Startup business advice..help!!

A4Hiwayman

Free Member
Jun 21, 2011
9
1
Blachburn
Here's a brief breakdown of my current situation.
After years of running and managing e-commerce businesses for other people I decided time was right to start my own business.
I took a lump sum from my pension pot which was intended to be the funds to start my own business.
I invested about 30% of it in stock and setting up the business, website, hosting, Google advertising etc. The rest of the money was used to support myself during the first year.
I registered a Ltd company and set myself up as self-employed.
I have currently been working to get the business off the ground. Unfortunately I wasted the first 3-4 months on a venture that failed to get of the ground due to unforeseen circumstances. Luckily I hadn't invested in stock. Just lots of time.
The current venture is slowly picking up with about £400 in sales so far this month. I'm still using my own money to cover the day to day running costs of the company as well as my own living expenses.
I currently have enough money to support myself for about 6 months.

I am generally after any advice from members as to my current approach with regards to bankrolling the company with my own money. How does this effect my accounting? Business loans? Accountants? Business bank account to separate the finances? HELP!! I'm really struggling with what is the best route to follow and who to speak to. I'll be great full for any advice.
 
  • Like
Reactions: Nochexman

Mr D

Free Member
Feb 12, 2017
28,924
3,630
Stirling
You have a limited company or you are self employed?

Presuming limited company, money you put in would be in your directors loan account - meaning later on you can get that out without it being subject to tax.

Limited company should have a separate bank account, your bank usually requires a business account. Relatively cheap.

As your business grows (quarter 1 is not always the best quarter) then hopefully you should be able to taper off bankrolling it. Very small businesses online can be incredibly inefficient, things do get easier as you grow.

May be years before it can support you though.
 
Upvote 0

fisicx

Moderator
Sep 12, 2006
46,699
8
15,380
Aldershot
www.aerin.co.uk
Agree with that.

It can take years before a website is self funding and even longer before it earns you a living.

5 years is a good number to aim for.
 
Upvote 0

Latest Articles

Join UK Business Forums for free business advice