Handmade gifts online biz

jonnyb1978

I am thinking about a business selling small handmade items over the internet.
I have a supplier already lined up if i go ahead with this. There will be no initial outlay for these items as any profits will be shared at a set percentage.

How do i go about doing this?
1.Firstly i would need a website to display these items which has a checkout etc and the option of payments. I am prepared to pay for this. Does it cost for people to pay via Visa etc.
2. But i would also like to do this as a trial run. First thought are an ebay shop for minumum costs.
3.Would i need to register the business so its all legit. What happens after a month or 2 and its not working??
4. How would i advertise. And get links to my website on other people sites

Any help appreciated.

Astaroth

1) Yes, it does cost to accept credit cards. You have many choices from the no up front/ monthly fees but high per transaction fee options like Paypal or Nochex to the much lower per transaction fee but setup and standing charges of a full merchant account

2) Ebay is an option but the sort of people buying on ebay (and the whole process of running a business) are different to other ecomm websites and so just because you successfuly run something on one doesnt automatically mean it will or wont work as a stand alone business

3) You have the option of registering as a limited company but it is not required to be "legit". You do however have to tell the tax man that your doing this and are now self employed. If you form a limited company and it doesnt work you would then have to dissolve it. If you are a sole trader then you just tell the tax man again

4) There are many options on advertising from using google adwords to having an affiliate scheme via link/ banner exchanges with associated but non-competitive companies (eg your selling gifts so exchange links with someone selling cards)


The first thing any potential new business needs to do is to write a business plan. If you have a look at the business link website they have templates and advice on how to do this... you can also make a free appointment with your local centre and chat your ideas/ plan through with one of their advisors

havekidsamskint

I am thinking on very similar lines but another question I have not been able to find the answer to is this -

if I work from home I need to inform my mortgage lender & house insurer but if like to OP I won't know for a few months if it is going to work when do I need to notify them?

sorry for being cheeky & hijacking but hopefully any answers will help us both

thanks

smitty2702

Hi

have a look on Mr Site, they do cheap website packages, you have to do it yourslef but its pretty easy, I have no experience and i managed to do one for my sons pre-school. They have their own email addresses and you can do payments from paypal

Claire

Astaroth

You need to check the terms of your contracts - for your home insurance you are most likely still covered even if you dont tell them other than any equipment related to your work/ company (ie so your PC, phone etc)

You may also need to inform your council as in some areas they will make you pay business rates on your property rather than council tax if you are running a company from home.

At the end of the day it is up to you if you want to run the risk of not telling people and be hit with fines/ having to immediately repay your mortgage etc or not.

LittleWoman_3

Astaroth wrote:

You need to check the terms of your contracts - for your home insurance you are most likely still covered even if you dont tell them other than any equipment related to your work/ company (ie so your PC, phone etc)

You may also need to inform your council as in some areas they will make you pay business rates on your property rather than council tax if you are running a company from home.

At the end of the day it is up to you if you want to run the risk of not telling people and be hit with fines/ having to immediately repay your mortgage etc or not.

You can take out special "working from home" insurance which will cover all the stuff the home insurance does not cover. As long as you don't have people coming to your home and you don't employ more than (I think) 2 people you don't have to inform the council or your mortgage lender. Lots of Accountants work from home and don't have any problems. Some even have "office/sheds/converted garages" they work from! It is only if you have a least 2 additional employees, and regular visitors then you do have to make sure you don't run into problems at a later date.

richt71

havekidsamskint wrote:

I am thinking on very similar lines but another question I have not been able to find the answer to is this -

if I work from home I need to inform my mortgage lender & house insurer but if like to OP I won't know for a few months if it is going to work when do I need to notify them?

sorry for being cheeky & hijacking but hopefully any answers will help us both

thanks

If you are having customers visit your home for your business I'd advise letting both know cos god forbid something happens while a customer is in your home/business their could be serious implications.
If you're just usuing a room to work from home then I think you'll find the mortgage company don't care unless you're welding or something else that could potentially burn your house down. In relation to your insurance, it'll go up if you get visitors but like me they may give you a discount for being in the property more time - think I saved about £8 on £108 a year so nothing outstanding but still.

Wiggly_Worm

try https://www.etsy.com - not sure if it's exactly right for what you want, you'd better take a look yourself. Crafty stuff.

kimbatty

Myself and partner both run our own businesses from home and as long as you don't have lots of people visiting then you don't need to inform the council or your mortgage company.

I have Public liability insurance because I sell products but apart from that I havent had to pay additional insurances like the home insurance etc. My products and stock are covered with the PLI policy

You just need to be careful when coming to submitting your tax returns because if you're claiming a high percentage of your home bills as business costs then it can impact on whether your home is classed as a home or business premises. Bet to consult an accountant when you come to do the tax return as they will know exactly what percentages are acceptable