How do i expand my business from here??

[matt1983]

Hi guys

Im trying to get some input on expanding my business and how to go about it,

Let me give you some background info:

I basically work alone at the moment but i have so much work on its getting to the point where i really need another pair of hands to help the business run more smoothly, im finding myself having to turn business away at the moment.

My main issue is that i would like to take on an apprentice (i posted previously about this) but even with the amount of work on i am reluctant to do so incase i cannot afford to keep them, its basically me being scared to take that risk i suppose..

Me and my family have personal debts totalling around £10,000 and while my business makes plenty to support us and pay these and still have money left over im worried that if i take someone on i'll have to take money away from the business and my family to stuggle to pay someone new.

Also with having debts my credit rating is probably classed as low, so i cannot take a new loan out to fund an apprentice and also cannot find any government help....

So, what do i do?? how can i progress with the business and build it up if i cant hire a new person? also paying off my personal debts first isnt an option since this is going to take so much time and i really need to get cracking with building the business to the next level.

I could carry on as i am doing but im the kind of person who HATES turning away business but i physically dont have enough time to do everything myself and hiring a part timer to come in would do more harm than good in my opinion since its a specialised business and i really need to spend the time to train someone and know that the time im putting into doing so i am going to benefit long term from.

Hopefully this isnt too confusing...


Cheers

 

[samz]

Hiya

Have you thought about getting an intern for a few months then you can assess the viability or hiring someone...

Sam

 

[matt1983]

Hi

Might sound like a daft question but whats the difference between an intern and an apprentice?


Cheers

 

[MorrisChesterfield]

do you have any self employed friends, or mates of mates, who you can get to help you out, it would cost a bit more but least if you dont need them, you dont have to pay them! cost will be around £8 - £10p/h

Ben

 

[samz]

An intern is that it is a student who wants/needs industry knowledge, so you offer them a placement for say 3-6 months and then they either return to education,find a job elsewhere, get another intership.

They get material for their CV (through you teaching and mentoring them), you get the help you need. In some cases, an intern may be offered a job, if one becomes available/the company would like to keep that person on but generally they go back to studying or whatever else.

I have an intern at the moment, I pay her expenses at the moment (you don't have to, this is something you agree with the intern). I am hoping that her input will help the business so much so, that i can keep her on, and so is she. Only time will tell...

 

[matt1983]

I dont know anyone self employed unfortunately and the friends i have said they need to earn what they do in their current jobs to join me which is about £300pw.....needless to say i said no although i dont think i was quite so polite

 

[matt1983]

Its actually not a bad idea an intern, my only worry being a specialised area would be that they leave and either go and work for a competitor or start up on their own?

I suppose you get that with anyone you take on though, what are the legal stands on an intern? do you pay them what you want? is it done through the PAYE system?

 

[samz]

Hi

No, you do not have to pay an intern, I have checked it all out. I asked my intern to sign a confidetiality agreement tailored to my company and an agreement between her and the comapny that she would not disclose any info to a competitior within xxx time, blah blah. I have worked for companies before where I had to do the same, it's not fool proof of course, but at the end of the day, if you employed someone, they could also do the same 'damage' as any intern or apprentice could...right?

 

[matt1983]

Sounds very tempting i must admit, if you do go about paying them etc how do you do it though? PAYE?

 

[samz]

I really wouldnt know, i guess if you pay then they are an employee really, not an intern, so then you may aswell just employ someone on a temporary basis. I have never heard of an unpaid internship, I guess, that's an apprentice then? Maybe you should seek the advice of an accountant regarding apprenticeships vs employing someone, they will advise you regarding PAYE issues.

 

[matt1983]

Is an internship something you could advertise on the jobcenter or would that be completely pointless if its very low wage? im just stuggling to see how i could find the right person who i could potentially bring on board if they get good enough, i suppose a interest in my business area would be a good start and then build from that? or do you approach colleges?

 

[mattley23]

Hiya

Have you thought about getting an intern for a few months then you can assess the viability or hiring someone...

Sam

The only downside to having an intern is generally they are totally wet behind the ears when it comes to 'onsite' practical work and you end up spending all your time talking and walking them through certain jobs, which inevitable slows your own work rate down.

Thats my experience anyway, however im sure it depends what industry your working in as im in the building game and it definately impacted on my productivity. I suppose in an office environment it wouldn't have such an impact??

 

[Postforce]

Matt - where are you in the country and what line of business are you in? - You might find someone on here local to you with similar skills who could help you out on a 'just when you need it' basis.

 

[thebigIAM]

www.humanonline.co.uk/articles/modern-apprenticeship-opening-new-horizons-for-a-better-life_50.html

Advantages of staff: fresh impetus, help keep you motivated, some are capable of doing good work, if you do the modern apprenticeship you seem to escape the obligation of paying the national minimum wage (rates of £85/£90 a week ring a bell), if you pay less than £95 a week you can escape a lot of payroll issues. Some people say the apprentices are more motivated than other employees because they are keen to learn a trade.

Disadvantages: Extra insurance. If you pick a bad 'un, all the horror stories imaginable, plus some regulations can trip the unwary. The 28 holiday days a year can pose some real obstacles for small businesses. The cost of correcting their mistakes, especially in terms of time, can be expensive and exasperating.

Sometimes I think having staff is a price worth paying. Other times I think "that's it. Never again!" At the moment, I'm in more trouble than it's worth mode, but I daresay that might change.

 

[deniser]

I have the same problem as you.

I had a meeting with my accountant yesterday and he told me 2 things:

1. That if you employ someone to help you, they will make you more money, not just by the work they are actually doing but because freeing up some of your time will allow you to concentrate more on the bigger picture which will benefit you financially much more and

2. that one should also consider employing an older person eg. someone who has been made redundant or taken early retirement even if more costly at the outset because the experience they have will more than make up for the higher wages and be more beneficial in the long run (especially if you don't have lots of time to train someone)

I think these are very valid points.

 

[Chris Ashdown]

Depends on what skills you need

You could take on a trainee aged 17 and offer about 20 hours a week and tell them that if the company grows you will give them more work, they may want to continue one day a week at college so both parties gain, they get work and experience from you plus further education, you get a willing helper with limited risk who may have college experience on a course that could also help you