mad555

iTrader: (1)

Any business advisers on here?.

ScoobyWon't

Make sure it's legal, or don't get caught

sti-04!!

Yeah. Its not as easy as people make it out to be

ScoobyWon't

Don't protest in London

Dedrater

Buy low sell high.

David Lock

1) Buy a bank

2) Retire

Nurse Gladys

Bet you're really glad you asked!!

Both you local Business Link and HMRC have Business Advisers who will offer free consultations & workshops.

HMRC site - HM Revenue & Customs: Starting up in Business

and the Revenues best kept secret the Business Support Team - HM Revenue & Customs:HM Revenue & Customs Advice Teams

Don't be put off by them being from the tax office - they are genuinely there to help you avoid any tax or NIC pitfalls!

Good luck

mad555

iTrader: (1)

A saturday night was maybe not the best time to post this.

The Chief

try this forum....

UK Business Forums - the UK's most active help and advice forum for owners, managers and entrepreneurs of small businesses and startups.

just be prepared for some negative comments off two dragons den wanabee's who've never run a business in their lives.

hodgy0_2

iWill give you the benefit of my experience, and its COST

Keep them as low as possible

And never forget sales – always keep filling the funnel

After a few good years its tempting to go in for flash offices potted plants, smoked glass, big company financed car etc etc

But it’s all got to be paid for

Statistically if you can survive 7 years your in the clear (most businesses fail between 5 to 7 years) exactly when the costs rise and revenue does not

As previous posters have said keep your tax and vat up to date (my experience with HMRC has always been positive)

Matteeboy

Be wary of business advisors - many have never run a business!

Do a basic accountancy course - helps no end.

Keep a level head - a big sale does not mean a new Range Rover - in fact I often see company flash cars and think "they'll go bust soon" - they often do.

MikeCardiff

iTrader: (2)

I'd agree - most business advisors have never been in business - they have done a course in 'business studies' - taught by someone else who did a course in business studies, and who has also never been in business.

Quite obvious really, if they knew that much about running a successful business, they would be out there doing it, not being an advisor.

DCI Gene Hunt

Yes, I am..... I'm actively involved with real world profit & loss, budgets, DCF, NPV, accounting ratios, etc, business cases, strategic procurement, leases, safety and anything else you care to discuss.

Matteeboy

Please say you are being "ironic" with that string of business waffle...

DCI Gene Hunt

Nope, did I mention "value engineering" ..... I'm like Alan Sugar, only taller.... without a beard, less money, different accent OK I'm nothing like Alan feckin Sugar

Matteeboy

I was worried for minute or two...

The Zohan

More like Alan Partridge!

YouTube - alan partridge on farming

YouTube - Alan Partridge - Ladyboys

DCI Gene Hunt

You seem unable to post without including a reference to dudettes with dongles... but hey, you're amongst friends here....

albeit you're around friends with their backsides firmly pressed to the wall

The Chief

Totally true there.

Me and a buddy went to see one once funded by Oldham council.
His advice about went totally against my instincts with regards to offering value for money to customers.

Me: so then how many businesses do you operate?

Business advisor: None - but i did have a fastener company 8 years ago

Me: So what happened then?

BA: Its no longer operational

Me: How come, did you go bust?

BA: Not exactly - anyway can we move on?

Me: FFS - what a waste of my time.

DCI Gene Hunt

The best business advice is how to analyse other business for liquidity and the ability to either supply yours or on the flip side of that be capable of paying yours.

There are basic accountancy awareness needs for all budding Richard Branson's that enable them to understand the mechanics of business but other than that most people are capable of actually running a business without advice from some flunky.

Matteeboy

DCI - as a fellow business owner (well I think you run one too), I am wondering -are you still being ironic?!

how to analyse other business for liquidity - ermmm you mean check if a business has a good credit rating/payment record

ability to either supply yours or on the flip side of that be capable of paying yours. - in other (much more straightforward terms) - keep your own credit rating decent.

There are basic accountancy awareness needs - learn basic accounts

DCI Gene Hunt

It depends on the level of business as to the amount of investigation you should do. If I'm going "***** in" I'd expect to see the profit and loss accounts and balance sheets to make sure that the supplier/customer wasn't at risk of going belly up on me (as is to often the case these days). The balance sheet is a way of establishing the creditors for the year ahead and thereafter using accounting ratios to get a real feel for the deal.

Under a million turnover per annum and you could wing it, but you're exposed to a hell of a lot of risk is things go Pete Tong!

Devildog

One out of three Matt

Simply establishing that your customer has a good credit rating or payment history is not enough these days. Both are based on historical data, sometimes significantly out of date. Current liquidity is a more useful measure during challengeing economic times.

