Young Entrepreneur's starting mobile catering business

Savvy_Sue

THAAWT said:

I have two 16 year olds (17 this year) and are looking to set up a mobile food van. my question is how we can go about them taking card payments without having a business bank account (as they are under 18)
They currently run a small confectionary business from home and are registered with hmrc etc (and currently take bank transfer or cash) but its the payment side of things for a mobile catering van as not everyone carries cash these days

Another thing for them to research: where are they going to park the trailer when not in use? Note that if you are in social housing, there may be a clause against parking commercial vehicles on your drive or outside your home. Probably less problem if you have a garage. 

And where are you going to store stock / prep food? As well as the food hygiene issue, if you're storing stock at home then your home insurance needs to know, and you will have to cover it separately. You may have already covered this with their confectionary business, but worth mentioning. And again, landlord or mortgage company probably need to know you're running a business from home.

I don't want to be too discouraging, mind you. Recently found a stall selling poffertjes, started by one brother and then the other joined in. They'd started young, although probably over 18! I think their first vehicle turned out to be a disaster / unroadworthy, Dad had to come and rescue them, but they'd learned from that experience and now seem to be doing very well! 

CKhalvashi

Savvy_Sue said:

THAAWT said:

I have two 16 year olds (17 this year) and are looking to set up a mobile food van. my question is how we can go about them taking card payments without having a business bank account (as they are under 18)
They currently run a small confectionary business from home and are registered with hmrc etc (and currently take bank transfer or cash) but its the payment side of things for a mobile catering van as not everyone carries cash these days

Another thing for them to research: where are they going to park the trailer when not in use? Note that if you are in social housing, there may be a clause against parking commercial vehicles on your drive or outside your home. Probably less problem if you have a garage. 

And where are you going to store stock / prep food? As well as the food hygiene issue, if you're storing stock at home then your home insurance needs to know, and you will have to cover it separately. You may have already covered this with their confectionary business, but worth mentioning. And again, landlord or mortgage company probably need to know you're running a business from home.

I don't want to be too discouraging, mind you. Recently found a stall selling poffertjes, started by one brother and then the other joined in. They'd started young, although probably over 18! I think their first vehicle turned out to be a disaster / unroadworthy, Dad had to come and rescue them, but they'd learned from that experience and now seem to be doing very well! 

It should be possible to apply to store the vehicle outside from the social landlord.

I worked with the Mayor of a local town during Covid to promote and encourage small business and assisted with this multiple times. It should not be that difficult.

THAAWT

Savvy_Sue said:

THAAWT said:

I have two 16 year olds (17 this year) and are looking to set up a mobile food van. my question is how we can go about them taking card payments without having a business bank account (as they are under 18)
They currently run a small confectionary business from home and are registered with hmrc etc (and currently take bank transfer or cash) but its the payment side of things for a mobile catering van as not everyone carries cash these days

Another thing for them to research: where are they going to park the trailer when not in use? Note that if you are in social housing, there may be a clause against parking commercial vehicles on your drive or outside your home. Probably less problem if you have a garage. 

And where are you going to store stock / prep food? As well as the food hygiene issue, if you're storing stock at home then your home insurance needs to know, and you will have to cover it separately. You may have already covered this with their confectionary business, but worth mentioning. And again, landlord or mortgage company probably need to know you're running a business from home.

I don't want to be too discouraging, mind you. Recently found a stall selling poffertjes, started by one brother and then the other joined in. They'd started young, although probably over 18! I think their first vehicle turned out to be a disaster / unroadworthy, Dad had to come and rescue them, but they'd learned from that experience and now seem to be doing very well! 

Savvy Sue, thank you so much for your extremely helpful points, lots are ones we have come across, but a couple we hadn't thought of, so really useful, thank you again!

Storing the trailer wouldn't be a problem
They are actually leaning towards a dessert (ice cream)? trailer and so food would be able to be stored in the trailer. But yes separate cover if needed.
Councils taking a % wow!! Haven't come across this.... wonder how long it will be before it moves here, that is very cheeky!

The more i looked into it, the more i am leaning towards me not being a director or anything (due to UC, i just want to keep it completely separate from me)
So we are thinking (not ideal, but better than completely putting it on hold) that they will have signs up saying cash only, any leaflets, social media ads etc a little note saying the same so people know what to expect, also again maybe mentioning it before anyone places an order? (they would be trading in the same areas each week so people 'should' get used to it?  I mean i'm a big believer in keeping cash alive myself.  And then when they hit 18, they can add the card payment option.

I don't know if i'm being naïve about the whole thing (this is all new to me) but i really want to keep their dream alive and yes we are learning along the way.  The hard work they put in setting up the confectionary business and the hurdles with HMRC due to their age, but we got round it.

Again, thank you so much, honestly all input is greatly appreciated