Advice on son - graduate with his own business

Tiggy223

Hi CAB,
Wondered if I could get some advice on my son's situation.
He recently graduated from University and has maintained his job in a clothing store that he carried throughout University. He has recently set up his own marketing agency and on average works 16-20 hours at the clothing store on £6.20 per hour and then will work around 30-40 hours a week on his business and will usually take a salary of around £75 per week (it isn't big enough to take any more).

The clothing store cannot up his hours and his rent is £475 plus bills and council tax. He lives in Brighton and I know that rent is typically quite expensive. He is well into his overdraft at £1,6000 and can't afford to live. We have had to send him money so that he can buy his grocery shop. He is incredibly stressed and now wondering if he's doing the right thing by setting up a business. We are incredibly proud of him and know that he's going about it exceptionally well but there's got to be some help available!?

He applied for housing benefit online and was told he didn't qualify. Wondered what kind of help and support is available to him and what he needs to do to get it?

Thanks,

Worried mum x

Pennywise2012

I think she means grocery shop as in the Friday Big Shop, not that he owns a grocery shop....

OP - I can see from your post that you are very proud of your son, but the bottom line is that at this moment in time his business is not doing 'exceptionally well' - he's only paying himself a third of minimum wage, and he's getting further into debt each day.

The most urgent thing to address is his income - it needs to be higher. If he has his heart set on owning his own business, then he may have to look at reducing the amount of hours he puts in, and allowing it to grow at a slower speed, almost treating it like a hobby/leisure activity that may go somewhere in the future. Because as it stands, it's not a viable business that can support him.

With more free time, he can then either take on a second part time job, or look for a full time job to replace the clothes shop job. That way, he can afford to live, which takes the pressure of him to make a go of the business - which could end up being more productive with less stress!

He clearly has a very strong work ethic and lots of initiative, which is great, and with a secure day-to-day income I'm sure he'll go far! Good luck x

somethingcorporate

Lovely post Pennywise, thank you

pleasedelete

46- 60 hours a week is not a lot to work when setting up own business, could he up his hours at the shop to full time and still do 30-40 hours on business. That would be 65-75 hours a week over 7 days. When starting a new business hobbies and free time go out of the window.

Wywth

Tiggy223 wrote: »

Hi CAB,
Wondered if I could get some advice on my son's situation.
He recently graduated from University and has maintained his job in a clothing store that he carried throughout University. He has recently set up his own marketing agency and on average works 16-20 hours at the clothing store on £6.20 per hour and then will work around 30-40 hours a week on his business and will usually take a salary of around £75 per week (it isn't big enough to take any more).

The clothing store cannot up his hours and his rent is £475 plus bills and council tax. He lives in Brighton and I know that rent is typically quite expensive. He is well into his overdraft at £1,6000 and can't afford to live. We have had to send him money so that he can buy his grocery shop. He is incredibly stressed and now wondering if he's doing the right thing by setting up a business. We are incredibly proud of him and know that he's going about it exceptionally well but there's got to be some help available!?

He applied for housing benefit online and was told he didn't qualify. Wondered what kind of help and support is available to him and what he needs to do to get it?

Thanks,

Worried mum x

I would suggest, if he is so stressed by his debts and apparent lack of money, you should ask him to post his complete SoA on the DFW board.
I'm sure with a complete SoA from him, the posters on the DFW will be able to offer some very useful advice for him.

More useful information can be found on the Citizens Advice self-help website www.adviceguide.org.uk or by calling the Citizens Advice Consumer Helpline (0845 4040506) or contacting your local CAB office.

Tiggy223

Is he entitled to any sort of benefits or grants? What's the CAB's take on this?

x__Indigo_x

pleasedelete wrote: »

46- 60 hours a week is not a lot to work when setting up own business, could he up his hours at the shop to full time and still do 30-40 hours on business. That would be 65-75 hours a week over 7 days. When starting a new business hobbies and free time go out of the window.

if you read the OP's post she says they cant up the hours

i would recommend he go into his local CAB.

As a debt advisor i would complete a full financial statement based on his current situation. I would also suggest he changes his bank to another provider so that he can deal with the debt without his wages getting wrapped up in the overdraft.

Has he got other debts other than the overdraft?

Turn to us he can do a benefit check based on his income. http://www.turn2us.org.uk/benefits_search.aspx