SB: Small Business Start Up Discussion

Savvy_Sue

Torkijo wrote: »

Definately not megabucks, she will only be doing it for about 2 days a week around the Kids in the first 2 years, after that it will go up to 4/5 but only during school day so probably 25 hours a week max. She has been working as a TA for last year so has (just) reached the allowance for this year so would need to pay this year - can you ask for an exemption in your second tax year?

To the best of my knowledge, yes. However she'd do well to work out what her max income might be: say 2 days per week of 5 hours each, that's 10 hours pw, at say £10 per hour, = £100 pw: if her hourly rate is much more than that then it may get to be borderline if she's doing any work at all during school holidays. There are some expenses to be deducted, use of home probably the main one but also mileage if she is going to collect / deliver the work.

Torkijo wrote: »

Thinking Excel really as even the £280 will eat into her profit and thinking there must be decent support around on top of HMRC and BL.

Looking at the templates on Microsoft's site but most are either domestic finances or for small companies as opposed to self employed.

What does she need to keep track of? the hours she works and what she earns is probably critical. Dates invoices submitted and when paid highly desirable. That mileage if she does any. Other expenses are likely to be 'notional', ie you work them out at a later date rather than track them on a regular basis. does it need to be more complicated than that?

Torkijo

Savvy_Sue wrote: »

To the best of my knowledge, yes. However she'd do well to work out what her max income might be: say 2 days per week of 5 hours each, that's 10 hours pw, at say £10 per hour, = £100 pw: if her hourly rate is much more than that then it may get to be borderline if she's doing any work at all during school holidays. There are some expenses to be deducted, use of home probably the main one but also mileage if she is going to collect / deliver the work.

What does she need to keep track of? the hours she works and what she earns is probably critical. Dates invoices submitted and when paid highly desirable. That mileage if she does any. Other expenses are likely to be 'notional', ie you work them out at a later date rather than track them on a regular basis. does it need to be more complicated than that?

Thanks for this Sue, i was thinking along these lines but its nice to hear it from someone else - i don't see why it should be complicated as its a fairly straightforward model.

Single person sends her the files, she types them and sends them back.

Only outgoings are use of home/electricity etc and a Transcriber pedal / Headset- maybe a replacement laptop in time.

You hear about how complicated it is but sometimes i dont think it is.


Cheers

WelshBuilders

I run a small building contract business. It is essential that you should keep a tight control on costs.

When I started I outsourced most of my activities: my accounts were done by Barney & Co, my website was designed and maintained by a small IT company in India, Supplies and tool were stored at Storage Giant, in fact my initial office was also at Storage Giant, I hired freelance contractors for specific jobs.

Please stay focused on the costs. This gives you flexibility with pricing and also makes break even easier.

Cheers,

Tom.

leon103

Hi

I've recently started selling my handmade soft furnishings and I'm just venturing out to be holding my first craft stall this coming weekend and really need to get my costing's sorted.

Does anyone have a simple costing calculation so that I can work out the wholesale price and also the retail price of items?

Regards
Andrea

Savvy_Sue

I am not sure there is a 'simple' calculation: some people might use a fixed markup from the 'raw materials', but really only you know the time involved, and that's usually what adds value.

At this stage, if I've understood you right, I wouldn't worry about a wholesale price. Work out what each item costs, eg if a cushion takes you an hour to make, and the materials were £10, then that's at least £25 each. If someone wants 12, you could offer a discount.

leon103

Hi

Thanks for your reply. I've just been kind of guessing my mark up prices but obviously marking up to make a profit but I'd really like some way of calculating this more accurately if I'm selling direct to a customer or if I were to wholesale my goods to suppliers - I already have interest from businesses but need to get my costings better calculated. I wondered if there was a tool to help me do this really, instead of asking my husband "how much could I sell this for"?

Thanks
Andrea

Savvy_Sue

leon103 wrote: »

I wondered if there was a tool to help me do this really, instead of asking my husband "how much could I sell this for"?

:rotfl: good luck with that: my DH wouldn't have a clue how much was a fair price for a custom cushion!

credit_crunch

hi everyone
i have recently been looking into a possible new business idea.
basically i have noticed a shop unit for sale or rent & thought it would make a great newsagents.

i currently work full time so i know i would have to give up my job to work at the shop.

i am trying to look into figures etc but can someone help me out & where i should i even start?

i have no idea on how i would even look at profit, stock, start up costs etc

i no this is probably coming across as very naive but it is just an idea & i am trying to gather as much info as i can before i decide to take it any further

any help, opinions & info would be greatly appreciated

angel13

credit_crunch wrote: »

hi everyone
i have recently been looking into a possible new business idea.
basically i have noticed a shop unit for sale or rent & thought it would make a great newsagents.

i currently work full time so i know i would have to give up my job to work at the shop.

i am trying to look into figures etc but can someone help me out & where i should i even start?

i have no idea on how i would even look at profit, stock, start up costs etc

i no this is probably coming across as very naive but it is just an idea & i am trying to gather as much info as i can before i decide to take it any further

any help, opinions & info would be greatly appreciated

start with your budget then you need to know the rent, rates and any other outgoings (ie maybe £5000 to set store up depending on if you have family members who can help you.) then you need to budget for however many full time or part time members of staff you will need. work out how many you will need approx then the wages so this is your starting point.

you then need to locate suppliers for the items you wish to stock and find out trade price to you and then the RRP. you then need to work out if the difference (if the items you stock sell) is enough to cover the monthly outgoings, a wage for yourself and of course the staff wages.

also depending on how you get some of the stock (cash and carry maybe?) you will need consider getting a company van to get some of the stock. bearing in mind when you are out doing this you need enough staff in shop to manage in your absence.

does the shop have a flat you could live in? if so and you currently pay rent that can be a saving as you would then only need an income for yourself which is for bills and food initially as you will not have to worry about rent.

thats the main things i can think of.

credit_crunch

angel thank you very much.
i own my own home (negative equity), however the shop does have 1st & second floor offices - i dont know if i can take the unit on its own, or if i have to take the 2 offices as well. the rent is £9500 p.a & i have contacted the agent to see about the offices etc.
when i first started talking about it, i had thought if i bought it, i could look into converting the offices into 2 flats as they have separate entrances, i could then rent these out to recoup some £££
can i convert them while renting? or am i majorly jumping the gun? at the minute it is all what ifs etc!
my fiance's dad is a builder so he will deal with any work, and my dad is a decorator. my oh has a van, but i was planning on working full time until the shop was up & running & allowed for more staff. my brother is keen to get involved so i know he would help out when/where possible.
i need to get started with all the costings, and a viewing of the premises to see if it is feasible for everything that i have in mind
thanks again