Some specific questions

chrischambersuk · 14-01-2005, 10:58 AM

Dear All

Thanks for the answers to my previous questions, I have managed to move on a little way now - but inevitably that has led to more questions, I have made a list so as to not keep posting. Thank you for takingthe time to read this.

Overview

I am setting up an online surf and boardwear store, am still really at conceptual stage but wish to sell a wide range of brands, popular and up and coming. I have very little capital to start, but do have premises sorted.

Questions

1. I have managed to get on the ticket list for a couple of surf trade shows in February - can anyone give me a run down on what to expect, what to say, or not say, to potential suppliers (bearing in mind i am not yet trading, nor have even registered my business at companies house). Also, they are for strictly trade only, and one said they may need proof on entry such as business cards etc - am i breaking any rules if i simply get a few printed up? will this be enough to get in? i don;t want to burn any bridges with future allies.

2. how much should i expect to pay to get my company (i want to be ltd.), registered and set up from companies house? are there any ongoing costs? how long could it take?

3. can someone provide a bit of an idiots guide to VAT in practice? i've read all the guides, but don;t quite understand it in application. for instance, as a mail order business buying and selling apparel, do i need to register for VAT right away? any help on this generally would be appreciated....

4. i have opened an account at PC world for all my equipment purchases (though these are not much), but i am not a fan as a consumer of pc world, and reckon even with business discounts, i can get stuff cheaper on the net. i only need a laptop, phone system and relevant software as far as i can see... are there better places to go? and VAT issue again, how does that work?

5. website. i have to have this designed, built and hosted for me. what is the normal process for this, will one company offer me the whole package. i need a very slick, ecommerce site, hosted and managed, with the ability to change bits as and when required. what would i expect to pay for the initial design and build and then hosting and maintenance/updating from then on? can anyone make me an offer... (check out www.shore.co.uk for a simialr kind of site, but i want a better looking one!)

6. i am 23, just out of uni and have just about cleared my overdraft, so basically i have nothing to my name except a van. i know banks are not keen to lend unless i can match the money to some ratio (i've heard about 4 to 1), is there somewhere i can go to raise finance with very little behind me. i etimate i may need 7,000 initially to get office equipment and website installed, and then god knows how much for my starting supply of stock... which i doubt , as a startup, i can buy on credit.

7. outsiders. is there a case for hiring an accountant or similar from day one, i think i can handle the books of a small business, but want it all properly done from the start, especially if to be a limited company. maybe software can help?

sorry to have such a list, but i have been saving them up over several weeks. i hope i can get soem help from some of you guys, and am greatly looking forward to sharing my mistakes and triumphs with other start ups.

thank you very much.

peterjhale · 14-01-2005, 11:22 AM

I can answer a few straight away

* To register a company, type in something like "register limited company" into google - it should cost about £60 to do everything

* You only need to register for VAT when your projected yearly income reaches a limit - try www.hmce.gov.uk

* You probably don't need a "slick" website - prepare one that is quick to load and easy to buy from. Hosting should be no more than £100 per year. Design and ecommerce is the cost. Paypal set up is free. Worldpay is about £300. All take about 3-4% as a transaction cost. You'll need both.

In terms of financing - people may do stuff for you for a % of your business.

Buying stock is going to be your major issue as most will require all monies upfront as you have no credit history (as a business)

See Joel's website for financing

chrischambersuk · 14-01-2005, 12:54 PM

Joel's website? where can I find this?

inbakumar · 14-01-2005, 09:34 PM

Thanks, Peter.

Chrischambersuk take a look at this link below for some useful info:

http://www.teneric.co.uk/forums/show...=1704#post1704

As Peter said above, setting-up the company wouldn't take that long. You could buy an "off-the-shelf" company (i-e ready made) for a small price and then what you will have to do is to rename it according to your wishes and appoint directors / secretary. Therefore do some reasearch on the name first including availability of the domain name(s).

The other thing you have to do is to prepare a business plan. This site has a lot of information and help. Please use it.

