Martin Lewis: My advice for budding entrepreneurs, why a good idea can be a nightmare

MSE_Eesha

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

Read Martin's "Martin Lewis: My advice for budding entrepreneurs, why a good idea can be a nightmare" Blog.

Please click 'post reply' to discuss below.

Plaster

I think we all have dreams of running a successful business, being your own boss and reaping the rewards, investing all our time and energy into getting our great ideas off the ground. I have dipped my toe into going into business with a partner, we were both Directors, he has the skills i have the admin. Great idea as he has been a sole trader for over 7 years. Unfortunately we have been stopped at the first post. He has a bad credit history. I can open a business banking account in my own name if he is removed as a director and now have no idea which way to turn. Do we pay him as an employee, or have him as the majority shareholder taking just dividends. Can i add him back onto the company as a director at a later date once the business is up and running or is this counted as fraud.

tacpot12

Do you have an agreement yet as to how either of you will get out of the business if you ever need to? This is a fundamental point that needs to be agreed before starting a business with ANYONE.

Are you happy you understand why your partner has a bad credit history?

If he is not barred from being a director, you may be able to find a bank that will offer your company a business bank account so long as your partner is not a signatory on the account.

The article here might be of use: https://moneysavinganswers.com/business/banking/how-to-open-a-business-bank-account-with-poor-credit-history/

The_Miser

Good advice but the problem is probably "what do I want to do?". Facing redundancy some years ago I found a low volume magazine in the library giving details of small businesses which others had done. My extracted list came to about 50 entries calling for little expenditure but a lot of hard work (in those days pubs would pay £500 to have their smoke encrusted ceilings cleaned and painted - a weekend night job but there are only 6 pubs nearby!). Not sure if MSE allows this (I have no connection whatsoever) buthttps://millennialmoney.com/ways-to-make-money/ gives 100+ ideas and a lot of suggestions to consider. A variant on the Uber driver is (IF you are totally honest etc) as a courier delivering documents for solicitors, collecting children from airports and delivering them to UK schools, adults to hotels by pre-arrrangement etc. Whatever you do, check on the laws etc involved

pennyforthem

I'm guessing someone does not believe in the free movement then!


I went to a business lecture in the city one of them admitted her business had gone under, another was stating she did not mind if people copied her designs, but she believed they were breeching her copy right is they used the same material that she had not made herself! I could go on but I think you see my point, be careful who you listen to, and no I do not mean the post was not good advice.

Jenna_Appleseed

Blog link in first post goes to a 404 page - oops