Starting a business to help people save money

Savvy_Sue

silvercar said:

I also think that the elderly (as the group I talk to a lot) would be reluctant to pay out money in the hope of reduced bills.

And IME, they'll also talk a lot, and comment a lot, on the size of their bills, without actually responding to any of the suggestions made by (in my case) family, and carry on doing the things which are costing them money. 

My own example is that for many years my mother used an Amstrad Emailer, which was a very basic system for sending and receiving emails through a phone line. Every time she checked to see if there were any new emails, she was phoning what must have been a premium phone line. And she checked multiple times per day. Her phone bill was SHOCKING, especially considering she did not make phone calls because she was too deaf. But she couldn't just check twice a day ... even though it was mostly just us emailing her, and we were all out at work all day and not doing personal emails in the office! 

When that facility was withdrawn, we gave her a basic laptop and set up Gmail there. There was a LOT of hand-holding needed, but we got there in the end, and the phone bills reduced to little more than line rental. 

Obviously this is not to say that 'the elderly' all need a lot of hand-holding, but I can't help feeling that those who don't will just crack on with their moneysaving, without outside assistance. 

PHK

tacpot12 said:

I think the main issues are:

• that you are competent to give the advice you are giving (among other things this means that you must be thorough in your research, but you can reuse research across client providing that you check it is still current)
• that you understand what you can't give advice about and make sure you respect these boundaries (you can still help your clients by referring them to people who can help, but you need to be careful about not recommending other advisers as you might then be perceived as being responsible for their performance)
• that you understand how you are allowed to collect and use personal data (you will need a regsitration with the Information Commissioner)
• you might need insurance if you are going into someones home, in case you injure anyone or cause any damage
• you will need to keep some records to show that your advice was reasonable in the client's situation
• if you are going to act for a client, you need a very clear and precise mandate from the client - I would recommend that in all cases, changes are either made by the client or by a profession (in the case of improvements to their home)
• you will need to figure out a pricing structure. For simplicity, it would be sensible to have a percentage figure in mind and to pre-agree this with the client. Once you have a reputation and are having clients referred to you, you could ask for a retainer fee (e.g. £50) to cover your reserach in case you cannot find any way to save the client money. However, in the short term, you will need to vet your clients to check that they are a good candiate for your services, i.e. it is highly likely that you will be able to save them enough to make it worth both your whiles. If you are to receive a percentage of how much the client is expected to save, I would recommend asking for payment as soon as the changes have been made that will produce the savings, while being careful not to guarantee that they will save that amount or any amount at all. This might sound unfair, but you need to avoid creating a situation where a client is entitled to a refund in the client doesn't make a saving for reasons that are beyong your control. 

Good luck! It sounds very worthwhile. 

I think it’s worth pointing out that some of what the OP wants to do will require professional qualifications and authorisation from a regulator. Even acting as an introducer to other firms will require registration. 

silvercar

PHK said:

tacpot12 said:

I think the main issues are:

• that you are competent to give the advice you are giving (among other things this means that you must be thorough in your research, but you can reuse research across client providing that you check it is still current)
• that you understand what you can't give advice about and make sure you respect these boundaries (you can still help your clients by referring them to people who can help, but you need to be careful about not recommending other advisers as you might then be perceived as being responsible for their performance)
• that you understand how you are allowed to collect and use personal data (you will need a regsitration with the Information Commissioner)
• you might need insurance if you are going into someones home, in case you injure anyone or cause any damage
• you will need to keep some records to show that your advice was reasonable in the client's situation
• if you are going to act for a client, you need a very clear and precise mandate from the client - I would recommend that in all cases, changes are either made by the client or by a profession (in the case of improvements to their home)
• you will need to figure out a pricing structure. For simplicity, it would be sensible to have a percentage figure in mind and to pre-agree this with the client. Once you have a reputation and are having clients referred to you, you could ask for a retainer fee (e.g. £50) to cover your reserach in case you cannot find any way to save the client money. However, in the short term, you will need to vet your clients to check that they are a good candiate for your services, i.e. it is highly likely that you will be able to save them enough to make it worth both your whiles. If you are to receive a percentage of how much the client is expected to save, I would recommend asking for payment as soon as the changes have been made that will produce the savings, while being careful not to guarantee that they will save that amount or any amount at all. This might sound unfair, but you need to avoid creating a situation where a client is entitled to a refund in the client doesn't make a saving for reasons that are beyong your control. 

Good luck! It sounds very worthwhile. 

I think it’s worth pointing out that some of what the OP wants to do will require professional qualifications and authorisation from a regulator. Even acting as an introducer to other firms will require registration. 

I thought the refer a friend option that a lot of providers offer, would be all that OP would be getting. I can’t see those who are tightening their belts being willing to pay in advance for services like this.

PHK

For example , they mention insurance. You’d need to be either FCA authorised or an Appointed Representative. 

