Starting your own business - live webchat with Robert Ashton Weds 20 June 1-2pm

bikergran

A business via a website would be ideal for me (perhaps not right at this moment) any tips on building or producing a web site without it looking like my 5 yr old grandson had put it together? thanks Sue

Go somewhere like Wordpress, who will give you templates and make it really easy for you to build a website. In fact, so easy, your 5 year old grandson probably could do a really good job on your behalf.

The other benefit to sites like Wordpress is that they enable your new site to be very quickly found by Google because they host such a lot of online activity.

I am not a trained book keeper. There seems to be online help for everything these days - are there any online tools that you can recommend that help you to keep day-to-day records?

I have an idea for a social enterprise - which would be at least as much about meeting a need as making money (though I think we could make enough to cover our costs and reinvest eventually). Are there different rules for this? Where should I look for ideas on how to set up this sort of a business?

sneetch

I have been thinking about setting up a consultancy in the field I've worked in all my life. What is the best structure for this? - Is a limited company better than a sole trader? Would I be better off sharing the risks etc with a business partner? Thanks

The simplest way to do this is as a sole trader. If you are worried about risk, you need to make sure that
1. You have professional indemnity insurance, which should be easy to arrange, because you are working in a field which you have experience.
2. have a contract that you use with your customers that makes it clear that the risk sits with them, not you.

Business partners can be a great comfort, like any other kind of partner, but equally when the relationship goes wrong, business partners can be a nightmare. I have been there!

Hello Robert, I have also a business idea but having been employed all my life, I'm a bit worried to make the jump. When you started as an entrepreneur the first time, what was the time frame you allowed yourself between the concept to the actual 'jump' (if you remember...) and the best lesson learned? Thanks

Is it realistic to think of starting a business while you're still in paid employment - or is this a definite no no?

And what are the ethics of this? Should you tell your boss?

whenim64

I'd be interested to know more about turning a hobby or interest into a business, without it running away with me. I've seen so many people who have started selling things like cupcakes, craft jellery or hair ornaments, but the tail has ended up wagging the dog - they get stressed and feel they have to expand to keep competitive. A manageable part-time job from home would be ideal, so what are the strategies for keeping it just that? Thanks.

Morgan Cars maintain high profit margins by refusing to increase capacity to make more cars. If your business is about doing the things you like in the time you want to spend to make the money you want to earn, there is nothing wrong with building a waiting list of customers, or even saying no.

A good way to manage demand is to offer premium-priced products and services. You don't want to be cheap, because you don't want to sell lots.

marthamuffin

Hello Robert

Can you tell me - how important is it to have a business plan and where do you start with one?

Thank you

Martha

A business plan is really important, because it should tell you on one piece of paper what you do, why you're different, how much you are going to earn and how busy you are going to be. My online course has a workbook which, as you complete it, cunningly becomes a ready-to-print business plan.

Writing a business plan is only complicated if you make it too big and try to describe things that frankly don't matter.

All the guides to setting up a business say 'do market research'. But what if you're not a trained market researcher and you're on a tight budget?

Is it a good idea to get a mentor? And how do you go about that?

distaffgran

Sorry, thought I was going to be around for this later but now realise I'm not, so I shall ask my question now....is now really a good time to be starting a business? We keep hearing stories about banks not lending.

And, related to this - I have what I think is a brilliant idea but it is quite capital intensive. What would be the best sources of investment to look into?

Now is a fantastic time to start a business. That's because when the pressure is on people's budgets, they will be far more receptive to a new supplier who offers something different.

The internet and in particular social media have reached a point where the smallest business can make the loudest noise about what they do. Previous generations of business starters had to spend lots of money on expensive marketing.

There are also some very useful crowd-sourcing funding platforms that will allow you to recruit customers, get them to invest up front and therefore fund your business start up. My favourite of these is called Buzzbnk.

If you are really worried about your business idea being capital-intensive, maybe you need to find a company that has the expensive stuff you need already who can sell you spare capacity.

northerngran

I'm interested to know what proportion of small businesses fail within the first year? And what tips you have for making sure that mine wouldn't

If you have a good idea, keep your ambition within realistic proportion and listen to your customers, your business will not fail. Then remember a lot of people when made redundant have business cards printed and say they have a business, but really they are looking for another job, so those would count as business failures.

Nationally, the business birth rate is usually equal to the business death rate, but, as I have said, businesses close for many reasons, some of them actually quite positive.

The biggest factor that will determine your success is your ability to maintain your enthusiasm and energy and keep doing what your experience shows you works.

What is the commonest mistake people make at the beginning of a business?

coldwork

Is it a good idea to get a mentor? And how do you go about that?

Mentors are really important. But be sure to choose somebody who has already succeeded in the field you are entering. It's important to make sure that your mentor is really doing it for the right reasons.

