starting a business exicited but scared is this normal

bbabs

burbs wrote:

I started up when i was 23 and had the exact same worries as you.

If you did not have these worries then you would be in trouble as you would probably be overconfident and end up getting yourself into trouble.

I would say it is going to be hard work and is going to rule your life from now on but the rewards are so much sweeter than they are when you work for someone else.

Tax really is the hardest part of running your own business and as someone has said if you cannot get your head around it, as i couldnt, get yourself an accountant. Its a weight off you mind and lets you focus on the more important things.

If you love you business then you will have a ball and should be ok. Just dont take on too much risk in the early stages, i think i was told 70% of new businesses fail in the first year, only risk what you can afford to lose. Not trying to be the bearer of bad news, just keep your feet firmly on the ground though.

Best of luck

Thanks for that,

Got some advice from my local enterprise trust about tax, they suggested putting about 30% of your monthly take into a seperate account I think I might try to do this providing I make enough.

I do have a passion for what I do and having been doing a similar job for the last 2 years just know I would love it more when it is me that is benefiting from all the hard work.

lush_walrus

Huge good luck, it is a very scary thing to do, but give it a couple of years and it will also be the best thing that you have ever done.

One suggestion which I followed was that in the early days if other peoples labour is cheaper than the rate you can be paid then consider employing someone while you work until business picks up and is established.

That worked for me, I started an EAs, shortly after I qualified as an architect. For me I could employ someone for x amount while I could earn X times 2. It meant that although I had invested all of my money I could also guarantee some money at least coming back in. It was very hard work, I worked full time then was in the EAs all weekend, every weekend! But now it was the only way for the first 6 plus months while it set up.

Good luck, dont give up and be prepared to work harder than you have ever worked. But without a doubt you will enjoy it more than any other job you have had.

bbabs

sertav wrote:

I've just started my own biz as well!

Some pointers, from my experience...

1 - Patience, loads of it!, is essential. things usualy don't go as fast as we want them to... especially in the beginning!

2 - Make sure you get all the bureaucracy out of the way first. Sole Trader or Ltd Co.? If the latter, Companies House stuff is a doddle these days but watch out for VAT as it can take some time.

3 - Get insurance(s) for yourself & business. Are you employing someone else? If you are register with the Revenue for PAYE purposes (0845 60 70 143). Employers Liability Insurance is mandatory but make sure you shop around extensively. The quotes I got varied wildly!!

4 - An accountant is a must! Again, shop around. Actually go and meet them. Have a chat to see what sort of experience they have dealing with businesses in your field. Outsource your payroll. Your accountant will usually do this a for a small-ish fee (per payslip).

5 - Still on the accountant check if they have any value-added services available, like personal and business tax planning. Sometimes they have it in-house, sometimes they outsource it.

6 - Time! make sure you manage it properly as it will be your most precious commodity.

7 - Did I mention that you need to be patient?

By the way, you mention a shop. What biz is it?

Exciting times ahead but be careful. Good luck!

Thanks that is all really useful, I am going to need liability insurance for sure. I am trading as a sole trader. Got a few leads on insurance just need to follow them up. As I am opening a sandwich/ deli-bar i`ve got lots of running about trying to get the best price from different suppliers but have got loads of leads for that too. I am a pretty patient person and also very organized or so I think I`m sure I will be in for a few surprises along the way but hey I`m up for it so just hoping it all works out for me

competitionscafe

Hi - I see you are in Scotland, are you in Edinburgh? If so let me know where you are and I will come and try your food. Getting a good accountant is good advice and don't forget how important marketing is too. You may find the Scottish and UK business forums very helpful for mutual support and advice:

Scotland:
http://www.businessbuzz.org/

UK:
http://www.ukbusinessforums.co.uk

I am sure you will enjoy it - I became self employed (e-commerce related, nothing to do with food) about 5 years ago and I don't think I could (or would want to) ever work for somebody else again.

Debt_Free_Chick

bbabs wrote:

Thanks for that,

Got some advice from my local enterprise trust about tax, they suggested putting about 30% of your monthly take into a seperate account I think I might try to do this providing I make enough.

No, no no - you MUST put this away from each week's takings. You'll need this to pay your tax bill. Your takings are "gross" so you need to "deduct" tax. About 25% of your takings will be OK if you end up paying basic rate tax i.e. you earn less than approx £35,000. If you earn more than that, then, yes about 30% should be about right. Your running expenses will be deducted from your takings at the end of the year, so you'll probably find you've put away too much, but don't worry about that for now.

