hows my business doing?

perth_worker

After being made redundant is early June, I have started working for myself (as a tutor) and what started off being just a hobby is now providing my only source of income. Just wanted to run my finances pass someone to see how you think i'm doing and perhaps some guidance.

So a bit of a breakdown (month by month):

Income:
April – 12 hours of work and made £300
May – 46 hours of work and made £1100
June – 71 hours of work and made £1700
July – 73 hours of work and made £1500
August – 120 hours of work and made £2800...best month so far
Total so far – around £7500

Outgoings – minimum really...just fuel (no more than £40 per week) advertising cost (£40 a month) and I have probably spent £100 a books so far.

AP007

YOU are running a business, so how do you think you are doing?

If you want to pay me I can let you know!

AP007

perth_worker wrote: »

Outgoings – minimum really...just fuel (no more than £40 per week) advertising cost (£40 a month) and I have probably spent £100 a books so far.

Probably? Or you know the figure? Aren't you keeping a cashbook or ledger or something?

What about TAX AND NI what provision are you making? Any?

googler

Registered with HMRC as self-employed?

Kept accounts?

Where do you tutor? In your home? Does your home insurance cover its use for business purposes, such as including public liability should an accident befall a client?

Etc etc

paddyrg

Sounds reasonable enough - some months will be fatter than others, and if you can work out a model where you can get extra work in those lean months, you've got a viable business. Look at add-on services, for instance selling past papers, good extra books, cash commissions if kids get any of their friends to sign up, etc.

jacques_chirac

Are you still in Perth or back in the UK?

nimbo

do you need PLI if you are in the homes of others - we had it for about £50 a year - but it was a different type of business (market stall)....

worth looking into though to make sure you are covered if needed to be...

persa

You really should have a business plan, which includes financial projections. If not... Never too late to get into the habit. Compare your actual results to your budgeted ones.

Your projections should factor in the seasonality of your work. When you compare actual to budgeted, you should identify any discrepancies and analyse why - were your assumptions wrong? Or has a competitor stolen a chunk of your client base? Etc.

arbroath_lass

jacques_chirac wrote: »

Are you still in Perth or back in the UK?

???

The referendum is next year.

emsywoo123

arbroath_lass wrote: »

???

The referendum is next year.

Perth Australia?

Naf

All I would say is watch your bottom line; the more hours you're working the less you're making per hour (going on your figures). Which is fine as far as (I presume) discounting block bookings and the like. But you need to know how low you can't go below.
My in-laws run a B&B, and for a while would let rooms at £15-£20 per night after negotiating multiple rooms/nights. Then they did their costings & realised that £25 was cost-price. Your costings won't be so simple, but make sure you have them.
If £20 per hour was your bottom line, for example, then in July you did lots of work for essentially no money.