At the trade shows, ask suppliers what they can do for start-ups like yourself. They may ask you questions on your likely sales volumes, target customer profiles, marketing methods etc. If you have done your home work already (i-e prepared a detailed business plan) then talking about this wouldn't be a problem. Anyway, they attend these trade shows primarily to attract new customers. Ask them what sort of credit facilities they would be prepared to offer for a company like yourself. It may be possible with some of them to 'drop-ship' the goods direct to your clients on receipt of funds from your company. Sure it would add a few days delay in delivering the goods to the customers but would avoid financing stock at the early stages.

Start work on your web site as soon as possible. For ideas check-out how Amazon is doing it. I'm sure many others on this forum are better qualified to advice you on how to generate targeted traffic so I leave it to them

.

For business finance infromation see link below to our website. Take a look at the "working capital" section in particular.

Best of luck.

inbakumar · 16-01-2005, 02:08 PM

Hi,

If you need additional motivation, take a look at the following article on the Sunday Times, which appeared today.

http://www.timesonline.co.uk/newspap...441455,00.html

Regards,

Naomi · 16-01-2005, 04:40 PM

Can't really add any more than everyone else really. Other than to say ring the Inland Revenue because they will be a good source of information for your VAT questions. If I remember rightly the ceiling is £60K before VAT comes into effect but you might as well start as you mean to go on so talk to them. You will also have to let them know about your role as a director of a Ltd company as that has tax implications and you need to fill in a form.

There are loads of company formation places. I used http://www.companyformationsgb.co.uk/ and they were really helpful. I think it makes sense to use one of these companies because there are loads of things can could come back to bite you if you are not careful and don't forget as a director you are responsible for ensuring you fill in all the right forms, inform all the right people etc,etc.

On the same note find your nearest accountant and go talk to them - unlike solicitors they don't charge for talking. Mine was really helpful, he showed me how to set out my books and told me when to come back to him with them, how much to expect to pay etc,etc. the one I saw also did bookkeeping, PAYE etc, So he was a bit of a one stop shop if I had needed it.

Contact Business Link, they are a source of info, some of it is outdated but it'll at least give you an idea. They will also be able to point you in the direction of possible funding. They helped me apply for a soft loan, but it is for women in business so probably not much use to you!!

Just one more thing because it's forefront in my mind right now. You need to have one director and a company secretary. So if you want to save money have yourself as company secretary/director and choose a second non-exec director BUT draw up something that says exactly wht you expect of your other director and what part they play in the business. My business partner has just walked out on me so my mother is going to replace her but I have drawn up a simple contract that says she has nothing to do, earns no money and is not entitled to any share of my business. Believe me it saves arguments later! Oh and don't make the mistake my sister did - a company secretary is an important role it isn't just a fancy name!!

Good luck with the business, hope you find funding.

Naomi

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Mike H · 25-02-2007, 08:20 AM

Chris,

1) Can't help on that point.

2) You can set a company up for as little as 40 quid. The on going costs will be about £15-£30 and these relate to the filing or your year end return to Companies House. There maybe other ongoing work i.e. company secretarial i.e. subscription of shares etc but it isn't difficult so can be done by yourself. The company secretarial can be outsourced if needs be for about £100 a year.

3) Have a look at this link http://www.businesslink.gov.uk/bdotg...3859245&r.s=tl.

4) I would have a look on google. Again with regards to the VAT the basics are. If you are registered then the cost to you is the excluding VAT price if your not it will be the VAT inclusive price.

5) I have contacts that will be able to help in this area, but I'm not sure of a price. Please PM me if you need anything further

6) There are a number of ways of gaining finance. The company can lease the equipment to start of with. For the amount you are looking at it is also possible for you to take a personal loan and then introduce it to the company by way of share capital or a directors loan.

7) An accountant can help and should really be brought in at the beginning. But I'm biased since I am one. If you are prepared to do the day to day book keeping then all the accountant should do is sit behind you to help with the start up etc and once the business is growing they should be there for any ad hoc question you have. They should also (obviously) deal with your accounting and tax requirements. I've heard a lot about bad accounts charging £300 plus an hour which in my view is a lot. Charging should be based on the value of work that is being done.

If you need anything else please let me/us know

Regards

Mike H