You can't spend all your takings - you must "deduct" tax. You'll get a hefty tax bill in 12 months time and you'll have to pay it all in January 2007. Your tax bill will be for all the tax due between now and April 2006 PLUS an account payment for the next tax year. I've got a bill for £19,000 to pay - £13,000 for last year AND £6,000 as an on-account payment for this year :eek:

You can get FREE advice from your local tax office - no need to pay an accountant just yet. You can book an appointment here. Let the tax office give you some basic information and then decide what you want your accountant to do. I suggest you learn how to do basic bookeeping yourself - there's nothing "special" in this, it just requires discipline and organisation. Of course, you could pay an accountant to do the bookeeping, but I feel this is paying someone overqualified to do a job that can be done yourself. If you do your own books, you can just pay an accountant to prepare your accounts and give you tax advice.

As well as saving for your tax, remember to put some by for those weeks when your takings are low - you're bound to have the one or two weeks like that. Have you thought about what will happen if you're ill and can't open the shop? What about when you want to go on holiday, have a day off or need to see your GP etc?

Hope this helps

MORPH3US

I would be nervous, but don't worry!!! Seriously you'll be fine. Just make sure you have plenty of people around you that can supprt and advise you. There are plenty of people like that on here but your friends and family too.

Would you care to disclose what you will be selling at this shop and where it is, you might find your first customers on here. (IGNORE THIS - just read the thread properly and have the answers now!!!)

If you need any advice then feel free to ask. Don't get too bogged down in the day to day running of the shop (although this is very important) and forget about managing the accounts / marketing your business etc etc.

Again, best of luck!!!

M

Tony_H_3

Create a simple Excel spreadsheet, on this sheet list the items you sell, thier price & quantity sold. This way you will be able to better forecast how much you charge for each item to cover ever increasing costs.

Did you realise that by adding say 10p to one type of sandwich would cover your annual advertising costs? Did you know that by adding 3p to crisps would cover the additional cost in business rates? Seriously, make sure you are fluent in forecasting.

Savvy_Sue

Debt_Free_Chick wrote:

No, no no - you MUST put this away from each week's takings. You'll need this to pay your tax bill. Your takings are "gross" so you need to "deduct" tax. About 25% of your takings will be OK if you end up paying basic rate tax i.e. you earn less than approx £35,000. If you earn more than that, then, yes about 30% should be about right. Your running expenses will be deducted from your takings at the end of the year, so you'll probably find you've put away too much, but don't worry about that for now.

You can't spend all your takings - you must "deduct" tax. You'll get a hefty tax bill in 12 months time and you'll have to pay it all in January 2007. Your tax bill will be for all the tax due between now and April 2006 PLUS an account payment for the next tax year. I've got a bill for £19,000 to pay - £13,000 for last year AND £6,000 as an on-account payment for this year :eek:

Also remember that if you employ anyone you'll be deducting their tax and NI contributions as well, and will have to pay that to HMRC on a regular basis as well - they take a dim view of late or non-payment!

For a small payroll it is possible to DIY, lots of help available from HRMC for new and small employers, and you can apply to make payments on a quarterly rather than a monthly basis. BUT whatever you do make sure you have the money for them!

I am sure I once posted a cautionary tale about my own experience with a small payroll and making the payments to HMRC but I can't now find it - anyway, my message is 'put the money aside! whether you can afford it or not!'

bbabs

competitionscafe wrote:

Hi - I see you are in Scotland, are you in Edinburgh? If so let me know where you are and I will come and try your food. Getting a good accountant is good advice and don't forget how important marketing is too. You may find the Scottish and UK business forums very helpful for mutual support and advice:

Scotland:
http://www.businessbuzz.org/

UK:
http://www.ukbusinessforums.co.uk

I am sure you will enjoy it - I became self employed (e-commerce related, nothing to do with food) about 5 years ago and I don't think I could (or would want to) ever work for somebody else again.

Hi thanks for those links had a wee peek and looks really helpful.

Splashie

Horray for you:)

I just sarted being self employed in may and I think people make out it is almost immpossible but as as long as you keep asking questions from the business gateway advisors , the IR people (they offer traing by the way) and here at MS you will be grand!

best of luck and I will try and hint your shop down in the Edinburger soon

Splashie