Start up money.

dooglesu

Hi all,
I am a long term user, but haven't really posted much. I wanted some advice please.
I am starting up my own counselling practice from home and need some cash to purchase what's needed to set the room up which should be under £1000. I have just started to look into credit cards but I currently have no solid income apart from casual agency work. I'm quite anxious about spending out without a set date for income but passionate about the work. Any advice would be welcome.
Doogle.

jonesMUFCforever

What do you require that will cost £1000?

Have you informed your home insurer that you will be conducting a business from home and taken out public liability insurance?

dooglesu

Decorating and furniture, I will be careful not to be extravagant and I am always careful with spending but I will need some quality items, particularly decent chairs. I already have insurance and will inform who needs to know in due course. Currently I am at the stage of looking to finance the room set up. Other parts of the business costs I have been doing gradual spending and keeping track for the accounts side of things but the final spend will be higher than I can do gradually. So I will need to do a big spend in a short amount of time once all the other parts are set up such as website etc.

jonesMUFCforever

Have you got a business plan? A business loan or overdraft might be a better option than a credit card.
Good luck with the venture.

dooglesu

I hadn't thought about an overdraft, that maybe worth thinking about. I have had one in the past as a buffer. No business plan, no. But trying to go step by step in logical small spending slices.

Thank you EsIwUlO depending on your idea of success people I already feel content. Hopefully as a counsellor I can give some support to others too. Just money to be spent in the mean time!

jonesMUFCforever

Not wishing to put a downer on this if you have no business plan how will you convince anybody that you can afford to borrow any money?

Another thing that came into my mind - if I required counselling for anything would I be happy to go to their home? The answer from me would be a no.
Their office or suitable commercial/public place - yes.

OuterNet

I have been to a few counsellors, and they all operated from home...

You could probably get interest free credit on the furniture from the retailer. Also look at second hand office furniture stores, they often have really good quality leather chairs etc for a third of the price.

Google start up loans, if you are under 30 or over 50 there are organisations that offer help to start a business including loans and grants.

Also try contacting the local business start up organisation, they may be able to offer you support on making a plan and getting finance, even if you don't need a fancy business plan, it can still be worth getting down on paper some goals about what you will charge and how you will market your services.

Good luck!
:T

dooglesu

Thanks guys,
I agree that I probably won't convince banks without a business plan, which is why I haven't gone down the small business loan route.
I have found a student account from Lloyds which offers 0 % overdraft, as I am doing a BA I think I will qualify for that so will look into that further. I prefer the idea of not going down the route of evidencing the business to banks or local organisations for financing as I have no solid way to prove projected annual income. However looking for funds for myself I have a solid credit history, so that would be a better route I think? I do work occasionally part time and have a financially supportive partner.
I already offer counselling in 2 public places through charities, working from home offers a different environment some people prefer jones but I appreciate your comments. Thanks.

pvt

jonesMUFCforever wrote: »

if I required counselling for anything would I be happy to go to their home? The answer from me would be a no.

Jonesie, Like OuterNet, I've found myself at very appropriate facilities in private houses on a number of occasions, and always been very happy with the treatment I received. Be it CBT or Podiatry, I placed more stock in who referred or recommended them, including whether my PMI had vetted them and would cover their costs.

dooglesu

Thanks for the feedback, glad to have some positive reviews of counsellors working from home.
I'm still not entirely sure which route I can go down to finance this, but it does seem that credit cards aren't as simple as I thought they'd be.
I used to have them thrown at me before I had the kids- who'd have known children are so expensive!

chattychappy

Worth building up a credit history anyway - even if it's just putting household spend onto a sub-prime card and paying off in full each month.

Then later you'll be able to get some of the 0% BT cards and/or 0% APR on purchases (typically for 12 months) cards.

I financed my own business on credit cards for a while and I know others who have done the same. It is often cheaper than business finance (if on a promo deal) - and takes less management time. I remember helping a friend apply for a bank loan. Her business plan was fine. Bank wanted the plan in a different format - so we changed it. Then they wanted other stuff. Cut along story short, she borrowed the money off a friend and got moving. Paid the loan back in 6 months. It is very difficult to get business finance without a track record - and even then can be tricky.

With personal borrowing you are personally on the hook. With business borrowing, the business is on the hook. That's a good reason for not mixing the two if you operate as a Ltd company (though typically banks require personal guarantees). I expect in your line of work you won't be operating through a company anyway - so you're on the hook. However you do it, though, keep all receipts (itemised ideally) and proper records.

About the decent furniture: For a while I worked in a semi-serviced office facility. So many start-ups came and went. Often they spent a very long time (and money) setting themselves up: printing names cards, choosing the colour of the room, buying coffee machines, organising a website, buying furniture, designing logos etc. Easy to convince yourself that you are "in business" by busying yourself in this way. But really it's just burning time and money.Try to keep it simple and focus on getting punters through the door. Feather the nest from profits.

Good luck!