Business Plan

[lews123]

Does anyone have a business plan template for sole trader sparks? I know this should be specific to the business which it will be, just looking for a good base template. Thanks

 

[telectrix]

i have a good, simple business plan. don't spend more than what comes in.

 

[Octopus]

What are you trying to achieve? Are you on the cards and thinking about going SE?

 

[lews123]

What are you trying to achieve? Are you on the cards and thinking about going SE?

Hi Murdoch, think we spoke before. I'm currently employed in the oil & gas and want to get out for family reasons (as we speak I'm onboard for 2 months due home mid jan missing Christmas etc etc)

Anyway yes I am wanting to setup SE. Already got my 17th several years back through apprenticeship, have all the tools. Just been receiving some insurance quotes. I think I will be going with Stroma and from reading previous posts I can see you are with them too. In fact they have been hounding me with emails. I am also doing my 2394/5 end of Feb so just taking this time offshore to brush up on that

Basically just trying to use this time wisely to make sure I'm fully prepared in all areas before I take the plunge very shortly in the new year

 

[Octopus]

So you need a spreadsheet listing ALL the expenses you expect for the year - this will be around £6K, so £500 per month. You need to work out which costs are fixed (insurance, advertising etc) and which are variable (fuel and replacing tools) and list these by month.

You need to record ALL expenditure and keep ALL receipts... and keep copies of ALL the invoices you send out. Others may disagree with this but for the first year you should keep ALL records.

Then you need CASH in the bank - lots of it to ensure you can pay suppliers whilst you are waiting for slow payers.

I would recommend you have a business bank account too, so its totally separate from your personal monies.

Finally it may make sense to delay going SE until the beginning of the next tax year, so you year is the same as the tax year

 

[lews123]

Thanks Murdoch, I've been trawling through old posts etc to try pull as much information together as possible. I agree with you about delaying until the next tax year and I will certainly do this.

Regarding the business bank account... is there any reason why I couldn't just open another personal account and use this purely for business? i.e are there any benefits to having a business account?

Lastly do you have any comments on Stroma?

Thanks for your time it's much appreciated

 

[HandySparks]

So you need a spreadsheet listing ALL the expenses you expect for the year - this will be around £6K, so £500 per month. You need to work out which costs are fixed (insurance, advertising etc) and which are variable (fuel and replacing tools) and list these by month.

You need to record ALL expenditure and keep ALL receipts... and keep copies of ALL the invoices you send out. Others may disagree with this but for the first year you should keep ALL records.

Then you need CASH in the bank - lots of it to ensure you can pay suppliers whilst you are waiting for slow payers.

I would recommend you have a business bank account too, so its totally separate from your personal monies.

Finally it may make sense to delay going SE until the beginning of the next tax year, so you year is the same as the tax year

I'd generally agree it the above. However, you can make your accounting year match the tax year whatever date you start the business (which keeps things 'tidy'). In fact, if your business is to be as a sole trader, there may be some advantage in starting the business and spending out on tools and equipment now, so that the cost can be simply offset against your employed earnings for the current tax year. You may find that you can get a refund on some of the tax already paid out on PAYE.

I'd also say that you need to keep all records (as paper or computer file) for all years, not just the first. Details here:
https://www.gov.uk/self-employed-records/how-long-to-keep-your-records

 

[newtothis]

Templates available from most retail banks websites (Business section)

 

[happysteve]

Prince's Trust (including template): https://princes-trust.org.uk/help-for-young-people/tools-resources/business-tools/business-plans

Re using another personal account: if you can get away with it, why not? Business accounts cost money, usually monthly fees and/or a few pence per transaction in or out. Most personal accounts state in their t&cs for personal use only. If they see lots of different people paying in, and trade expenses going out, they may query it and ultimately close your account. The only advantage I can see of having a business account is you can say to clients, "Just make it payable to [Your company name] Electrical."

 

[Lagentium]

Some good points on here, I am following it as I'm in the same boat as lews123!