Lots of Questions! Need help

[Muzzy]

Hello All,

My business idea is still very much in it's infancy so please bear with me.

I have very little knowledge about setting up in business so expect a few questions.

My first of which is in regards to insurance.

The business is based heavily on the handyman concept. What kind of insurance would a handyman require for example? I just have no idea and have spent too long trawling the internet without any success. I presume public liability is a must but I have no idea how much it will cost. I know it will vary but I am just after a ball park figure. Are we talking a thousands, hundreds??

Secondly, to start with I would set up on my own. I wouldn't become Ltd until I thought it worthwhile. However, if I were to set up as a sole trader do I need an accountant? Bearing in mind that money will be tight whilst the business is in it's infancy, I am wondering whether I could have a one of consultancy with an accountant, get myself set up and away I go. Or do you think it would be better for me to have an accountant throughout the year. How hard is it to do my own accounts? Will an accountant be beneficial for a sole trader in relation to tax etc. Again, all basic stuff but things I am not 100% sure on. Also, what is the difference between being self-employed and being a sole trader? I am sure I could find the answer to this else where but since I am writing an essay I thought I might as well throw it into the mix :roll:

Thirdly, how much does it cost to set up a trademarked business name? I have looked on the internet and it varies massively. Could I do it myself or is it a risk not worth taking? Also, and this is just an example, if I had a business name 'lookingforholidays.com' but I also owned domains such as 'lookingforjobs.com' and 'lookingforcars.com' how do I ensure that someone doesn't come along and register 'lookingforpets.com' and starts trading under that name, if I can at all. I don't own these names and don't plan to, these are just examples. Another maybe, what is stopping me starting up a business called Virgincars or easyjobs?

And finally, what are the costs of starting up a small business that caught you unawares? I am sure that everyone who has started a business has at some point been hit by a bill for something they hadn't budgeted for. :cry:

I hope I haven't bored you with all this but I am getting desperate to find answers that I haven't been able to find on the interweb! :wink:

THANK YOU!! :D

Muzzy

[cqueen]

Public liability isnt too expensive, as an electrical tester my quotes were as low as £60, but I pay £120/year for extra cover.

Unexpected bills...hmmm don't think I've had any yet (fingers crossed).

[WakingDragon]

An insurance company will tell you what insurance you need and will be happy to discuss different models.

Get an accountant. Get them to quote you for what you need. Usually they will just charge once a year and will give you advice on all the stuff you need to tell Inland Revenue.

Re: company form. If you go for sole trader then make sure you keep your business and personal accounts separate. Beyond that an accountant would be best placed to advise on company form.

Trademarking should be a couple of hundred quid. Its quite easy but you should seek some advice if you are on uncertain ground. The government patent office web site is pretty informative though. It might be wise to do it if you are starting as a sole trader. If you start as a limited company then you already have strong support if anyone comes along and uses your business name.

Re: domain names. Anyone registering 'microsoft' would clearly be passing off. If someone registered 'lookingforpets' and started a similar business you would struggle to combat that as it is clearly not exactly the same or passing off as 'lookingfor holidays'. Basically if you want to get out there and succeed then you gotta work fast and be a success. Plenty of people have registered 50 similar domain names in order to cover all potential future growth areas so you could take that tack.

By far the most unexpected cost when I started on my own was the amount of time it took to generate enough to pay myself.

[Joyous]

Secondly, to start with I would set up on my own. I wouldn't become Ltd until I thought it worthwhile. However, if I were to set up as a sole trader do I need an accountant? Bearing in mind that money will be tight whilst the business is in it's infancy, I am wondering whether I could have a one of consultancy with an accountant, get myself set up and away I go. Or do you think it would be better for me to have an accountant throughout the year. How hard is it to do my own accounts? Will an accountant be beneficial for a sole trader in relation to tax etc. Again, all basic stuff but things I am not 100% sure on. Also, what is the difference between being self-employed and being a sole trader? I am sure I could find the answer to this else where but since I am writing an essay I thought I might as well throw it into the mix :roll:
Muzzy
Whether you need an accountant depends on how complex your affairs are. If your business records are fairly simple and you have no other taxable income then you possibly don't need an accountant. Having said that though using an accountant will ensure that you claim everything due to you and possibly save you as much tax as you pay in fees.

You can find guidance to complete the tax return on HMRC's website.

Many accountants will give you a free initial consultation. Pick up your local yellow pages and have a look at their adverts.

You can be self employed either as a sole trader or a partnership. A sole trader is you by yourself, a partnership is you plus one or more others.

Regards

Joy

[Tazuk]

Trademarks can be done free by yourself if it is unregistered - (TM) and it depends where you want to extend your trademark as registered (R). It is always best to consult with an IP consultant before you take action to discuss the best options for your business.

[winton50]

what joyous hasn't said (too modest) is that a good businesslike accountant will be worth their weight in gold for a start-up.

I would suggest talking to a two or three and see who you get on best with. Hey why not try joy as they have had quite a few positive referrals on here?

PLI shouldn't be too expensive but you should bear in mind that you will have an excess which wou will have to pay for any claim so if you bust someone's table that cost £100 you'll be paying it yourself!

biggest business 'cost' has been the time and trauma involved in finding out that it's better to pay more for good staff than try and do it on the cheap.

[Muzzy]

Thanks for all the responses.

Another quickie before the weekend kicks in,

how much does it cost to advertise on Google...The sponsored links, both down the side and at the top of the search results.

Also, how do you ensure that you are at the top of the sponsored links.

For example, I can imagine there are a few business consultants that would like to pay to be in the sponsored position in Google, but surely there is a limit. Do they pay extra etc. to be listed at the very top. What about the guys who pay for sponsored links and are behind a queue of 10 others?

Thanks again!

Muzzy