Security Business

kaylu

Hi my partner has just inherited his grandads security business and I was hoping someone could give us some advice on where to start.

We are able to take over the business as it currently stands but his grandad still worked in the old fashioned way and we'd like to try to build the business hopefully in the future rather than keep it sole trader and make sure we're doing everything correctly for this day and age.

I have 10 years experience and qualifications in Accountancy and working with businesses from a tax, paye, accounts point of view so thats helpful for the admin side. My partner has got his SIA Licence and we're currently reading up on the SIA website.

We also have an appointment with the local chamber of commerce but I was wondering if anyone could offer any advice whatsoever on anything we might be missing?

Thanks in advance

Savvy_Sue

When you say you have inherited, I take it Granddad has died.

Did he bequeath the company formally, or are you just trying to pick up the business where Granddad left off?

You say Granddad was a sole trader, which I think makes the situation easier. Did he have employees / premises / contracts to supply services? I suspect anything legal will have to be renegotiated if you want to rely on it, so you will need a solicitor, one who deals with commercial 'stuff' and understands the issues.

Mistral001

I assume that the business is quite a successful one at present and that the reason the OP wants to change the business from being sole trader to a Ltd company is to save paying as much NI as is presently being paid. However I think that loophole in the tax laws is going to be closed in the future so it might not actually save you any money.

bengalknights

Hello first ask yourself the question do you understand the business you have inherited?

If not might be best to take on advice from those with an area of expertise within this industry

Once you are past this point everything else is mere simplicitys of paperwork and sales

Setting up as a ltd company should allow you to restrict liabilitys and tax compared to the setup at moment

paddyrg

Do you have experience in the security sector? I suspect it's one of those industries where credibility and the strength if your word and who you know will count for 90% of your business.

I worked in pubs in Birmingham many years ago. There were two 'security' companies in town, each affiliated with a different 'businessman', and it was prudent to go with one or the other rather than becoming a target for both.

I'm sure the industry has changed, however it might be worth bearing in mind where your credibility comes from - eg did the grandfather have a deal with any of the local firms, etc. It'll depend on the sector you're providing security for, but for instance nightclub door staff might get more interest than corporate car parking.

kaylu

Savvy_Sue wrote: »

When you say you have inherited, I take it Granddad has died.

Did he bequeath the company formally, or are you just trying to pick up the business where Granddad left off?

You say Granddad was a sole trader, which I think makes the situation easier. Did he have employees / premises / contracts to supply services? I suspect anything legal will have to be renegotiated if you want to rely on it, so you will need a solicitor, one who deals with commercial 'stuff' and understands the issues.

Hi

I used the wrong word I think! His grandad hasn't died he sold his home and plans to retire with what is left after buying a smaller house. I should have said he's passed the business on.

He has no employees at present its just himself, no premises and one ongoing contract. I think he was happy with this one contract because it was less work for him obviously with him being older now and not wanting to take on too much which is why I think he doesn't take on subcontractors/self employed anymore.

kaylu

Mistral001 wrote: »

I assume that the business is quite a successful one at present and that the reason the OP wants to change the business from being sole trader to a Ltd company is to save paying as much NI as is presently being paid. However I think that loophole in the tax laws is going to be closed in the future so it might not actually save you any money.

Hi

Its not just to save money, I have a Limited Company and its so much better for me and so much more benefits as the business grows.

Obviously for the time being hes going to stay as a sole trader and try to gain more contracts then as the business grows we plan to go Limited but our main priority at the minute is building the business and hopefully employ people and branch out to other security areas in the future.

At present its working on an industrial estate locally. I've worked with many security businesses from an accounts point of view and they covered everything from security guards for Warner Brothers working on Fast and Furious film in Liverpool to doormen to 24 hour manned patrol.

My partner is good at what he does however he's never owned a business before and isn't very confident speaking to people in a business way and doesn't know where to start with marketing,contracts etc so this is why I need to gain knowledge in the security industry so that I can guide him to start getting more clients and to ensure we're doing everything legally.

I just want to make sure we are running the business carefully for this day and age too and how it works when marketing the business and what happens when someone is interested?

For me, when a potential client sparks an interest I go out to them and give them a consultation and I know what I'm saying/doing/giving them etc.

How this works for a security business I don't know, maybe I'm overthinking it but is it the same? Do you offer a consultation and speak about your services, prices etc? Do other security businesses do this or is it a more relaxed thing?

kaylu

bengalknights wrote: »

Hello first ask yourself the question do you understand the business you have inherited?

If not might be best to take on advice from those with an area of expertise within this industry

Once you are past this point everything else is mere simplicitys of paperwork and sales

Setting up as a ltd company should allow you to restrict liabilitys and tax compared to the setup at moment

My partner has worked for the business in the past for over 10 years so he understands the business and he can do the job however its mainly the gaining contracts, marketing the company, what we should be charging etc and how other security businesses work that we're not very confident about.

Also, as his grandad slowed the business down to just the one contract to keep him going we'd like to build on this and hopefully employ people again once it grows.

Savvy_Sue

OK, well that makes life simpler if Granddad hasn't died.

I'd say the first step was to talk to the people the current contract is with, introduce himself, and get a new contract signed! make sure he understands the current agreement, and that it's sustainable!

Savvy_Sue

BTW, running your own business for the first time is a steep learning curve, and many people find that 'the business' part of it is outside their comfort zone. Especially 'selling yourself' or selling the service. it's also one of the few parts you can't easily contract out.

Mistral001

Who runs the business now ie. who makes the final decisions on the direction of the firm and where to spend money? Who is the boss?