Advice needed for setting up and import key points multiple business plans

[modware]

After years of research but so more procrastination it’s time to take the plunge.
I do overthink things so some questions might well sound daft but here goes, could well be over complicating it.

Background I’ve saved money for which I’ve been putting aside ready to startup the businesses.

Over the next 5 years I plan to develop 2 business ventures. I understand it can sound a lot to take on but they are very different market propositions and each of them would have differing impacts of time and involvement required. Plus time to build up the initial 1-2 I would know what further support I would need ie employees or contractors as needed (this is down the line and certainly not in the near future).

First question is would you set each up individually over the years or would you create a holding company that you would spin these up into over time? My goal would be to reinvest the profits from each business to grow and develop. If that has an impact on the best setup?

Business number one:-

I’ve done the research and see the opening and what areas aren’t well serviced. The business is something I can start up and run alongside my current job. It would involve importing from China the goods that I would then resell to end user customers. I know I need an EORI number to import on.

1. Do I need to be VAT registered to setup an EORI? I’ve read up on this and it reads like you do. The initial projected sales for the company year 1 would be approximately £8,000
2. Are there any other things I should be considering when setting up a company to retail specific imported goods. I have the commodity codes and duty rates
3. Are there any company support / setup that help with setting up a business to import. I see companies that help setup the usual company name, limited etc etc but I don’t see any that go further?

Business number two:-

A property business with the goal to be used to let to tenants, as well as maybe resold. There’s so much news now on a war on landlords that looks to be having multiple negative impact.

By setting up as a limited company does this separate from the costs that are now hitting landlords that have one as a second property? With so many selling up maybe it’s a bad time to even consider getting into this area of business.

Lastly are there any recommended organisations to be a part of to help support.

 

[japancool]

Do I need to be VAT registered to setup an EORI? I’ve read up on this and it reads like you do. The initial projected sales for the company year 1 would be approximately £8,000

No. But I recommend you plan and set your pricing as if you are VAT registered so you don't get a price shock when you do reach the registration thershold.

Are there any other things I should be considering when setting up a company to retail specific imported goods. I have the commodity codes and duty rates

Know your costs. All of them. It's not just duty and VAT, but there are all sorts of other associated costs, such as storage, transport, postage and packaging, advertising etc. Know your profit margins, and your projected *net* profit margins.

Understand who your target customers are, and where they hang out. This will dictate how you can best get to them.

 

[JEREMY HAWKE]

I'm a bit worried about you ,You joined this site a few months before I did and 16 years later you have not started and are projecting a year 1 turn over of 8K but you deserve a good a go at it as you have never given up on the plan

 

[Mark T Jones]

The biggest single piece of advice I would give is focus on one thing at a time, particularly as you are given to complicating things.

 

[modware]

No. But I recommend you plan and set your pricing as if you are VAT registered so you don't get a price shock when you do reach the registration thershold.



Know your costs. All of them. It's not just duty and VAT, but there are all sorts of other associated costs, such as storage, transport, postage and packaging, advertising etc. Know your profit margins, and your projected *net* profit margins.

Understand who your target customers are, and where they hang out. This will dictate how you can best get to them.

Thanks for the advice. I’ve got all the costs, logistics storage import etc all covered in pricing. Glad freight costs have reduced considerably over the last 18months.

 

[japancool]

Thanks for the advice. I’ve got all the costs, logistics storage import etc all covered in pricing. Glad freight costs have reduced considerably over the last 18months.

I mention it because we see people on this forum who go into an e-commerce business, haven't set up their pricing models correctly and have no idea whether they are making money or not, particularly when they have a large product range.

It's something you see a lot when people use FBA.

 

[modware]

I'm a bit worried about you ,You joined this site a few months before I did and 16 years later you have not started and are projecting a year 1 turn over of 8K but you deserve a good a go at it as you have never given up on the plan

Purely based on since travelling so much over the years for work simply wasn’t viable. Only the last 3 month have I been able to ground a majority of work travel to refocus. £8k based on part time alongside what I’ll continue to be doing.

 

[modware]

I mention it because we see people on this forum who go into an e-commerce business, haven't set up their pricing models correctly and have no idea whether they are making money or not, particularly when they have a large product range.

It's something you see a lot when people use FBA.

It’s a really good point and I can understand where people will underestimate. 100% agree with you.

 

[MBE2017]

I would concentrate on the import business first, try to actually do something. As Jeremy pointed out, its been a long time in the planning stage.

 

[Porky]

Jeeze

Just start the one business and totally dedicate to working at it to get it right.

Stop dreaming nonsense about multiple companies, structures and other distractions. Get one established first and build on it.

Good luck

 

[JamaC]

1. Are there any other things I should be considering when setting up a company to retail specific imported goods. I have the commodity codes and duty rates

Hire an agent based in China. They will act on your behalf and do all the leg work for you. They will know the best manufacturers that are suited to your business and find you the best deals.