Likewise, having a decent credit rating yourself doesn't mean that you are currently sufficiently well funded through either borrowings or reserves to be able to meet your own payment obligations (either in terms of overheads or "raw materials")

A lot can happen in a very short timescale in the current climate.

As for the orignal post, my advice would be

1) be wary of asking scoobynet for advice on such an important issue
2) Many so called "Business Advisors" are poorly qualified to advise
3) Ask around and seek recommendations for a good accountant - many are better qualified to give small business advice than any stand alone advisors.
4) Your local community may have a "small business gateway" or similar, where the advice should be free and impartial.

Basically, the only people you should be paying for advice at your stage are qualified accountants, and maybe your lawyer. They are regulated and bound by professional codes of conduct.

HTH

DCI Gene Hunt

There's nothing wrong with asking SNet, it's the bit after that where you make decisions based on what SNets said that's dangerous.

So for clarity:

1. Ask Snet
2. Laugh along with the replies
3. Seek professional advice BEFORE investing YOUR time and OTHERS cash

Devildog

Fair point

Matteeboy

DCI - sorry but you are needlessly waffling. I run a business that has been doing well for a few years now so do have experience and also write as part of the job. The sort of stuff you write just makes me cringe - needlessly jargon filled.

Simply establishing that your customer has a good credit rating or payment history is not enough these days. Both are based on historical data, sometimes significantly out of date. Current liquidity is a more useful measure during challengeing economic times.

Well our method has worked fine for us for many years. We have cast iron payment terms plus Ts and Cs and a lot of experience of people trying it on; so we have a number of ways of making sure we get paid. No bad debt in the company's history.

Likewise, having a decent credit rating yourself doesn't mean that you are currently sufficiently well funded through either borrowings or reserves to be able to meet your own payment obligations (either in terms of overheads or "raw materials")

We have never got within £5k of being overdrawn, don't need to borrow (ever) and have a top credit rating if ever needed. Again this para is filled with pointless jargon and that level of credit paranoia will stifle many businesses.

And just in case you disagree, you'll see the results of our writing in the FT, Telegraph, Times, etc, etc, etc. In other words very experienced writers (journalists) like the way we use plain English, not waffle.

Devildog

Matt,

I'm not going to argue with you on this. What has worked for you will not necessarily stop someone else landing in the mire.

There is no " pointless jargon" whatsoever in my post. Just basic terminology.

Your business is run from home? With minimal overheads and no employees other than yourself and your wife as I recall? In other words its a very low risk business model from a financial perspective. If you take a hit on a bad debt its mostly time you will be writing off, not £x amounts of materials/parts/etc on top of that, which you have to pay for regardless - and which you most probably won't be able to recover.

You can have the best T&C's on the planet, but they are not going to help you if the bank revokes your clients facility at short notice and they have no money to pay you.

But hey, what do I know about business failures and suppliers getting stuffed

DCI Gene Hunt

Dude, it's your opinion and you're entitled to it fella

To be fair it seems that there are differing views on the terminology "business", one persons view is selling T-shirts from a small shop in Wales and the others is running a multi-million pound organisation who's estate portfolio is spread to the four corners of the UK.

You may not have a need for the macro aspects of managing a business and your micro view of trading may be all you need to succeed, but from where I sit I have to fully understand all aspects of big business not just how close I'm getting to my overdraft. Which we use to our benefit BTW as a financial tool rather than a penalty

Matteeboy

Devil (sorry for mistaking you for DCI!) - I also ran a division selling 1000s of tonnes of spuds a year. A typical load would be worth £20k++ and you needed to cover your back.

Of course we used credit rating agencies -CoFace mostly - to check customers credit ratings and paid a lot for them but that goes without saying (unless you, a new business starter, are really naive!).
We had to buy ahead, buy currency (often £500k or more at a time) yet still cover ourselves all the time. It wasn't rocket science. Yet five of us turned over in excess of £5m a year with a useful level of %GP. The business sold for a tidy sum making us a nice bit of cash.

If you are going into business and have to start with loads of debt and risk, then question the business model. Don't trust banks - ever. Especially at the moment. Start relying on them and they'll stuff you.

Oh and we use a network of freelancers and keep the risks and overheads to an absolute minimum as a very conscious business decision - not by mistake. We could have expanded, opened an office, employed more people but we aren't doing it to rule the world - plenty do that.

In fact there is no real direct competition leading to rule number one - innovate, do things differently and don't concentrate too hard on doing the same job better.

As for "multi million pound turnover" - I sorry but big turnover is nothing without decent %GP. You can run a high stress business, work all hours and earn £100k or you can work smart with much lower risk and earn £100k. I know which is the smarter option. But of course it's impressive "bar talk" to brag about the size of a business and how important you are...

DCI Gene Hunt

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