How to start a New Business

jazzyjustlaw

My partner would like to start up a new business but working in a legal environment I am concerned about the implications although as he is in debt we could do with more income.

Let me start at the beginning, he was a computer engineer and now a project manager and a good one he is too even though he does not have a degree he has climbed the ladder over the past 10 or so years.

In his spare time he helps out his friends with computer issues, he can help with application and the actual fixing of computers. Most have been successful but on one occasion a part was faulty from the manufacturer and that blew the hard drive which meant the part had to be replaced and so did the hard drive - please do not read much into that as I do not know much about computers I am just telling you what happened - luckily the manufacturer replaced both. My worries are:

1. How would we start a business with OH giving computer help.
2. Will his debts affect his ability to obtain any loans.
3. What type of insurance would he need to cover any damages?

What are am really asking is how do we go about this. I did a business law degree covering many elements but none actually included the business being started up. Bah Humbug!

Please help this poor little dum dum.

Mark7799

jazzyjustlaw wrote:

My partner would like to start up a new business but working in a legal environment I am concerned about the implications although as he is in debt we could do with more income.

Let me start at the beginning, he was a computer engineer and now a project manager and a good one he is too even though he does not have a degree he has climbed the ladder over the past 10 or so years.

In his spare time he helps out his friends with computer issues, he can help with application and the actual fixing of computers. Most have been successful but on one occasion a part was faulty from the manufacturer and that blew the hard drive which meant the part had to be replaced and so did the hard drive - please do not read much into that as I do not know much about computers I am just telling you what happened - luckily the manufacturer replaced both. My worries are:

1. How would we start a business with OH giving computer help.
2. Will his debts affect his ability to obtain any loans.
3. What type of insurance would he need to cover any damages?

What are am really asking is how do we go about this. I did a business law degree covering many elements but none actually included the business being started up. Bah Humbug!

Please help this poor little dum dum.

Not one that can be answered easily or quickly but I'll have a go...

1. Depends upon the legal status you choose - sole trader, partnership or company. Suggest you speak with businesslink https://www.businesslink.gov.uk (I've assumed you're based in England)
2. Providing they are debts and not CCJs or adverse credit info then they won't affect ability to obtain loans - what will be important will be the production of a robust business plan to demonstrate how the business could service any borrowings.
3. Public liability insurance will cover a lot of things - need to check the small print to be sure. Also need to ensure car insurance covers business use and if you're working from home it may be necessary to tell your house insurance providers.

As I said, this is only a start and need to be looked into more deeply. PM me if you wish.

Good luck

Mark

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tinalives

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tinalives

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jazzyjustlaw

Thanks all. I have another question. I am looking at preparing a business plan. Does anyone have any tips. For example, how can you forecast cashflow. I have no idea how many clients my other half would have at first and then how it would grow. How do people go about preparing a business plan. I have been on the business link website by the way but it is all still above my head!!

tinalives

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Mark7799

jazzyjustlaw wrote:

Thanks all. I have another question. I am looking at preparing a business plan. Does anyone have any tips. For example, how can you forecast cashflow. I have no idea how many clients my other half would have at first and then how it would grow. How do people go about preparing a business plan. I have been on the business link website by the way but it is all still above my head!!

It's a commom complaint on cashflow 'how can I tell what my sales are going to be?'.

A good way round this is to start with your expenses - your business plan should include items such as how you plan to market the business, you can research your other costs such as public liability insurance by getting quotes from companies - if you plan on adertising (e.g.) in the local paper ring them to ask what their rates are. You will have an indication as to how much your OH wants to pay himself etc etc and when you add all these figures together, this becomes your target sales/income figure.

The next question to think about is to break this down into how much work will have to be done to earn this figure - either per job carried out or earnings per week/month. You must now consider if this is an achievable figure - can you generate enough work to earn it?

Hope this helps

Mark