd not get too worried, I've never been audited). You do need to keep any invoices/receipts/etc for 7 years as HMRC have the right to go back up to 6 years if necessary.

EKE_38BPM

kelsen wrote:

Lots of info here...

http://www.businesslink.gov.uk/

Cheers for that. I'll be doing lots of reading there.

greg66_tri_v2.0

PM'd

dhope

EKE_38BPM wrote:

kelsen wrote:

Lots of info here...

http://www.businesslink.gov.uk/

Cheers for that. I'll be doing lots of reading there.

Used to work at a place that worked closely with BusinessLink offering startup advice. Think the initial advice is free so might be worth a look
http://centa.co.uk/

(looks like they need some advice on website design, ugh)

tgotb

I believe Santander still offer a business account that is free of charge.