Yastafox Posted 20 February 2014 Posted 20 February 2014 Well after many years of thinking I should start my own business up I've decided to give it a shot. Anyone out there considering or have done so? Any advice/words of wisdom/pitfalls/regrets? Much appreciated!
DennisNedry Posted 20 February 2014 Posted 20 February 2014 What's your product or service? I promise not to steal it
Bayfox Posted 20 February 2014 Posted 20 February 2014 I inherited my Company so not quite the same but willing to offer some advice if I can. What are you planning to do and does this mean a one man band or are you looking to employ people etc. If you can give a vague idea I will help if I can.
Zingari Posted 20 February 2014 Posted 20 February 2014 i've decided to start a business making rose tinted spectacles for short sighted tory voters.
Guest MattP Posted 20 February 2014 Posted 20 February 2014 i've decided to start a business making rose tinted spectacles for short sighted tory voters. I'm starting up a nationwide chain of candle and torch stores for when Labour get back in. Going to be a billionaire.
purpleronnie Posted 20 February 2014 Posted 20 February 2014 i've decided to start a business making rose tinted spectacles for short sighted tory voters. I'm starting up a nationwide chain of candle and torch stores for when Labour get back in. Going to be a billionaire. I'll take one off both of you just to be safe.
harpendenfox Posted 20 February 2014 Posted 20 February 2014 Well after many years of thinking I should start my own business up I've decided to give it a shot. Anyone out there considering or have done so? Any advice/words of wisdom/pitfalls/regrets? Much appreciated! Cash is king. It's an old cliché, but far more businesses would succeed if they followed that mantra. Loads go bust because they may feel like they've made a decent amount of sales, but they haven't been paid. And if you aren't paid, you go hungry, as do your suppliers. Depending on what you do, make sure your invoices are issued the moment a job is completed, and make sure they are paid within 15 days if possible. If you don't get this right, nothing else matters. Good luck!
Bayfox Posted 20 February 2014 Posted 20 February 2014 Cash is king. It's an old cliché, but far more businesses would succeed if they followed that mantra. Loads go bust because they may feel like they've made a decent amount of sales, but they haven't been paid. And if you aren't paid, you go hungry, as do your suppliers. Depending on what you do, make sure your invoices are issued the moment a job is completed, and make sure they are paid within 15 days if possible. If you don't get this right, nothing else matters. Good luck! 15 Days God I wish I dealt with you, it takes me 60 to get my money out of one of my main clients.
Zingari Posted 20 February 2014 Posted 20 February 2014 I'm starting up a nationwide chain of candle and torch stores for when Labour get back in. Going to be a billionaire. Riot gear, shop window repairs and fire fighting equipment manufacturing is always a good business to be in after a few years of tory (mis) rule .
harpendenfox Posted 20 February 2014 Posted 20 February 2014 15 Days God I wish I dealt with you, it takes me 60 to get my money out of one of my main clients. Well as long as they pay you regularly it may not be quite as bad, but it is one of the most immoral practices I know in business, and the multi nationals like Tesco are as guilty of it as any. It's pathetic business practice. Through a mix of luck and tenacity I've only experienced two bad debts in 25 years or so of being involved with businesses at fairly senior level. As a matter of interest has this company been a client of yours for a long time?
sphericalfox Posted 20 February 2014 Posted 20 February 2014 I'll take one off both of you just to be safe. yeah, but waddaboot their products? badoomtish
Zingari Posted 20 February 2014 Posted 20 February 2014 15 Days God I wish I dealt with you, it takes me 60 to get my money out of one of my main clients. any chance of offering a small% discount for early payment ? obviously you'd need to add a small amount to the bill first.