Mistral001

When you mention named companies, is when you run into problems, even the most naive customer will see you as not impartial.  Even if you mention a comparison site name, it could be construed that you are not being impartial.  Also as has been said it only takes one friend or relative to find that one of the suggestions you made, was not the best deal for complaints to arise against you.  As for getting insurance, forget it, not one insurer will be interested. 

DullGreyGuy

JamesM_2 said:

I live in an area with a lot of elderly people who I'm assuming will not be getting the best value for money in a lot of areas of their lives.

I'm planning on starting a small business to help these people and to make a little for myself in return.

Ideas that I've had so far are:

* Buying a thermal camera so that I can show the customer where their house is losing heat and offer economical suggestions to improve it.

* Looking at their utility bills and seeing if I can get them better offers (and potentially benefiting from cashback from topcashback etc. in the process, though I'm aware that I may not qualify as it won't be for my details).

* Ditto for insurance.

* Suggest ways to save water/electricity/gas

I wouldn't want money upfront for any of this, rather that they give me a percentage of the amount they save once they have made a saving.

I'm mostly intending to do this to help people, rather than make money but it would be nice to make a little.

My main concern is what can I do legally, without having qualifications.

Ideas of how I could work this and take payment would also be appreciated.

I am already registered as self-employed.

Many thanks.

You're going to need approvals from regulators, paying fees to the FCA, FSCS, FOS. Then you will need TOBAs from the businesses involved and many like confused.com won't allow it because it will breach their TOBAs so you are dealing with insurers directly without any software to get quotes from multiple firms at the same time unless you want the added cost of licencing some broker software, naturally then you won't have direct sellers like Direct Line available to you. 


There is going to be a big exposure to claims of abuse so will need exceptional record keeping to prove the reasons why your recommendations were what they were and prove they weren't coloured by whatever commissions you may receive. You're going to need a decent budget for lawyers to draw up and maintain terms of agreement. Terms can't stop people trying to sue you so you need PI insurance too.

If you want to add financial advice as well then it will be 3x as hard. 

You'll spend a lot of time on paperwork and regulatory returns and unless this is a full time business may struggle to even cover fees let alone turn a profit

silvercar

DullGreyGuy said:

JamesM_2 said:

I live in an area with a lot of elderly people who I'm assuming will not be getting the best value for money in a lot of areas of their lives.

I'm planning on starting a small business to help these people and to make a little for myself in return.

Ideas that I've had so far are:

* Buying a thermal camera so that I can show the customer where their house is losing heat and offer economical suggestions to improve it.

* Looking at their utility bills and seeing if I can get them better offers (and potentially benefiting from cashback from topcashback etc. in the process, though I'm aware that I may not qualify as it won't be for my details).

* Ditto for insurance.

* Suggest ways to save water/electricity/gas

I wouldn't want money upfront for any of this, rather that they give me a percentage of the amount they save once they have made a saving.

I'm mostly intending to do this to help people, rather than make money but it would be nice to make a little.

My main concern is what can I do legally, without having qualifications.

Ideas of how I could work this and take payment would also be appreciated.

I am already registered as self-employed.

Many thanks.

You're going to need approvals from regulators, paying fees to the FCA, FSCS, FOS. Then you will need TOBAs from the businesses involved and many like confused.com won't allow it because it will breach their TOBAs so you are dealing with insurers directly without any software to get quotes from multiple firms at the same time unless you want the added cost of licencing some broker software, naturally then you won't have direct sellers like Direct Line available to you. 


There is going to be a big exposure to claims of abuse so will need exceptional record keeping to prove the reasons why your recommendations were what they were and prove they weren't coloured by whatever commissions you may receive. You're going to need a decent budget for lawyers to draw up and maintain terms of agreement. Terms can't stop people trying to sue you so you need PI insurance too.

If you want to add financial advice as well then it will be 3x as hard. 

You'll spend a lot of time on paperwork and regulatory returns and unless this is a full time business may struggle to even cover fees let alone turn a profit

Plenty people operate on social media by posting links to companies offering deals and being paid via the referral fees that the big companies offer. They have business social media accounts, so are clearly operating as a business. They don't have any regulatory approvals. They just post that they have seen eg a great fixed rate for electric on Octopus, use my referral link and we both get £20. They must make a sizeable income from doing this.

martindow

silvercar said:

Plenty people operate on social media by posting links to companies offering deals and being paid via the referral fees that the big companies offer. They have business social media accounts, so are clearly operating as a business. They don't have any regulatory approvals. They just post that they have seen eg a great fixed rate for electric on Octopus, use my referral link and we both get £20. They must make a sizeable income from doing this.

Some people on social media are probably not too concerned with the legalities of their operations, but that is different as these people are upfront about what is being offered.  They are not claiming that they are providing the best deal possible for a particular person's circumstances.

DullGreyGuy

silvercar said:

DullGreyGuy said:

JamesM_2 said:

I live in an area with a lot of elderly people who I'm assuming will not be getting the best value for money in a lot of areas of their lives.

I'm planning on starting a small business to help these people and to make a little for myself in return.

