Stueyb

Hi Guys n gals,

Before I start, this is a long one, so bear with me.

I have had an excellent idea for an e-commerce idea and I need some advice.

Basically there are a few firms that are doing what I thought off, but not in the way I thought of. Basically without getting into it all, I have a Unique selling point, good prices, and the potential market is huge.

I also know an awful lot about the products Im (hopefully) going to sell and potentially making an awful lot of money out of it.

Now for the questions.

The kind of items im going to be selling are "cash intensive", ie I need a lot of it to buy the initial stock. I haven't really got any savings because im just in the middle of buying a house (cash intensive and a half ) What would be the best way to get the money - bank loan ? I did think about the princes' trust etc, but the startup costs will be ~5K minimum, and what are the criteria for getting one of these grants ?

Any other ideas as to raise capital, except put the missus on the streets.;0

The actual overheads ex stock are actually very small, and should it go titsup.com, with the exception of unsold stock, the total amount i'd have to pay to "finish it off" would be about £500 max.

Also, I don't know wether or not to go "legit" ie pay income tax, staff wages etc (there is only me and the missus, ie "free" labour rather than min wage for her at 4.whatever an hour)

I think the costs in going legit would cost me an awful lot. Basically if it got big, i'd have to do this but I really want to just test the water so to speak before splashing the cash. Any ideas on that one ?

cjones944

Forming a Ltd Co can be done for about 15quid. If both of you work fulltime on this venture (37 hours per week) it will cost you NMW x 37 x 4 (weeks) x 3 (people) per month for wages.

I'm not exactly clear what it is you are not quite sure of?

Are you looking for capital/startup help/business experience?

Squizz

Stueyb - I assume you've got the technical know-how for the e-commerce, etc. However, if you need a web design company to give your site that little bit extra...Check my profile.

Good luck in your new venture, whatever!

Stueyb

basically what im not sure of is how to raise the money, whilst minimising my exposure, and if I should do it in the "black economy" so to speak.

south-star

If its as good as you say,what about friends and family?

Stueyb

Love too, but my parents/relatives aint got any cash either, and whilst i dont mind risking my own cash, id hate to lose my families money. Id feel awful if it didnt work out ?

Makalu

Are you selling an expensive or cheap product?
Are you counting on selling lots of small value products or a few high value? If its the second - best think about a part time job to support yourself!

Ltd Co or partnership - both have their own headaches. If you go Ltd Co. you can simply pay yourself dividends instead of a salary and get around some of the tax implications of PAYE.

I have a lot of experience (lastminute.com, gameplay.com etc...) in this... email me for a confidential chat if you want some impartial advise.

Mak.