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

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.

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?

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

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!

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?

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?

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 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

praxis

My friends think my biz idea is brilliant, but they're probably just being kind! What's the best - and simplest - way to test out whether there really is a market? Any advice gratefully received!

The best way is by networking. Your friends are supportive but perhaps would be embarrassed if you tried to sell to them, so get your friends to introduce you to their friends and try to sell your business idea to them. If they say yes, you have a business and if they say no, you need to find out more before being sure it's going to work.

There is no substitute for talking to the people who would be your customers, you have to give them what they want to buy at a price they are willing to pay. It is that simple!

rosiemus

I enjoy baking celebration cakes for family and friends and they have gone down so well that I've been asked on numerous occasions to bake them for other people who are happy to pay. I'm thinking (after several requests) about making this a regular thing.But, if it's ok, I have two questions. Firstly - I never know what to charge. Obviously I cover the cost of ingredients etc but am not sure what I should charge for my time etc. Secondly if I continue to do this as an ad hoc thing do I need to set up a company or anything or can I continue to do it more informally? Oh (sorry - three questions) - and if I am only charging for ingredients at cost and therefore not making anything do I need to declare this as income? I assume I do if I start adding my time onto the cost. Very many thanks

The first question is easy to answer, all you have to do is go shopping! Go looking for your cakes in shops and see what other people are charging for them, then see how yours are different, add in for the convenience of you delivering or people collecting from you and pitch your price.

The second question is about when to set up a company. The answer depends on if you have other income. So you probably don't need to do anything involving tax or companies until you are earning more than the basic personal tax allowance. Even then, you can be self-employed, which just means keeping records and filling in a tax return each year. Best advice: take one step at a time.

I am ashamed to say I have never seen a business plan. What are the rules for writing one? Is it always necessary to have one, even if you're not looking for investment at the outset - and what information needs to be in there?

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?

My ambition is to set up a business making simple crafts - mosaics, rag-rugs etc - using the skills of homeless and unemployed people I've met through a local project. Is this totally unrealistic and idealistic? Would it be best to get the business started (in a modest way) before involving other people?

My friends think my biz idea is brilliant, but they're probably just being kind! What's the best - and simplest - way to test out whether there really is a market? Any advice gratefully received!

Am I allowed another???

If so - how important is the name of your business? Any tips?

I have an idea for a small business. What steps can I take to stop someone else copying it?

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

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

Hi Robert,

I would really like to reinvent myself and also do something useful and I think I have lots of energy and enthusiasm - but I struggle with finding the killer idea.

Can you give me a sense of how to think of the right business? All the advice I read assumes that you've already got a fantastic business idea.

I can see that lots of things in my life would be improved if I could work for myself, and I think I'd be good at it.

I would be worried about the legal and accountancy issues - is this something that is a lot of work? Legally, what would an absolute starter need to start selling?

Hoping you can settle an argument a discussion I have been having with a friend. How important is social media these days when it comes to setting up a business. I can't be doing with twitter

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

I enjoy baking celebration cakes for family and friends and they have gone down so well that I've been asked on numerous occasions to bake them for other people who are happy to pay. I'm thinking (after several requests) about making this a regular thing.But, if it's ok, I have two questions. Firstly - I never know what to charge. Obviously I cover the cost of ingredients etc but am not sure what I should charge for my time etc. Secondly if I continue to do this as an ad hoc thing do I need to set up a company or anything or can I continue to do it more informally? Oh (sorry - three questions) - and if I am only charging for ingredients at cost and therefore not making anything do I need to declare this as income? I assume I do if I start adding my time onto the cost. Very many thanks

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.