Starting up side business

tp1234

Hi


I would like to start up a small, part-time to begin with, business that I would work on in my free time whilst working full time in my current employment. The business will be designing and selling wedding invitations & favours.


I am planning on setting up a website to market and sell the product and will more than likely use PayPal as way of accepting payment. Is PayPal the easiest and most trusted way to do this or should I be looking at other providers?


I shall design, market the product and customise the product for the customer then send it away to be manufactured by a different company in the UK. As I expect customers to pay for the goods up front, it should just be a case of receive £200 pay manufacture £100 and keep £100 for example.


I'm planning to fund the initial start up myself, paying for website etc, so don't plan on taking out any loans etc and shouldn't need to for at least first 2-3 years.


I basically want to know everything I need to about starting the business (sole trader, LTD etc), paying tax, accounts, everything really.


Can I start website and marketing and see if I get any custom before registering business etc.


Any and all help is appreciated.

InsideInsurance

PayPal is fine for a small business. A few may question why you arent taking payment on your own site but at least PP is something they know and basically trust.

Speak to an accountant about Sole Trader -v- Ltd company and how you'd later transition. Most do a free 1/2hr meeting but evidently a good part of it will be them selling their services to you.

Most the former Business Link pages are now on https://www.gov.uk/business

Sophie-1

You could try the following sites for information
http://www.infosite4business.co.uk/
http://www.startupdonut.co.uk/
Good Luck

londonTiger

i recommend just starting the business right now. Your business is going to revolve around a website first and foremost and that can be done quite cheap.

It's a low overhead business, so it's less risk than a business on the high street.

paypal = just stick to paypal, you're doing business with consumers and they're not bothered about paypal. If your transactions are large (say £200+ each) then I would use something else more secure. If you have serious turnover I would move to a merchant to save money (at least £2K a month)

ltd/personal, a lot of wedding organisers and others in the undustry are one-man-bands. it's not uncommon to find people trading under their own name. I suggest you stick with that setup for now until you get bigger.

Ltd company has at least £500 overhead per year in accounting and administration. Plus £300+ in bookkeeping fees if you're not keep on doijng the books yourself.

Trading under your own name as a sole trader and doing self assessment is free.

NYCSavage

tp1234 wrote: »

I basically want to know everything I need to about starting the business (sole trader, LTD etc), paying tax, accounts, everything really.

As a general rule of thumb (although there is always the exception to the rule) you should go Ltd if your company will incur debts (ie loans, credit etc) and stay as a sole trader if bills/stock/etc are paid up front.

Hope this helps

betterlife

Hi, i am a self employed wedding invitation designer and maker. ive been self employed since the beginning of july last year, and my business supports my whole family (2 adults and 4 children)
I use paypal, as most people prefer to use it, (i get the occasional customer that might pay direct into my bank).
I have a ebay shop where most of my business comes from, an etsy shop, and word of mouth from previous customers.
Im wonder though why you are not considering printing the invitations yourself? the problem with getting them printed elsewhere if there personalised for the customer, your find most customers are wanting less than 100 invites, and a printing company will charge alot more for small runs (ive looked into this before) i have a professional printer at home, a very large desktop one, all personalised orders i print myself, however i do alot of photo props, and as these sell extremely well, i now get these printed locally as its more cost effective for me, i then just package them at home. I also find, that alot of brides leave thing till last minute, as a general rule, invites are sent out 3 months before the wedding, but i get brides buying invitations with only a few weeks to go before there wedding! so being able to print at home saves turning away orders, anyway feel free to private message me if you want any help

Spuggy200

You should go Ltd if there is a potential of being sued.

There used to be a 3-month grace period for start-up businesses from the HMRC. ie you can trade for 3 months before having to file as self-employed/company. I'm fairly sure that's still the case now.

InsideInsurance

Spuggy200 wrote: »

You should go Ltd if there is a potential of being sued.

Name a single business that has no chance of being sued?

Going limited does not give you unlimited protection against being sued. As a Director of a Ltd company you have responsibilities to ensure the company is run properly, you therefore may find a personal liability if your company is sued for something - hence we are seeing D&O insurance being bought ever more often by SMEs

Spuggy200

InsideInsurance wrote: »

Name a single business that has no chance of being sued?

Going limited does not give you unlimited protection against being sued. As a Director of a Ltd company you have responsibilities to ensure the company is run properly, you therefore may find a personal liability if your company is sued for something - hence we are seeing D&O insurance being bought ever more often by SMEs

Fair enough, I have insurance and a Ltd company. I was advised that insurance wasn't needed, but I know my business better than my accountant and felt it was worth the £20pm.

Either way, if the OP's wedding favours have a potential to cause harm/injury/illness depending on what they are, if they're food, keepsakes or whatever they are, there might be a chance of him/her getting sued. If they are paper invites and non-hazardous favours then there is less chance.

InsideInsurance

Spuggy200 wrote: »

I was advised that insurance wasn't needed, but I know my business better than my accountant and felt it was worth the £20pm.

I would be surprised if your accountant was authorised by the FCA to give advice on insurance. Many who work in insurance full time arent authorised to advise.