Start up

[Newbie2023]

Hi there, new to this page & what great advice floating around!!
I’m planning to start a small business & planning to trade on Etsy. However I was thinking of starting on Amazon and wondering how it works etc?
Also my main question here is do I need to be registered with HMRC or companies house when starting on Etsy or Amazon?
I’m currently in receipt of UC so would this affect this? Who do I need to notify? So much to think about.

Many thanks

 

[Daybooks]

Firstly you need to consider the legal form you wish to trade as. This could be a sole trader, partnerships or limited companies amongst others. Each formation has its own rules and regulations with a common requirement to pay taxes and keep accounting records. Each method may also have benefits not accruing to others so forward planning is essential.

Government websites - both HMRC and Companies House give you sufficient guidance. Please get informed appropriately before making irreversible decisions. There are many posts on this forum where lack of planning has caused problems. Please don’t add to them and good luck.

 

[DoolallyTap]

Hi there, new to this page & what great advice floating around!!
I’m planning to start a small business & planning to trade on Etsy. However I was thinking of starting on Amazon and wondering how it works etc?
Also my main question here is do I need to be registered with HMRC or companies house when starting on Etsy or Amazon?
I’m currently in receipt of UC so would this affect this? Who do I need to notify? So much to think about.

Many thanks

Forget what you call your main question, and any other thoughts about registering anywhere for anything, that can all come later.
Start with How much cash do I have?
Can I afford to loose ALL my cash?
Write a short business plan, even if you don't want or need to borrow money, write it for yourself, short, back of an envelope style, then research, research and more research and when you think you have done ALL the research do it all again.
What are you going to do? Make it? Buy and resell it?
Now produce you P/F forecast, be pessimistic, this will show you how much you need to invest and how many month/years before you see any profit.
Whatever you do, eBay, Facebook, Etsy, Amazon, Website, shop, market stall, whatever, you will need stock, (assuming you are not making something very special on private commissions)
Where do you get your components if you make it? or finished product if you buy to resell, back to more research, then consider buying from Alibaba, Import, wholesale? Back to question 1.
Somewhere to put that pile of stock, back bedroom or warehouse? warehouse costs will be in the P/L
Processing your orders, picking, packing, postage or other delivery methods. Is it a big product, need a van, costed into the P/L.
And on and on and on, Is UC, Universal Credit? back to question 1

 

[Paul Kelly ICHYB]

You do not need to register with HMRC at first. You will have to register once you have sold more than £1000.

Go to your local council and see if they can offer some business support and advice.

Re Amazon, there is a lot of good guides and advice out there, but ensure you know about all selling options - if you want to also sell on Etsy, I assume you are making things - Amazon have a 'Hand Made' seller option that might work for you.


Ensure you set up your own website and guide every third party purchase to it.

 

[fantheflames]

What type of product will you be selling? Some products that sell on Etsy most likely wouldn't 'fit' for Amazon. You don't have to be registered immediately, but would need to register in advance of sorting your taxes out. Your Universal Credit claim might be affected, but you'd need to speak to them first as you may have to declare income before you are paid by the State. Your income will reduce your benefit as you are increasing your earnings.

 

[sofiyah]

Hiya, I'm a newbie myself I'm in a similar boat to you. Planning to launch some skincare products, I'm hoping to sell on Etsy and on social media. How far are you with your business plan? I've created mine but have changed a lot of it since enrolling in a free business course by Piers Linney, Founder of Moblox & former investor on Dragons Den. You should check them out & sign up to the community if you would like the course www.moblox.com hope this helps!

 

[Mr D]

Universal credit and business can be a bad mix. Can still get universal credit - but its not going to be easy to get much.

Universal Credit payments if you're self-employed

Find out how your self-employed Universal Credit payments work, including how the DWP calculates your payments based on your income floor.

www.citizensadvice.org.uk

Basically they will treat you as earning plenty. Reality of setting up and getting going is a lot of what you do will not actually earn you anything.
And with current economic climate you may find that despite selling on multiple websites that it takes a while (years even) to get going enough to make a living from the business.

Etsy, amazon - there will be other sites too. Be sure to read up on how each site handles payment, you could be receiving the money weeks after posting the item to the buyer.

Its not a question of if you list it for sale people will buy. Its a question of being found out of the millions of items on a site, and customers having the money to buy. And choosing to buy your item over the very similar item someone else is selling next to you.
Not helped by those who don't care about making money who will undercut you and those who do need the sale who will undercut you.

From what I've seen most of those who set out to run a business while on universal credit don't make it.
Businesses usually have a high failure rate (under normal circumstances over half don't last more than a few years, some last mere months). Now? Tougher trading conditions than I've ever seen.