Wanting to start a business, but my credit history is very poor

spadoosh · 24 March 2017 at 12:10PM

poppasmurf_bewdley wrote: »

And with that goes the initial costs of setting it up, plus you have to employ an accountant to do your books. Can you afford these?

You dont need an accountant. Keeping records is about as difficult as it gets.

@OP The market you want to enter is very saturated, thats not to say you cant make a successful business out of it.

There are many different ways of starting a business the problem you have is the restrictions youre placing on it. I dont have any particularly helpful business advice but in order for you to start a successful business you need to be able to work around these restrictions. The more wall you put up the more difficult it will be.

There are also other revenue streams that might be worth looking at. You want to deal with pet supplies? How about pets? Dog sitting, a kennel (you can normally get planning for a kennel or two fairly easily) for holidays, walking, etc etc. These will generate business and put you in contact with potential customers for your supplies. What about grooming?

With any business it becomes more vulnerable the fewer revenue streams you have. You want to diversify your income. If dog food isnt selling at the moment or pets at home have consistently been undercutting your price its good to still have money coming in.

Good luck. Persistence and determination will be needed.

MoneySaver123 · 24 March 2017 at 12:12PM

topaztiger1983 wrote: »

I see the point, but some people like to see a friendly face not a computer screen

Also I was going to set the company up as a Limited Company

A limited company at this stage isn't necessary and will be more costly and time consuming.

I would do as you've mentioned - stay/become a sole trader and start online/eBay with a small amount of stock. You could also advertise your own website in orders that you despatch so that people visit you directly next time, perhaps with a discount code. You could accept PayPal on your website and after a while, PayPal may be willing to advance you credit based on your income, without a credit check.

topaztiger1983 · 24 March 2017 at 12:12PM

I was going to set up the business & then move into the extras, (dog walking, pet sitting, ect.)

spadoosh · 24 March 2017 at 12:18PM

topaztiger1983 wrote: »

I was going to set up the business & then move into the extras, (dog walking, pet sitting, ect.)

Dog walking and sitting require very little in the way of start up costs. A facebook page is more or less all that is required (you will need public liability insurance). You can speak with your clients and get an idea of the supplies they use. You can target them whilst building up a stock holding.

poppasmurf_bewdley · 24 March 2017 at 12:32PM

spadoosh wrote: »

You dont need an accountant. Keeping records is about as difficult as it gets.

I thought it was a legal requirement that limited companies had their books audited professionally. Maybe it's changed.

spadoosh · 24 March 2017 at 12:52PM

poppasmurf_bewdley wrote: »

I thought it was a legal requirement that limited companies had their books audited professionally. Maybe it's changed.

Small companies are exempt from auditing. There isnt much chance a local pet store would surpass small company status (turnover of less than 10.2 million iirc, assets worth less than 5.1 million and or less than 50 staff).

Arleen · 24 March 2017 at 1:27PM

topaztiger1983 wrote: »

I am talking about pet supplies for the public not supplying to the pet stores themselves, maybe eBay is the way to go, in my situation, get some stock sell it on eBay, make a profit buy more stock, until I have enough money to open a store front business

Thanks for you help, NOT

I'm glad to see that my unhelpful post made you reconfigure your business in a way that works with the limited of cash you have. Although that is still not the best way to tackle it, as in your approach you have to first stock up on supplies and then hope that they will sell above price. Consider first working on the pre-order model instead.

But I must say that your defensiveness worries me greatly, not a great thing to have when wanting to run a business of any kind.

topaztiger1983 wrote: »

I can't work 2 jobs as I have the responsibility of caring for my partner

Then how are you supposed to have time to run a starting business? If you wanted to run a physical store you are looking at 12h daily physically in the store, then buying supplies, then doing the accounts, then trying to arrange some marketing and a lot of other things, with weekends spent going to trade shows all around the country. If you don't do it, you won't make it, as each of those is vital.

topaztiger1983 wrote: »

No-one seems to want to give anyone a chance these days, people change and have aspirations, if that is a bad thing then I am sorry, can't blame me for trying to better myself

Pretty sure that the person who employed you already gave you a chance. Although I don't understand why do you think that running a business is a way to better yourself?

topaztiger1983 wrote: »

I don't care if you don't believe in me, I believe in me and I can make this work, with or without help and advice, I will find a way

If pet superstores so dominate the market how do little pet stores stay open

You don't run a business on belief but profits. And the second sentence shows that you are utterly misguided about the market and did babkus concerning research. They do not stay open, and if they do, it's because the owner either lives on borderline poverty line or in severe debt that will soon crush them. The few clients who are willing to pay the premium for a neighbour pet stores are nowhere near enough to sustain them, usually.

It's good to believe in yourself, but it's abysmal to go into business with so little research. Because business must be done with a cold head, otherwise you will join the army of unsung companies that went bust and severely in debt. And the fact that you want to do it with LTD will not save you, as with starting a business you will have to give out personal guarantees for everything.

topaztiger1983 · 24 March 2017 at 1:32PM

If I was to open a shop my partner would be with me at the shop with me

StopIt · 24 March 2017 at 1:43PM

http://smallbusiness.co.uk/business-failure-four-ten-small-companies-dont-make-five-years-2533988/

Only 4 out of 10 small business make it past the 5 year mark.

In order to succeed you need a clear business strategy, capital, and market intelligence.

You do not seem to have any of these things at present.

Who will be your customers? Why would they go to you instead of your competition? What turnover are you expecting in Year 1, 2, 3, 4 and 5? Remember most business lose money before making profit so how are you going to manage before you get in the black?

Making your own business is hard but can also pay dividends. You must have the confidence to fail as well as succeed as fear of failure will mean you're constantly being chased by it. If you're wanting to make a business because you feel you have no other option, you need to take a step back and assess just if this is the answer, or a dangerous step that can lead to more hardship.

Good luck to you whatever you decide, but I'd be finding help and advice from local businesses and traders who will give you invaluable knowledge of your local areas marketplace.

Ilona · 24 March 2017 at 2:41PM

Starting and running a business is a 24/7 operation for at least three years. You wont have time to look after your partner until you are well down the line. Start with something small that you can do at home. Online business perhaps.

Ilona

Wanting to start a business, but my credit history is very poor

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