Starting a new business help

[lostboy87]

Hi all.
Im curently working for a big painting firm and me and my friend are contracted to a building company painting new build houses.
Today we were told by the site manager that they are not going to take our boss on for the next phase of the site because other painters that have been on the site have been rubbish.He said thate me and my friend are the best painters he has ever seen on a site and do not want to loose us.
He has said that we should undercut our boss so we can get the next phase,so we are wanting to set up on our own.
All we need is money for paint for the houses which we can sort ourselfs but we need to know how we go about setting up and what kind of insurences we need etc.
If anyone can give me ideas,pointers and advise i would be realy greatfull as im a bit clueless on this at the moment.Cheers.

[Finance Guy]

Hi there, I recommend that you and your business partner set up a ltd company first. This can be easily done by a formations coampany, who will guide you through the whole process online. I have used a firm called www.companyformations.co.uk before and they are good.

Then, you get some basic stationary made up. Advice on layout and content can be found on www.companieshouse.gov.uk.

At this point, you want to get some surety in writing about this new contract. Get it agreed in writing and be VERY confident that you cannot be stiffed, in the same way your current boss is about to be.

Then, armed with ID, ltd co paperwork and a contract, go to a bank and open up a business account - your own bank is a good place to start. Also, register for VAT online, via:
http://customs.hmrc.gov.uk/channelsPortalWebAp p/channelsPortalWebApp.portal?_nfpb=true&_page Label=pageVAT_ShowContent&id=HMCE_CL_001222&pr opertyType=document

[Finance Guy]

When you have done all of that, before you actually start working for yourself, get some quotes for Public Liability insurance (this insures you if you are being sued or if you injure somebody or damage something in the work place). You can just google search 'public liability insurance' or ask your business bank manager.

Then you are up and running!

There is loads more, like signwritten vehicles, an accountant, business cards, invoices, accounts system, payroll, credit control, but you can get great guidance on all of that via your local business link or Princes Youth Business Trust - just google those names and add your town.

Hope that helps. Good luck,

[lostboy87]

Cheers you have been a great help ill look into all this with my partner.

[MustafaTickl]

Very much more important than the above answers is that you must give very considerable thought to the fact that a lot of building site managers are very astute people and well understand and take advantage of that there is one born every minute.

[Finance Guy]

Mustafa...... why not change your name to Mr Negative!

[Samblain]

Whilst not in the painting business I employ people on sites and some have done their own thing. It often ends in tears. They forget that we provide all the support, office and statutory stuff. They also forget that when on your own holidays, sickness etc. come second. Weekends in the office are normal.

The building trade is notorious for slow payers. We always pay out wages before we get paid. Not so easy if you are self employed and have no other resources.

We also have written into our contracts that customers cannot poach our staff. If they do we sue. Likewise people who are happy to leave us in the lurch find themselves without references etc.

This is not negative thinking merely the facts of life. I started with redundancy money and drew nothing from a start up situation for almost twelve months.

[MustafaTickl]

There is nothing in the least bit negative in my reply. Lostboy is going to do the dirty on his employer, the site manager is going to do the dirty on his sub-contractor, and lostboy is going to undercut the prices of his employer which will no doubt be fed to him by the site manager. What a way to start a business. And does Lostboy think that the site manager will not require a substantial and frequent kick-back for the favour, funded no doubt by collusive false accounting? And if someone kick-back's more to him will the site manager be loyal to Lostboy? As I have said, there is one born every minute.