Considering starting my own business for first time.

[Booh]

Hi all, I am considering starting a small business.

I have a business idea and i have spotted a premises that would suit.

Never done this before and I am at the very very very beginning of this process. I am currently, and have always been a PAYE worker to date. I have a few questions for all of you experienced AAM'ers out there.

Leasing a premises.

Q - Typically how does the process of getting a lease on a premises work?

Q - Will I have to Buy the Lease and then pay rent, or can I just pay rent. Premises is vacant. Presumably the "purchase" of any lease on any vacant premises is negotaible right now.

Q - In order to get the lease and start the business will I need to show the landlord a business plan?

Business PLan
Q - Is there a specific format for preparing a business plan? Does it need to be done or aproved by anyone or is it simply my plan committed to paper?

Formation of Business
Q - What criteria determines the right types of business to form,i.e. Ltd Company, SOle Trader, Partnership etc. For example I plan to run this business with my better half, we need to have a premises, we will be supplying a service, we need to be able to accept payment by Credit card, we will need to have public liability insurance etc etc ..does that rule out certain tyopes of business?

I know ultimately I will need to speak to an accountant and probably a solicitor to get things set up right, but before I do I would appreciate some ideas and information.

Many thanks.

 

[Domo]

Whether you go Partnership (you won't be sole trader if your wife is a partner) or Ltd company will depend on many factors. You should take professional advice.

Do you really need a premises if you are providing a service. Could you not work from home? This would cut costs.

Business Plan- there are various formats available - do a google. You will probably need help with doing this - contact your local Enterprise Board - they are very helpful.

Your landlord should not need a copy of your business plan - you will be signing a lease.

You need legal advice regarding a lease.

I would suggest a start your own busness course before you dive in - there are lots of them about run by Enterprise Boards, and Adult Education facilities.

 

[rustytimber]

I've recently agreed a lease on a premises. Make sure you shop around. Some landlords are still in Celtic Tiger mode but others are more flexible. I've got a rent free period from the start and the landlord is doing some building work, dividing wall, doorway, toilets etc on the basis of a gentlemans agreement before the lease is signed. Also make sure you get a break clause in your lease.

 

[sartay]

I recently posted this on another thread about choosing between limited companies and sole trade/partnerships - don't know if it was any help to the other person but here it is:
[broken link removed]

There's also one about writing business plans:

[broken link removed]

I would agree with Domo about contacting your local enterprise board. Here is a link to their info on business plans on their website. You can download a template there too.
http://www.dceb.ie/starting-a-business/business-plan

 

[jack2009]

I think you should take a step back before signing up on any lease.

Draw up your business plan!

Decide on what form your business should take ie sole trader or a company! to do this you need to understand the advantages of each!

In the current climate your potential landlord will be lucky to get a tenant so you should not have to pay any key money. But would suggest that you do not sign up on any lease until you are ready to move into the premesis ie no point signing up now if you have not even got your business plan.

A business plan can be drawn up by anybody even yourself but spend time on it and be super critical. and in the current climate more than ever before concentrate on your cash projections.

 

[iggy]

Hi Booh,
On the question of leasing the premises I would much prefer to just do a straight rent deal from week to week or month to month until you see how your new venture performs.
If the business doesn`t work out and you have signed a lease agreement you are obliged to shell out regardless.
In todays climate there should be no question of any key money either unless the premises you are considering has/had a business which was beneficial to yours even then I would be reluctant to pay key money.
Most commercial landlords are happy to get a tenant at all at the moment.
Best of luck with your venture.

 

[BetterBiz]

I would agree with the previous posts saying you need to draw up your plan first. Often I see small business owners get so carried away with securing a premises and fitting it out that they give no thought and have no budget for marketing and getting customers.

Don't fall into this trap as you will work really hard only to open your doors and find out the hard way you have no customers.

Always with a start up idea I would suggest finding a low cost way to test out the business idea. Do you really need a dedicated premises from day one?

Can you sublet a small bit of space from a non competing business that services the same target market?

Can you dip you toe in the water by taking a stall at a market?

Can you sell direct with no premises?

Trying and testing small without 'betting the farm' can pay dividends in the long term even if having your own premises can seem like a great idea initially, if you are not careful it could end up being a mill stone around your neck.

Good luck!

 

[Booh]

thank you all very much for your contributions and excellent advice. Much appreciated and I will definately take it all on board.

Booh

 

[QED]

Often I see small business owners get so carried away with securing a premises and fitting it out that they give no thought and have no budget for marketing and getting customers. /quote]

I fully agree - lack of cash coming in the door is the (main) reason why businesses fail.

Before moving any further, you need to work out how realistic your revenue targets are in the real world. This is before you consider profit margin, expenses etc.

For example: if customers will spend an average of €10 per sale and a shop is open 48 hours per week (8hrs X 6), you need an average of 5 paying customers every hour that your shop is open in the year just to take in €100,000 net after VAT.

You need to work out your annual target for gross sales and see if it it realistic (not just a nice target) given location, average spend etc.