Fresh Threads: breakups, flyers, advice for novices

  1. Ray Newman

    Ray Newman UKBF Newcomer Staff Member

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    7 |

    Hi UKBFers,

    Welcome to Fresh Threads, our weekly roundup of the best comments and advice from the forums. 

    Here are my top picks from this week.

    1. Selling a business quickly when a relationship ends

    Arch26

    I run a hot-tub hire business with my now ex-partner. We purchased the business last May, and have grown the business a lot. The split is not amicable and so I'd like to sell the business as soon as possible. How can I value the business for a quick sale? My worry is that I might underestimate and face action from my ex-partner when he receives his 50% cut.

    Jeremy Hawke: In the first instance, cancel any bookings and sell any remaining equipment, if you can. If you have no tax liabilities and borrowings and you really don't want to take the business on on your own, then all you have to do is let it go. It seems to be of little material value.

    WebLinkPlus: Maybe you could sell the bookings to a competitor for a commission? If your partner thinks the business has value, then let him find a buyer. Or, if you have an offer, tell him to find a better offer, or you'll accept what's on the table. Specify a deadline, so it doesn't drag on. He can't claim it has more value than someone is actually prepared to pay.

    fisicx: You are not selling a business, you are offering someone a spare time job – something they could set up themselves for the cost of a hot tub. If you can't manage the existing bookings, pay someone to do it for you. All you then need to do is shut down the website, close the social media accounts, and sell the kit. If your ex-partner isn't interested why should you have to do all the hard work and still give them 50%.

    Mr D: There is not a standard way of valuing a small business. You could ask three people at your local pub and use average of their suggestions just as easily as come up with something yourself. Usually sellers vastly overestimate how much they can get. And a couple of years later, it's still for sale.

    2. Where am I allowed to hand out flyers?

    Onlyme123

    I would like to know if I am allowed to hand out flyers to promote my business outside train stations or in the street. Also, am I allowed to hand them out on trains? I see lots of people handing out flyers outside specific stations, advertising gym memberships and so on.

    Itsnathanhere: I worked at a train station for five years. The people you see will have sought permission and are likely paying a fee to promote on Network Rail property or on a train operating company's rolling stock. In my station's case (can't speak for all of them) the street directly outside was also Network Rail property. You definitely don't want to go in without permission: a certain political party tried and got swiftly ejected from the premises with a loud, embarrassing tannoy message to seal the deal.

    MBE2017: Most councils will have a huge problem with the likely amount of discarded leaflets. Most people will not put them in a bin and with your business's name written on them, you can expect a visit.

    WaveJumper: On private land or premises you need the owner's permission, as already highlighted, and you will quite often get charged for this. The Clean Neighborhood and Environment Act 2006 allows local authorities to control the distribution of leaflets in towns and cities.

    3. Starting an ecommerce business from scratch

    Stedurham

    I'm looking to start an ecommerce site, I have no knowledge whatsoever of this sector and need help with the very basics. I know I can acquire and sell the product but have no idea how to get to the top of Google and how much this could cost. I know its a vague question as all industries will be different. The cost of a website, I'm guessing, is £6,000-7,000, which wouldn't be an issue. I could sell on eBay but companies seem to sell 40% cheaper on eBay than their own sites.

    WebShopAssist: ‘The cost of a website, I'm guessing, is £6,000-7,000’? It can be a lot less than that, depending on your plans, but you should budget way more for marketing.

    fisicx: Once you have a marketing strategy, and from there a plan, you will know what type of website you need, how the products are organised, the style of the copy, the payment scheme and so on. Everything becomes much simpler after that. Forget getting to the top of Google – that ain't gonna happen without a bucketload of cash and a huge amount of effort.

    Mr D: Do both – use eBay and run your own site. It's not as if eBay will cost you much if don't make any sales, and if you do make sales, you'll make enough in profit to cover any fees.

    4. Company accounts for beginners

    Kung

    My partner and I are launching a small catering business and both struggle massively with even basic technology but we need to set up some kind of accounting system. I will be ‘doing the accounts’ because my partner doesn't read and write English very well, so we need an idiot-proof system. As a matter of personal preference I would choose, calculator, pad and pen. Initially there will just be two of us but we envisage taking on staff by winter 2019.

    Newchodge: While you are small, calculator, pad, pen and a good filing system for the paperwork can work. However, as you are planning to grow, you will need either to be able to use some form of technology, or pay someone to do it for you. You obviously have access to a computer and can use the internet, so that is a start. No system is entirely idiotproof, but for a start it might be worth looking at your local colleges and see if they offer any training. At this stage, don't spend or commit to a huge amount of money on accounts software.

    Mark T Jones: With the rollout of online filing you’re probably best starting off with a recognised package such as Xero or Quickbooks.

    MyAccountantOnline: You are going to need to keep some good accounting records and at some point it is very likely you will have to keep them digitally. The Government already insist some VAT registered businesses use software for record keeping. My advice is to get a good accountant and ask them for advice on bookkeeping – they may be able to offer it as part of the service or recommend a good bookkeeper.

    MJ Holohan: Definitely look at some online accounting packages, although you can probably make do in the meantime if cashflow is very tight. You will incur book-keeping costs anyway, though, and I agree with the above – you should budget for some accounting anyway as will make your life a lot easier.

    Don't leave it until few months down the line, it's something you need to sort when you start.

    That's all for this week – have a great weekend!

    #0
  2. Furqan721

    Furqan721 UKBF Contributor Full Member

    55 4
    Thank You for sharing this stuff!
     
    Posted: May 16, 2018 By: Furqan721 Member since: Feb 26, 2018
    #2
    Chris The Dropshipper likes this.
  3. Salifuj

    Salifuj UKBF Newcomer Free Member

    24 1
    After all said and done, not all businesses or websites need to worry about it. Most small businesses will not be affected right?
     
    Posted: May 30, 2018 By: Salifuj Member since: Oct 7, 2016
    #5
  4. ÜZEYİR

    ÜZEYİR UKBF Newcomer Free Member

    0 0
    teşekkür ederim
     
    Posted: Jan 25, 2019 By: ÜZEYİR Member since: Jan 25, 2019
    #7
  5. Brian Preston

    Brian Preston Banned Free Member

    0 0
    this is Inflation
     
    Posted: Mar 27, 2019 By: Brian Preston Member since: Mar 26, 2019
    #8