starting a business, need help.

Hammyman

danelliott wrote: »

They are independent contractors and will be paid for sales they do, the money to pay them will come from the £100 the company will be paid for each sale put through.

They will be independent contractors, this is not illegal, its the way the industry works, i know, ive worked it for years.

The IT industry thought the same right until IR35 was enforced. At the end of the day, if they do work solely for you as self employed, if they aren't able to send anyone they want in their place or they aren't able to have complete control over the hours they work or they aren't liable for any liabilities then they are employees no matter how you word it.

Many many companies have worked as you described only to find a massive bill for employers NI for several years worth. Also the govt are currently investigating umbrella companies too. The whole stack of cards is close to coming tumbling down.

You may get away with it, you may not. Basically, its a "your mileage may vary". But don't assume that because you're getting away with it that you're right.

I have in writting, the contracts which show that these clients want us to work for them.

Thats great.:D:D It'll bolster your chances of funding considerably.

The agents hired by existing agents will be paid from our company at the same rate the initial contractors will be paid at.

Again, I urge you to take caution with this.

I have in witing the pay we will receive will be 2 weeks from submision of sales to the client, so the 30 daything doesnt count for this type of business. In some cases it will depending on the client, this is why we have chosen a client who will and can pay us within 2 weeks.

What you have in writing and what the accounts payable departments do is two completely different things. Anyone who has ever run a company supplying goods or services to other companies will tell you exactly the same. Work out on funding with no income at all for 60 days. Remember that even if you've not been paid, the people working for you will still need paying.

paulwf

Start up costs are minimal, as i will only need enough moneyto source an office for the 1st month and equipment for the office which in fairness will oly really consist of a pc, photocopier, fax, desks chairs and stationary. we will be paid from our client after 2 weeks from start day and will be paid per sale we make for them. the gents will be paid oncewe have been paid, they will work and get paid on there 2nd full week, this is the aggreement.

OP something here really puzzles me. If you use the computer you're already typing on and get a combined printer/fax/copier for under £100 your total startup costs for the office are going to be under £500. Office space costs very little or you can start by working from home.

Solicitors may require £500 up front then the rest payable within 28 days. Setting up a Ltd is as little as £25.

So...you need £500 up front and £500 put on a credit card and a 28 day solicitors bill. You will get your first payment within 2 weeks so can pay off the solicitors and credit card in plenty of time. Surely the two of you can find £500 and have a £500 credit limit on a card? You're going to be managing a £1.6 million turnover after all.

If you are really that tight for money can't the pair of you set to work straight away, then within 2 weeks you will have all the money you need to hire staff?

BTW have you asked yourself why your client would subcontract to you when they can make £85 per sale by hiring someone for £15 a sale when you make it sound like you have no additional work to do? I fear that in reality you'll find your sales level is very much lower, and that could be a problem because if your staff only make 3 sales for a full days work they'll be well below min wage. You need to do a trial with just the 2 of you, unless your figures are spot on your staff won't make enough money and your business will collapse.

Let's get this straight: for an investment of £1,500 by the end of month 2 you will have ramped up sales to a level of £165K net profit per month going forward, and you think that's a conservative estimate! OP do you really believe your figures?