Ideas that I've had so far are:

* Buying a thermal camera so that I can show the customer where their house is losing heat and offer economical suggestions to improve it.

* Looking at their utility bills and seeing if I can get them better offers (and potentially benefiting from cashback from topcashback etc. in the process, though I'm aware that I may not qualify as it won't be for my details).

* Ditto for insurance.

* Suggest ways to save water/electricity/gas

I wouldn't want money upfront for any of this, rather that they give me a percentage of the amount they save once they have made a saving.

I'm mostly intending to do this to help people, rather than make money but it would be nice to make a little.

My main concern is what can I do legally, without having qualifications.

Ideas of how I could work this and take payment would also be appreciated.

I am already registered as self-employed.

Many thanks.

You're going to need approvals from regulators, paying fees to the FCA, FSCS, FOS. Then you will need TOBAs from the businesses involved and many like confused.com won't allow it because it will breach their TOBAs so you are dealing with insurers directly without any software to get quotes from multiple firms at the same time unless you want the added cost of licencing some broker software, naturally then you won't have direct sellers like Direct Line available to you. 


There is going to be a big exposure to claims of abuse so will need exceptional record keeping to prove the reasons why your recommendations were what they were and prove they weren't coloured by whatever commissions you may receive. You're going to need a decent budget for lawyers to draw up and maintain terms of agreement. Terms can't stop people trying to sue you so you need PI insurance too.

If you want to add financial advice as well then it will be 3x as hard. 

You'll spend a lot of time on paperwork and regulatory returns and unless this is a full time business may struggle to even cover fees let alone turn a profit

Plenty people operate on social media by posting links to companies offering deals and being paid via the referral fees that the big companies offer. They have business social media accounts, so are clearly operating as a business. They don't have any regulatory approvals. They just post that they have seen eg a great fixed rate for electric on Octopus, use my referral link and we both get £20. They must make a sizeable income from doing this.

Affiliate marketing is very different to a 1-2-1 session with a customer where you are making personal recommendations to them, completing applications forms for them etc.

You have to also look at the industries of the affiliate marketing, general retail is unregulated and unless you are a !!!!!! site or selling illegal products most of the sponsoring companies won't give two hoots who you are or in what context the link is provided. Regulated industries like banking and insurance are very different, they do vet who's using their links, in what context, what the surrounding text says etc unless the company in question is itself FCA regulated. Insurers have had disciplinary actions because they had affiliate marketeers use their links surrounded by inappropriate text on third party websites. 

Take this website, it used to be regulated but now its an Appointed Representative of MoneySupermarket, so banks, insurers etc will be more relaxed about it including their affiliate links in their websites etc because its MS that gets the hefty fine if its deemed to have given inappropriate advice, financial promotion etc. 

PHK

silvercar said:

DullGreyGuy said:

JamesM_2 said:

I live in an area with a lot of elderly people who I'm assuming will not be getting the best value for money in a lot of areas of their lives.

I'm planning on starting a small business to help these people and to make a little for myself in return.

Ideas that I've had so far are:

* Buying a thermal camera so that I can show the customer where their house is losing heat and offer economical suggestions to improve it.

* Looking at their utility bills and seeing if I can get them better offers (and potentially benefiting from cashback from topcashback etc. in the process, though I'm aware that I may not qualify as it won't be for my details).

* Ditto for insurance.

* Suggest ways to save water/electricity/gas

I wouldn't want money upfront for any of this, rather that they give me a percentage of the amount they save once they have made a saving.

I'm mostly intending to do this to help people, rather than make money but it would be nice to make a little.

My main concern is what can I do legally, without having qualifications.

Ideas of how I could work this and take payment would also be appreciated.

I am already registered as self-employed.

Many thanks.

You're going to need approvals from regulators, paying fees to the FCA, FSCS, FOS. Then you will need TOBAs from the businesses involved and many like confused.com won't allow it because it will breach their TOBAs so you are dealing with insurers directly without any software to get quotes from multiple firms at the same time unless you want the added cost of licencing some broker software, naturally then you won't have direct sellers like Direct Line available to you. 


There is going to be a big exposure to claims of abuse so will need exceptional record keeping to prove the reasons why your recommendations were what they were and prove they weren't coloured by whatever commissions you may receive. You're going to need a decent budget for lawyers to draw up and maintain terms of agreement. Terms can't stop people trying to sue you so you need PI insurance too.

If you want to add financial advice as well then it will be 3x as hard. 

You'll spend a lot of time on paperwork and regulatory returns and unless this is a full time business may struggle to even cover fees let alone turn a profit

Plenty people operate on social media by posting links to companies offering deals and being paid via the referral fees that the big companies offer. They have business social media accounts, so are clearly operating as a business. They don't have any regulatory approvals. They just post that they have seen eg a great fixed rate for electric on Octopus, use my referral link and we both get £20. They must make a sizeable income from doing this.

The FCA are currently taking bunching these social media types through court because they were acting without authorisation.