Good mentors will encourage you to reflect, think, and act objectively. Bad mentors will tell you they know the answers and get you to live out the dream they lack the courage to realise for themselves.

The best way to find a good mentor is to ask around your marketplace and see who the most respected players are. There are also some national mentor brokering schemes you can look at, but make sure, if you find someone this way, that the chemistry works between you. Mentors Me is a good starting point.

Can you give any tips on establishing and building a brand? What are the key things to bear in mind in terms of creating a positive impression?

partnerincrime

Is it realistic to think of starting a business while you're still in paid employment - or is this a definite no no?

And what are the ethics of this? Should you tell your boss?

It all depends on what the business is going to do. If you plan to start supplying your employer's customers in your own time (moonlighting) then the answer is a definite no.

If, however, you have a great idea but it doesn't quite fit with what your employer is all about, then with their consent and approval, it should be ok to develop the idea in your own time.

You would not be the first person to do this and find your employer willing to invest their money and even your time in a good idea.

If the business is really small simple and not time consuming then my advice would be just do it!

kittyp

Hello Robert

I work two days a week (as an employee) and am thinking of using some of my spare time to start a small business from home. But what will happen to me in terms of tax if I am PAYE for work and self employed the rest of the time? It's been putting me off getting going. Many thanks

This is really easy. Your employer will continue to deal with your PAYE and you will account for your self employed income via your annual tax return. You then pay any tax due on your self-employed income in arrears in January and July of the following year.

stuffnonsense

All the guides to setting up a business say 'do market research'. But what if you're not a trained market researcher and you're on a tight budget?

There are two kinds of market research
1. Professional, extensive and also expensive
2. Common sense, customer feedback and intuition

People usually invest in 1 to justify what they believe as a result of 2. My advice is go for 2 because it's you, your business, your marketplace and your instinct will probably serve you pretty well.

Hi Robert

All this sounds really great and I think I have a good business idea. Where can I find this online course you mention?

timekeeper

I have an idea for a social enterprise - which would be at least as much about meeting a need as making money (though I think we could make enough to cover our costs and reinvest eventually). Are there different rules for this? Where should I look for ideas on how to set up this sort of a business?

There is a lot of hot air spoken about social enterprise. You have an idea for a business which has a strong social purpose as well as the ability to make money. The only rule you need to worry about is that you can only make a difference when you are also making money. So make sure you follow your head and your heart in equal amounts.

In terms of structure, if you want to seek grants to help establish a social enterprise or give peace of mind to public sector organisations who might contract with you, it would make sense to set up as either a community interest company or a company limited by guarantee. There's more on this here

I am not very good at keeping my domestic costs under control. Can you give me any tips for keeping business costs to a minimum - general principles, obviously!

suffolklass

Hi Robert

All this sounds really great and I think I have a good business idea. Where can I find this online course you mention?

The Gransnet taster is here www.gransnet.com/learning/starting-a-business/ - do take a look!

I am addicted to Dragons' Den. I love watching people pitching their business ideas and seeing the responses. But it's so scary it's put me off actually trying to do anything myself. Have you got any reassurance - or is it really as tough as that?

gillybob

Hi Robert. My husband and I have had our own business for around 20 years. Recently due to economic downturn (and successive governments not supporting small manufacturing businesses ) things have gotten so bad that we no longer have a life outside of work. We are both either at work (at work) or at work (at home) if you understand what I mean. We are struggling financially and have quite literally put everything we have into keeping going as we have people relying on us for their jobs. I really miss having a "life" and a weekend away or dare I say a holiday would be impossible. How can we get our life back? Do you make sure people fully understand the serious pitfalls of running their own business before they go into it? I would seriously never encourage my children to have their own businesses and given how they see us I doubt by ever will. Sorry I know this thread was about starting a business but I thought it was relevant to point out that it isn't always a bed of roses.

Clearly, I don't know the specific circumstances about your business. But as a rule of thumb, when times get tough, the people who make hard decisions quickly and without regret are those that survive the turbulence.

I also believe that a business is like a human being. It is born, it grows, it learns, it matures and in time, inevitably, either reinvents, merges with another or simply dies.

ChrisMW

I registered my new business as a Limited Company to protect the name and have left it dormant while I operate as a sole trader. My business is a consultancy for older people and their relatives who do not have access to social services. I want to become a Social Enterprise because Social Services and the NHS won't do business with a private company. Does this sound worth doing and what are the first steps I need to take?

Firstly, pass my congratulations to your local social services for being so supportive of the social enterprise movement. They could have simply contracted everything out to SERCO and left you high and dry.

There is no clear legal definition of a social enterprise, just interpretations and assumptions. You could, however, change your limited company into a community interest company by adding the relevant bits and pieces into the Memo and Arts.

The most important document to look at first is CIC 36, this is the form you use to define your community of interest, filling it in is in itself a really useful exercise. You can download this and more information from the CIC regulator.