james401 started this topic @ 14:10 on 24/02/2004
Hi
Please forgive me for going over old ground here. I have read previous postings and this is similar to ones which have come up in the past. However, any advice would be appreciated.
I am currently looking into setting up and operating an online store / mail oreder business. After a certain amount of research, I believe that I have found a certain 'niche' within the IT industry, which hopefully I could exploit. It does involve selling although obviously I do not want to be too specific on this forum.
I am therefore looking at the option of having my own website on which, potential customers can visit, browse and hopefully purchase. I believe I have adequate storage at home and would be prepared to hold and send goods out from my home address.
However, having absolutely no idea whatsoever when it comes to the legalities of operating such a venture, it would be greatly appreciated if anyone could offer any advice.
Specifically, I have the following queries :-
How easy / difficult is it to open trade accounts with potential suppliers and do you have to be a registered company ( I would not be looking for credit accounts at the moment. I would intend to pay for supplies up front. )
How much money do you have to make before having to pay Tax, what type of insurance is required ( if any!! ) and what other important factors would I have to consider?
I believe I could make a positive success of my idea but as you can see, I simply lack the relevant know how at the moment to take my venture forward. Any ideas / help would be very greatly appreciated.
Regards
James
RE: New business idea but lack knowledge!!
nickc | 24/02/2004 07:41 PM
quote:
Originally posted by james401
Specifically, I have the following queries :-
How easy / difficult is it to open trade accounts with potential suppliers and do you have to be a registered company ( I would not be looking for credit accounts at the moment. I would intend to pay for supplies up front. )
Depends on the suppliers.
quote:
Originally posted by james401
How much money do you have to make before having to pay Tax, what type of insurance is required ( if any!! ) and what other important factors would I have to consider?
As a sole trader, you won't pay tax until profit exceeds your personal tax allowance. Beware that you have to be VAT registered if you exceed 56k turnover NOT profit. You will need Public Liability and Profesional Indemnity insurance. Phone round your local Insurance Brokers who will be able to advise you of what you will need.
quote:
Originally posted by james401
I believe I could make a positive success of my idea but as you can see, I simply lack the relevant know how at the moment to take my venture forward. Any ideas / help would be very greatly appreciated.
Visit you local Business Link who offer free advice as do the Citizens Advice Bureau. Hope this helps.
Nick
Bespoke UK Software Development [url]http://www.all4yourpc.co.uk[/url]
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RE: New business idea but lack knowledge!!
James Smith | 24/02/2004 07:46 PM
What nick said, although regarding getting trade accounts, the main obstacles will be volume and credit. As you can pay upfront, credit is not an issue, but some suppliers don’t like dealing with the very small customers, so you might have to shop around.
I have just had a look around the business link website, and it should be ideal for someone in your position to get a flavour of what decisions are needed, and what needs to be done.
If you need some specific help when you have had a look around these resources and spoken to business link then by all means give me a ring/email and I am quite happy to help people out (within reason) to get them going on their new business.
Good luck!
James Smith
Chartered Accountant
[url]www.jamesesmith.co.uk[/url]
[url]www.uktaxshop.co.uk [/url]
01284 764436
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT