Set up a new business - What next?

Lesleyanne

Hi everyone!

So, I have recently set up a new business working from home called 'Clean Bytes'. I basically remove viruses / spyware and malware from people's PCs and laptops - as well as repairing and installing operating systems and generally cleaning up their computers to make them run faster.

Now, I'm currently unemployed and on some benefits - but I am also studying for a Computing degree via the Open University.

So far, business-wise I have done the following:

- Created a Facebook Page

- Designed a website

- Created accounts on Twitter & Google+

This morning I registered as a sole trader online via HMRC

Now, I'm just wondering what I need to do next (if anything!) I don't really have any outgoings as yet as I already have the tools I need at home. I have already completed two jobs, with another on the way. I'm just wondering if registering as a sole trader will interfere with my benefits (child tax credits, working tax credits (partner) and housing benefit?

I charge between £5 and £15 per job, depending on what I need to do.

I hope that's enough info for you all & haven't confused anyone! :rotfl:

Thanks in advance

Lesley

pleasedelete

Get professional insurance?

Owain_Moneysaver

Inform your house insurers - you have customers' computers in your house which increases the risk of theft above that of a normal domestic dwelling, so it is a material fact that must be disclosed.

Likewise if you carry a customer's computer in your car you must have business insurance for the vehicle.

Digbeth_Court

It sounds obvious, but make sure you take the time to build up a decent network of contacts on Facebook/Twitter/Google+, stay in touch with them, and whenever possible provide a few computing hints and tips that are likely to get retweeted and gain you new followers. The service you're offering is something that many people will be interested in, but you need to be proactive in letting them know you're out there.

motorguy

Lesleyanne wrote: »

I charge between £5 and £15 per job, depending on what I need to do.

You're charging way too little for this to be a viable business. Any trade you do get will be because you are the cheapest not because they value your service. You'll find it hard to increase your rates once the realisation that your business isnt profitable kicks in.

Minimum charge should be probably £30 for the first hour, then maybe something like £20 per hour thereafter.

Have a read at this thread if you havent done so already...

https://forums.moneysavingexpert.com/discussion/701077

motorguy

Small one liner is your best bet in your local paper, plus look for 'free' advertising boards in local filling stations, news agents, shops and libraries.

Get cheap business cards printed up and ask anyone who you do do work for to pass some on to friends and family members.

Actually before i go any further its all in that other thread.

googler

pgilc1 wrote: »

You're charging way too little for this to be a viable business. Any trade you do get will be because you are the cheapest not because they value your service. You'll find it hard to increase your rates once the realisation that your business isnt profitable kicks in.

Minimum charge should be probably £30 for the first hour, then maybe something like £20 per hour thereafter.

Have a read at this thread if you havent done so already...

https://forums.moneysavingexpert.com/discussion/701077

Go straight to post #124 in that thread.

motorguy

googler wrote: »

Go straight to post #124 in that thread.

Indeed. People think its easy, but its not.

The whole thread is worth a good read though.

Savvy_Sue

Lesleyanne wrote: »

This morning I registered as a sole trader online via HMRC

Now, I'm just wondering what I need to do next (if anything!) I don't really have any outgoings as yet as I already have the tools I need at home. I have already completed two jobs, with another on the way. I'm just wondering if registering as a sole trader will interfere with my benefits (child tax credits, working tax credits (partner) and housing benefit?

Two things: one is that if you don't expect your profit from this to be more than c. £6000 in the current tax year, you could ask for a Certificate of Exemption from paying s/e NI.

Second is that this is potentially going to make a complete and utter mess of your HB if nothing else, talk URGENTLY to your local council about what they require you to do wrt declaring additional income when you are self employed.

I don't know enough about child tax credits and working tax credits, but you also need to speak to them about how they work. If they work on a 'previous year's income' basis, then you're going to have fun next year, when they decide you've been overpaid and stop one or both of those benefits.

Keeping VERY accurate records is essential.

Although, having said that, I agree with those who say you are undercharging, and I can't see how you're going to make any profit at this at all. Especially when someone comes back and says you messed their computer up or lost their data or ... or ... or ...

simplydevine05

You absolutely must tell all the people you get benefits from. Depending on how many hours per week you (and your partner if you have one) work you may get more working tax credits. You have 30 days I think to tell them or risk losing tax credits completely-and they will find out as they are hmrc that you have registered with. Be warned, if you are self employed and make no profit for a second tax year, tax credits can be stopped. You do need insurance in case anyone sues you for "breaking" their computer, to cover customers belongings if they are kept in your home. You also need to tell your home insurance company and mortgage lender or landlord. Being self employed at home is not as easy as people think but I find that it is worth the long hours and low pay!

motorguy

simplydevine05 wrote: »

I find that it is worth the long hours and low pay!

Only with hope of it improving....