Setting up new business.

[J.D. Landscaping]

Hi All,

I'm currently looking at starting a new business and although already self employed in a similar sector, I'm looking at an almost fresh start. We will cherry pick the better performing aspects of the current business, Add a few more profitable / saleable products and we will for the first time, lease premises to sell our products from. We have almost always in the past worked from clients properties.

I have completed a cashflow forecast for the first years trading and the figures show a small surplus in cash, which will improve slightly after getting the exact number of months that the landlord is willing to give us rent free, I have also estimated at full rates for the year, as our local council can't, or won't tell me the discount I would be eligible to reclaim ( rateable value is £8700 )

So I wondered what else I should be looking into forecasting or planning, It's been a while since I started in self employment and I have just ambled along to the point where I feel we are going backwards as a company.

I need all the help and guidance I can get from you lovely folk.

Many Thanks in advance.

JD

 

[td2011]

Hi there, I just noticed this was from back in 2008. How did you get on? I hope that you've done well. Starting up a business can always be tough and you need all of the support that you can get. Good luck.

 

[Working First Aid]

The post isn't from 2008 - his join date was...

Otherwise, I would give you a cookie if someone from a 2008 post responded

Shaun
Working First Aid

 

[td2011]

All cookies gratefully received. Thank you for that. td

 

[arsi]

Hi, Grip the rope of hope and work on this business not to leave it.
Good Luck

 

[J.D. Landscaping]

Anybody else care to offer any advice please ?

 

[An Oasis]

Marketing
General running costs
Insurance...

What areas are you struggling with? What sector are you targeting...? Provide people with a bit more detail to work from, will take out some of the guess work.

 

[Working First Aid]

Have you thought about using a business plan writing package?

I'm sure there are some good free ones out there, but I use Business Plan Pro. No idea how it is in relation to the competition, but I do know that what it does offer is a good template/structure for the lay person who doesn't write many business plans to go through, in a methodical process, the steps they need to consider and work on to build a business.

If I was an affiliate i would share an affiliate link, but as I'm not try googling business plan software and compare some of the packages out there.

Also, don't forget business link. The government website for business is actually quite useful as a reference, at least until you start getting in to things quite deeply - they could certainly have something for you there.

Shaun
Working First Aid

 

[J.D. Landscaping]

Marketing
General running costs
Insurance...

What areas are you struggling with? What sector are you targeting...? Provide people with a bit more detail to work from, will take out some of the guess work.

I have all the costs etc covered and I know the markup of the products we will manufacture, What I don't know and should have said was we are going to be a mix of retail and manufacturing, the retail side will be Pet foods and equipment which will tie in niceley with the Pet homes, garden buildings etc we make.

I would like an idea what kind of markup there is on the pet foods, and how to work out cashflow based on the 2 very different items we sell / manufacture, if that makes sense.

Also how important is a business plan, as alluded to above, and should I consider any other financial workings out which would help me make a decision as to the viability of the business ?

Thanks

JD

 

[WJP]

I've always found business plans to be invaluable. Even if you end up tweaking it later in the life of the business, you have something to work from.

 

[An Oasis]

and should I consider any other financial workings out which would help me make a decision as to the viability of the business ?

Every single aspect, even the trivia mounts up and can make a difference between profit V break even V loss in low margin ventures (not saying your is). Don't underestimate any aspect it may come back and bite you in the arse.

I'm not a huge fan of detailed business plans (for small businesses) but writing them does help to clarify aspects that you can be foggy on. And...if you need to source funds you will probably be stuck without one, unless you have a trading record.

 

[WJP]

I'm not a huge fan of detailed business plans (for small businesses) but writing them does help to clarify aspects that you can be foggy on. And...if you need to source funds you will probably be stuck without one, unless you have a trading record.

AO makes some good points, there's no need to get caught up in unnecessary detail when you're a small business. But writing a straightforward, clear plan now will not only help you get your plans in order and look ahead, it will also save you having to write one from scratch if you come to apply for a loan or investment later down the line.

 

[J.D. Landscaping]

Thanks An Oasis, I will look into the business plan later, and will meet with my account later this week, but would still like any advice you good folks can offer !

 

[An Oasis]

AO makes some good points, there's no need to get caught up in unnecessary detail when you're a small business. But writing a straightforward, clear plan now will not only help you get your plans in order and look ahead, it will also save you having to write one from scratch if you come to apply for a loan or investment later down the line.

Thanks Will.

I should have included the phrases "for me" it's a bit of an irrelevance. By the time I've spent time on the calcs (usually very very detailed, with lots of what if scenarios) and mulled over the pros and cons, most of it is in my head, so when I get around to writing one it's more of an exercise than a document in progress.

But thinking back in certainly was not when I first wrote one.

 

[J.D. Landscaping]

A SWOT Analysis seems to be on most check lists of things to do, Is this a good idea folks ?

 

A SWOT Analysis seems to be on most check lists of things to do, Is this a good idea folks ?

A SWOT anaysis is invaluable. Concentrate on weaknesses & threats and question how likely are they to happem, what is the impact and can you mitigate?

Following on, one thing you nneed to be detailed on is cashflows - these should be 'stress tested' using the WTs to see the real impact on your businness. (Remember every plan can be tested to destruction - don't let that put you off, but do be realistic when it comes to likelihood).

 

[robindunne]

Do you have an accountant on board? Not employing one could be a false economy and they can obviously help with numbers.

With regard to the business plan:
- SWOT (Strengths, Weakneses are internal and Opportunities, Threats external)
- PEST (or Pestl)
- What if analysis

.... I could go on....

As a Chartered Management Accountant (recently taken redundancy with a lot of time on my hands) I could help you out - at a massively reduced fee.

 

[J.D. Landscaping]

Thanks for the reply,

I have started on a SWOT analysis using a template from the Businessballs website and it makes so much sense to have these down on paper rather than have them spinning round in my head !

I have completed the cashflow, but can't get an answer on Rates payable from our local Council which is rather annoying.

What are the " WT's" ?

Many Thanks

JD

A SWOT anaysis is invaluable. Concentrate on weaknesses & threats and question how likely are they to happem, what is the impact and can you mitigate?

Following on, one thing you nneed to be detailed on is cashflows - these should be 'stress tested' using the WTs to see the real impact on your businness. (Remember every plan can be tested to destruction - don't let that put you off, but do be realistic when it comes to likelihood).

 

[J.D. Landscaping]

Thanks for the offer Robin, but I do have my accountant looking at this, I just wanted to be as well prepared as possible.


Many Thanks

JD
]

Do you have an accountant on board? Not employing one could be a false economy and they can obviously help with numbers.

With regard to the business plan:
- SWOT (Strengths, Weakneses are internal and Opportunities, Threats external)
- PEST (or Pestl)
- What if analysis

.... I could go on....

As a Chartered Management Accountant (recently taken redundancy with a lot of time on my hands) I could help you out - at a massively reduced fee.