Advice needed

lauren1224

I know I literally must be mad.. I am currently working, but I will be a full time student from September. The reason I want to start a business is because it will be my stepping stone for the next stage when I leave University.

I am based in Wales, and will be in the University of Glamorgan. I should also mention I'm 22, not 18 like most students, having said that starting my own business is still a lot when going to study. I will not be alone however as I have many people interested in working with me.

Anyone know of companies in an around Wales willing to give advice etc to those wanting to start up. I knew this would be one of the best places to come for advice.

My idea is a service, it's not selling something, I can offer it online, it will mostly be done via internet. I will mostly need start up costs for advertising etc, as I have someone to make me a website and an accountant. It's not a skill only I have, I will be requiring the help of a few people to make it easier, and have acquired a lot of interest from those I have told so far.

If anyone would like more information from me please ask

paddyrg

Business Link Wales? Your age is unimportant, it will all hinge on your business plan and abilities.

But a word of warning - you say the business is a replicable online service, what is to stop me from doing the same and charging 10% less with a bigger promo campaign run from Hyderabad?

And you don't seem to have figures in mind for your website and accountant, if I were you I'd be looking to spend a grand or so on each to get you started (ecommerce websites - forget getting a freebie from some college student, if you want to be taken seriously, spend the money on professionals). Oh and maybe another grand or two for promotion? Depends on the service offered of course, but advertising costs real money.

lauren1224

It's not a freebie from a student, he is a highly professional programmer who has been doing the job for years. And the account doesn't need to be brought into the equation yet as this is all in the idea stages, which is why
I asked for the best places to go for advice.

There would be no way of charging less for it, its not something you buy. But I see your point and have taken the competitors into consideration, there are a few, but after doing my basic research they don't cover all the points I wish to, and people who have used their service have yet to have got what they signed up for.

As for advertising, again that is going to come later, I need firm things in place, more research and solid plans in place beforehand. I would like to have heard from someone in a similar situation that could recommend services they may have used that greatly helped them when starting out.

Thanks

paddyrg

Website, maybe your guy is perfect for it, just rely on there being real costs at some stage. Likewise any accountant/business administration. Which means having some startup cash - that's what I'm trying to say.

And remember even if your competition are not satisfying the exact profile your service will, if they start losing business to you, you can be sure they will adapt. Or maybe they don't, but someone sees you taking the lions share of the market - what's to stop them from doing the exact same? If it cannot be done for less, either you have no profit margin, or you don't have a grip on the business.

Hence my suggestion for Business Link Wales!

paulwf

A lot of new businesses require about 70-80 hours a week for the first year to get them off the ground. How much time do you think you'll need to spend on the business and how many hours can you spare as you'll have your studies which have to come first?

Don't rely on any friends helping you out or any favours from other professionals, after the novelty wears off these soon evaporate. I'm not sure from your post if you meant you had people interested in helping you or being your proper paid employees, but you'll only get good reliable help if they are proper employees that get paid on time.

I'm sorry OP but if I was going to be a student meaning no regular income and incurring debts the last thing I'd want to do is start a business which inevitably soaks up money and takes up every waking hours.

mitch161

ok i started out in same situation once. heres how i done it.

1 got a job that pays me money £200 a week.. i lived life on a budget only fit for someone on jobseekers.. (£50 a week) and put £150 into a pot as my investment capital.

6 months later i had a few grand of my own money that didt need to be paid back to any bank. it was free and clear.

banks love it if you can show you have a rainy day pot to pay them back if everything went belly up. but at your age as long as you have some backup money id go to businesslink as they have some start up grants for new businesses..

but as you say finances are only needed when your in the implimentation stages..

so back to the idea's side
if you are selling a service.. is it purely a online business selling advertising, or for instance a online advice service where people pay you for answering their issues online.

work out the practicale costs. IE man hours of work that goes into each service bought, for instance if anyone was to ask "what is the meaning of life. " and they want a 500 word essay as the answer it will cost more then a hour of time to answer the question. so you need to set costs per hour/service etc.

i can help more but without giving the whole idea away what category is the service? ie is it selling membership, selling a service where a employee would visit the customer to forfil the duties.

i dont need to know the knitty gritty such as selling a service to write essays for students. or selling employees to go to people to cut old grannies lawn or do ironing odd-jobs, but categorising it into:
selling employee services as a online typist.
advertising employees for in-home services
memberships
selling webspace

try wording it to help without giving the whole game away.

and by the way someone said whats stopping anyone else doing the same as you.. and honestly if you can do it, anyone can.
just check into the rivals why they havnt as there may be a reason. learn from others mistakes as it were.
i have done soooo many feasability studies on loads of different business types and oppertunities that if i sold my knowledge and time doing these by the hour id be rich.

Horace

Not wanting to put a downer on your idea but have you considered that the reason your competitors are not doing it is because the idea isnt feasible? I think you need to do a lot more research and as Mitch has said get a job and put money aside in a pot.

I started my business when I was on the dole so had zero money for advertising etc and I admit that I used my credit card which is something that I am loathe to do now. I also sell a service - selling a product is easier because people have something tangible to hold.

How about asking your University Careers Officer for advice and maybe tap into the Business Development Department at your Uni (they may call it Business Studies). Try Business Link too

You could also apply to the Princes Trust for funding as you are 22 and are in the right age range for them to grant money. It is my understanding that the Princes Trust also have business mentors who may be able to advise you.