Starting from scratch, the practicalities.

Chew_Barker · 11 November 2009 at 12:23PM

If this is not the correct place to post this then mods please move.

Another forum I visit had this post.

I'm wondering wether it is actually possible to start completely from scratch without breaking any laws or regulations.

At a bookshop this weekend I was flicking through Paul McKenna's I Can Make You Rich and read something that was quite interesting to me. On this page Paul said that when trying to find the 'recipe' that natural rich people use he asked some rich, successful people the following question.
Imagine you wake up one day in a completely alien place to you with only £100 in your pocket, you have no contact with friends, colleagues etc how will you turn the £100 into the riches you have today ?

The answers were varied, but all were based around starting some very small business and building this and diversifying.

I have been thinking about this realistically and believe that in the UK there are too many regulations and laws to actually start a business from only £100 while remaining completely on the right side of the law and other regulations.

My feeling is there is always an insurance, trading license, driving license, health and safety, tax, or qualification/certification problem preventing a honest business starting for only £100.

What are your thoughts ? How does this compare globally ?

I think I agree with the OP here, perhaps I'm not trying hard enough to see past the problems they present, but he does make a good point that rags to riches is tricky in our country due to all the red tape.
What do the rest of you think ?

Paws · 11 November 2009 at 12:41PM

I think it's perfectly possible to set up as a sole trader for £100 IF you exclude insurance. :mad::D

For limited companies yes lots of red tape and forms, but not really for sole trader, it's more about using your initiative and lots of planning.

I'm setting up as a sole trader currently, and I have NO start up capital!:eek: So don't think it can't be done :beer:

Chew_Barker · 11 November 2009 at 12:52PM

Paws wrote: »

I think it's perfectly possible to set up as a sole trader for £100 IF you exclude insurance. :mad::D

That's blatant cheating

What work will you be doing ? Are you sure you've not overlooked something like already being a qualified ___ ?

At the minute all I can think of is gardener, but then you'd still need the insurance and maybe something else for the waste (?)

Paws · 11 November 2009 at 1:14PM

Chew_Barker wrote: »

That's blatant cheating
What work will you be doing ? Are you sure you've not overlooked something like already being a qualified ___ ?

At the minute all I can think of is gardener, but then you'd still need the insurance and maybe something else for the waste (?)

My username should give you a clue to my industry.

It helps to already be qualified or experienced of course! I wouldn't start a business in something I knew totally nothing about, but there are lots of things you can make with your hands or services you can provide to people with hardly any start up capital. You can then take on staff as the business grows and manage it rather than do the stuff yourself etc.

The main thing is getting exposure and marketing and advertising, that's what I'm looking at currently as it's so important that you get regular customers to tide you over as quickly as possible from when you start up.

Corny to say it - I think you need to think outside the box a bit!

cavework · 11 November 2009 at 8:42PM

Started with £40 , my purple Fiesta and one client 5 days a week 20 hrs a week. We were classed as self employed cleaners but covered by clients insurance as it was a business..they also provided the cleaning supplies, we paid for our own fuel etc First month we earned £100 each second month £150
6 years on we employ 6 full time and 1 part time staff and have a turn over of over 1.5K which fingers crossed is still growing.
We put in 12 hours a day for the first 12 months and earned very little, took every job going and were knackered. Every spare penny went back into the business.
We are still far from rich and still work 5 days a week.. usually 10 hours a day including the admin of the business which increases all the time.
One thing that worked for us and still does is that we consider ourselves to also be employees of the company and only take a weekly wage no matter how hard up we are.
It can be done, it's darned hard work and sometimes you just want to pack it all in, but if you are really serious about working for yourself, absolutely nothing will make you throw in the towel, It really is like watching your baby grow.
The buzz I get at the end of each week is worth all the moments of grief.
Go For it..
xxx

Chew_Barker · 12 November 2009 at 9:31AM

cavework thats fantastic. I imagine it would have been a bit trickier for you if you didn't already have transport, regardless, you certainly seem to have been working within the law and had the insurance covered for much less than £100.
Congratulations, you pass !

Horace · 12 November 2009 at 12:24PM

I set up my business from off the dole via a New Deal programme where I was given £15.38 a week training allowance on top of my JSA of £60 a week. I put the training allowance directly into my bank account and sorted out some public liability insurance which I pay monthly at a rate of £13.34, when I came off the dole and went onto WTC (less than the dole), I put mystery shopping money into my account to keep it ticking over, my £100 back to work grant went in there too and then I got myself some professional indemnity insurance which costs me £11.10 every month. I occasionally top up the account when I do mystery shops and when I have saved up enough £2 coins (my change jars invest in my business). Yes, I have a bit of credit card debt because I have had to pay for advertising but I have been extremely careful where I advertise and how much I pay for advertising, if I can't get the advert space at the price I want to pay then I just don't advertise. Now when I start invoicing for my services..then Business Link will give me £100 which will be ploughed back into the business.

I have looked at different income streams and as a result I am now managing an up and coming rock band, in order to promote my business I have also offered my organising and blagging abilities to a chap that is setting up a Run for Heroes fun run next June..this has now snowballed into a Help for Heroes Day as well..I am working for free but it will look great on my portfolio. Imagine the logistics of 1500 runners and then their families and a few thousand visitors - it is no easy task.

So yes it is possible to set up on a shoestring.

borders_dude · 13 November 2009 at 8:39PM

IM pretty sure a window cleaner would start up for under a hundred quid.

alunharford · 14 November 2009 at 12:55AM

Setting up a limited company cost me 25 quid. No other start-up costs here.

And if you don't have transport, you walk to your client. That's just the nature of doing business.

Starting from scratch, the practicalities.

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