Alf Bentley Posted 20 February 2014 Posted 20 February 2014 15 Days God I wish I dealt with you, it takes me 60 to get my money out of one of my main clients. Likewise.... End of month, one month in arrears is my typical payment time (i.e. work done now paid at end of March). 1 or 2 pay more quickly, but I have one regular who pays at 3 months (i.e. work done now paid in May!) Mind you, I quite like that now. It means that I'm assured of some income for at least a couple of months ahead, even if things go disastrously slack....a bit of time to see that I'm heading for an iceberg and need to do something! That'll vary greatly by the nature of the business, though,
Bayfox Posted 20 February 2014 Posted 20 February 2014 Well as long as they pay you regularly it may not be quite as bad, but it is one of the most immoral practices I know in business, and the multi nationals like Tesco are as guilty of it as any. It's pathetic business practice. Through a mix of luck and tenacity I've only experienced two bad debts in 25 years or so of being involved with businesses at fairly senior level. As a matter of interest has this company been a client of yours for a long time? any chance of offering a small% discount for early payment ? obviously you'd need to add a small amount to the bill first. I know it does my head in at times, it's a pain if you do loads of work for them one month and not a lot the next as then it affects cash flow as it's not such a steady stream. Yes been working for them for over 20 years and yes they do always pay in fairness just our terms are 30 days and their standard response is we pay at 60. At least they do regular payment runs, hate companies who you invoice for work a few days before one payment run and you get it wasn't processed in time, so it will be on next month, meaning you wait 5 weeks. The only way we could offer discount for early payment would be to bump up prices on each job and they are pretty hot on noticing uncompetitive prices and any thing out the ordinary, we lost there work for 2 months a few years back for trying to bump our fitting charges.
sphericalfox Posted 20 February 2014 Posted 20 February 2014 I can't believe you all are suggesting he should become a drug dealer.
foxoffderby Posted 20 February 2014 Posted 20 February 2014 If your doing well reinvest as much money as you can into the business, in stock and save for VAT/ Tax purposes in the first couple of years then build from there. The first couple of years are the toughest. Then after that you can start taking a bit more out for yourself.
Monk Posted 20 February 2014 Posted 20 February 2014 Hard to give any tips if you don't tell us what kind of business it is? Always pay for a good accountant don't try to wing it yourself. Become knowledgable in the basics of tax. Keep good records - expenses in particular Use a good piece of software to run the finances side of things - I use freeagent.com Don't use a personal bank account for business stuff Don't confuse the company's money with your money
Tommy G Posted 21 February 2014 Posted 21 February 2014 Remember being self employed / starting your own business can affect things like mortgages (in a negative way sometimes) A lender may ask for 2 recent set of annual accounts or tax returns before they will lend to you. just in case you are thinking of buying a house in 3 months time. Most of the successful businessmen I have worked with over the years have a few common traits Driven - they will work 70 hours a week to make sure they are success On the ball - with every aspect of the business from top to bottom A people person - you dont see many successful introverts Cash - Keep an eye on it and your gearing even more so I cannot stress how important it is top have a good accountant, and solicitor to deal with the legals. You may pay a bit more, but they may have a funky way of saving you 20 x that in tax. Good luck
Jon the Hat Posted 21 February 2014 Posted 21 February 2014 If you dont understand your profit margins you are screwed.
Zingari Posted 21 February 2014 Posted 21 February 2014 If you're not providing a service or product at a competitive price that the public want , you'll probably be screwed . ( Zingari's indispensable little book of wit and wisdom available nationwide at all good toilet doors)
hairy Posted 21 February 2014 Posted 21 February 2014 Well after many years of thinking I should start my own business up I've decided to give it a shot. Anyone out there considering or have done so? Any advice/words of wisdom/pitfalls/regrets? Much appreciated! One thing that got me was that everyone seemed to think you were a bit stupid and try to rip you off. Get a business plan together. It will give you an idea of your targets in terms of turnover and how much you have to make to clear your overheads before you make any profit. It doesn't have to be anything special but in putting it together it will make you focus on what you have to do to make it profitable.
Dr The Singh Posted 21 February 2014 Posted 21 February 2014 My wife is thinking of doing secreterial/PA from home, self empolyed, any tips???
Zingari Posted 21 February 2014 Posted 21 February 2014 My wife is thinking of doing secreterial/PA from home, self empolyed, any tips??? Yes , make sure you don't come home unexpectedly while she's err .. working .
harpendenfox Posted 21 February 2014 Posted 21 February 2014 Dr The Singh, on 21 Feb 2014 - 09:54 AM, said:My wife is thinking of doing secreterial/PA from home, self empolyed, any tips??? Suggest she ensures her LinkedIn profile is up to date and relevant, and that she markets her services in the Regus type offices around where you live. That's where she'll hopefully find plenty of people who need a bit of PA support, but don't need / can't afford a full time person. Word of mouth is important. When she has happy clients, make sure she asks them to 'recommend' her on LinkedIn, or in a simple letter/email
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