fruitisbad Posted January 3, 2012 Share Posted January 3, 2012 It is incredibly hard to start a business up from scratch. The biggest problem is how you fund the business, and lets not forget we have just had christmas. Many businesses, myself included have not operated for 2-3 weeks, yet the bills keep going out of the bank account. In my own case, the logistics of operating in rented rooms, as opposed to being a freelance trainer in a gym were far harder than I expected, and I would imagine this would be the case for other types of businesses. A Plumber working for a company, if he attempted to go it alone would encounter problems that he wouldn't if he remained employed. AS mentioned before, funding is the big problem for a new start up. PErhaps the best way to get round this, is to start to fund a small business while you are still in employment? I think that would be the ideal! If possible go down to 4 days a week, 1 day freelance, then 3 days a week and 2 days freelance. That would mean you still have a regular income to pay the bills, the rent etc. but it allows you to build up a client base. Then ideally you can leave your paid job and be your own boss at the right time. Link to comment Share on other sites More sharing options...
tinfoilhat Posted January 3, 2012 Share Posted January 3, 2012 It's possible but very hard. You can I believe claim tax credits if your self employed and not earning alot. There used to be a grant available from the princes trust for under 25s but not sure if that's still going either. Still, of you are successful ( and well over half will go down the tubes in 6 months) you can bf safe in the knowledge you'll get hammered by all and sundry. I wouldn't do it again. Link to comment Share on other sites More sharing options...
vinyl Posted January 3, 2012 Author Share Posted January 3, 2012 A Sheffielder I know started his business from his back bedroom in 1981, he has grown it slowly so that now he employs over 700 people. He prides himself on not having made anyone redundant in all that time. I know him socially, he is a private man but very good company when you get to know him. Employees of his tell me he is fair but firm, you know where you stand. His personal style is low key, a nice car but not flash. He has lived in the same house for 30years. Kids went to comp and then to university. To my mnd he is the perfect entrepanuer, a man who sees profit as a means to build his business and reward his employees, not to enrich himself at the expense of others. Also brave enough to go self employed, no reliance on state handouts, no boring 9 to 5 public sector non job. A self made man. I admire him. So should you. I know someone who fits your description, but there are plenty of them about. I just wonder why the country holds them in such low regard that many simply leave the country and take the business and jobs overseas. Judging by many of the posts I have seen on the forum many regard self made men as leaches who should be "taxed until the pips squeek", and are happy to see them leave our shores. Link to comment Share on other sites More sharing options...
Bladesman Posted January 3, 2012 Share Posted January 3, 2012 It is possible to start a business and even have rather low overheads just depends what your idea is. Ideally it helps if you start something in an industry you have worked in before. Some people have started some big businesses for not a lot of start up money so it can be done. Link to comment Share on other sites More sharing options...
Mecky Posted January 3, 2012 Share Posted January 3, 2012 With 2.6 million out of work why don't the unemployed start their own businesses? How hard can it be? Not everyone has the capcity to learn how to be self-employed. Being self-employed means other people/businesses will try and put you out of business before you put them out of business. Self-employed doing what - Where to get financial backing, do you think banks lend money just for fun? Link to comment Share on other sites More sharing options...
anywebsite Posted January 3, 2012 Share Posted January 3, 2012 I think that would be the ideal! If possible go down to 4 days a week, 1 day freelance, then 3 days a week and 2 days freelance. That would mean you still have a regular income to pay the bills, the rent etc. but it allows you to build up a client base. Then ideally you can leave your paid job and be your own boss at the right time. Problem is that your employer isn't going to like you setting up in competition with them, so it'd have to be a totally different business to your day job & you'd still need a very understanding employer. If people could keep claiming benefits while setting up their own business & continue to claim some benefits until they were making enough to live off it'd be better. Link to comment Share on other sites More sharing options...
vinyl Posted January 3, 2012 Author Share Posted January 3, 2012 Not everyone has the capcity to learn how to be self-employed. Being self-employed means other people/businesses will try and put you out of business before you put them out of business. Self-employed doing what - Where to get financial backing, do you think banks lend money just for fun? Indeed you are right. So when am entrepreneur starts up a sucessful business he has risked a lot to do it. That probably involves his own capital and his family security, probably even the family home. Should his business prosper and decomes a Dyson or a Gripple and provide jobs for hundreds who didn't take those risks the government would reward him by taking much of any reward his endevour produced. I cut this from an article regarding the 50% tax rate. John Whiting, of the Chartered Institute of Taxation (CIOT), has calculated the sort of extra tax bill some individuals will face. Take someone who earns £200,000 a year and who makes £20,000 of contributions to their pension scheme, which are matched by identical contributions from their employer. In the current tax year 2009-10 their total tax bill, including national insurance contributions (NICs) will come to £67,689. By 2011-12 they will have to pay more as follows: • Tax on employer contributions: 30% on £20,000 = £6,000 • Tax relief on own pension contributions reduced by = £4,000 • Personal allowance lost = £2,590 • Impact of 50% tax rate = £5,000 • NICs: 1% extra on £194,285 = £1,943 • NICs: increase in start point = £91 saved • Total extra tax = £19,442. That is a whopping increase in that person's tax bill of 29%, to £87,131. So after all those risks to get an income of £200K the government would take almost £90K of that leaving only £110K to spend. Then when the entrepreneur dies his family have to pay inheritance tax on the business. It is little wonder that so few bother to start up businesses and that the sucessful ones move abroad. Link to comment Share on other sites More sharing options...
upinwath Posted January 3, 2012 Share Posted January 3, 2012 Because it’s not as easy as it sounds and many self employed businesses fail after considerable investment, so you could lose more than you stand to gain. This is true. Most dole scroungers are short of the brains to do it even if they weren't so lazy. How can these people start a business if they sign on using an "X"? Link to comment Share on other sites More sharing options...
Glamrocker Posted January 3, 2012 Share Posted January 3, 2012 This is true. Most dole scroungers are short of the brains to do it even if they weren't so lazy. How can these people start a business if they sign on using an "X"? They're not that daft ,they let other people work to keep them Link to comment Share on other sites More sharing options...
vinyl Posted January 3, 2012 Author Share Posted January 3, 2012 They're not that daft ,they let other people work to keep them You are right. The government makes it more attractive for some people to live on hand outs than to start a business, because succeeding in business means much of what you earn is taken to pay the benefits for those who didn't. This is why many of our entrepreneurs have taken their ideas and enterprise abroad. Link to comment Share on other sites More sharing options...
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