1. Speak to our customer support team live today
    Dismiss Notice
Dismiss Notice
Thanks for visiting The Wholesale Forums! Register for FREE today and gain access to more information. Sign up with Facebook, Twitter, or Google.

Starting Up A Business - A Guide For Newbies

Discussion in 'Start-ups & Business Advice' started by ladyvgw, Nov 27, 2010.

  1. ladyvgw

    ladyvgw

    Joined:
    Aug 14, 2010
    Messages:
    5,097
    Hi all,

    I have written a few guides and posted them on TWF but I thought it was about time I collated all the info into one easy place. Here goes...........

    What to sell

    This is the million dollar question! Basically no one can sell you what to sell, you have to come up with that one on your own. The best piece of advice is to choose a niche that interests you and gets you excited. There is absolutely no point trying to sell something does doesn’t get your blood pumping and makes you jump out of bed in the morning raring to go! Once you have decided on the products you wish to sell then the next step is research........... and lots of it. Find as many people as possible that already sell the items and see how they go about it and find ways to improve on what they are doing. Remember being the cheapest does not always mean you are on the road to success, price is not everything! You can still be more expensive so long as you offer a good all round service, try and find a unique selling point that makes you stand out from the crowd.

    The other piece of advice is don’t run before you can crawl. Start small and reinvest any profits you make into more stock. Gradually widen your product range but be careful not to overstretch yourself, cashflow is key!

    Where do I get it from

    Once you have decided on your chosen product range it is time to start souring. Your first big decision is do I get it from a UK wholesaler or do I go overseas? I shall set out some of the pro and cons for each avenue of sourcing...................

    UK Wholesalers – There are still loads of wholesalers around the UK (although not as many as there used to be!) who will be willing to supply you but remember that you cant just walk in off the street and expect them to serve you. Many wish to preserve their lines of distribution by only selling to registered businesses and wont supply members of the public. To avoid being turned away make sure you go armed with information showing you are a legitimate business. Take headed notepaper, business cards, utility bill, company registration number or any other form of id you can come up with. I have compiled a large list of UK wholesalers that should help you find someone in your area - http://www.thewholesaleforums.co.uk...02257-list-uk-cash-and-carry-wholesalers.html. The downside of using UK wholesalers is that you may find the margins are not what you would expect and also that you might actually be competing against your own supplier as every man and his dog seems to sell on Ebay these days!

    Overseas Suppliers – This mainly covers China as the vast majority of the worlds goods are made there but there are other countries worth looking at if needed. Taiwan, Hong Kong, Singapore, India are all worth a look and even some European countries still have thriving manufacturing industries. It really depends on the type of product you are looking for. If the product you are trying to source is branded and you find a good looking Chinese supplier, STOP!! You will not get genuine branded products from China, they are pretty much all fake! If you do take the risk then fully expect your goods to be seized by customs or maybe not arrive at all. If a deal looks too good to be true then it probably is. Having said this there are plenty of legit suppliers out there it is just a case of researching the company to make sure you are happy with them. Start with sites like DHGate, Alibaba, Global Sources and see how you get on. If you are unsure about a particular company try posting their name on the forum and see if anyone has any experience of using them. For those of you with a little more cash in your pocket I would strongly advise getting on a plane and meeting some suppliers face to face. Read my guide here - http://www.thewholesaleforums.co.uk...191-guide-doing-business-face-face-china.html

    Another very useful way of finding suppliers is to go to a trade exhibition and see what is on offer and try and talk to suppliers and build up a business relationship. Again go armed with info on your business and for gods sake, look professional! Too many times people come on our stand at trade shows looking like they just got out of bed and then wonder why they are not taken seriously. You are projecting an image of your business and if you look like you don’t care about your appearance then suppliers will presume you wont care about running a professional business either. If you cant make it to a trade fair then there are literally thousands of suppliers out there with websites that you can contact. I have compiled a list to make things a bit easier for you - http://www.thewholesaleforums.co.uk...ion/100067-large-list-suppliers-websites.html. One piece of advice I would give is not to email any potential suppliers as this can be easily ignored and most suppliers will pass you off as a time waster. If you are serious about purchasing from someone, send them a letter on headed notepaper, they are much more likely to take you seriously.

    Where to sell it

    Most people start with Ebay as it is the best way to get your goods seen by millions of people for relatively little money. Many people will moan about the fees (me included on occasion) but it really is a good place to start your business and gain experience in buying and selling. Ebay is very cut throat as everyone is trying to undercut each other, my advice would be not to worry about being the cheapest but instead concentrate on offering a good service and visually appealing listings. If you research the do and don’ts of Ebaying then you should be fine.

    You can also try other sites like Amazon and Gumtree but depending on what you are selling you will probably find Ebay is still the best place to sell online.

    Another option is to get out into the wide world and actually interact with fellow human beings. Car boot sales, indoor and out door markets and Christmas fairs can be great venues for selling goods. Research some local attractions and go along and find out about pitch costs and availability. Give it a go you might surprise yourself.

    The next step is to aim at opening your own e-commerce site . Once you have established sales and built up a good customer base then it might be time to spread your wings. There are plenty of pros on the forum that can help you set up a site for relatively little money.

    Registering your business, Tax & VAT

    I have written a whole guide on this subject which you will find here - http://www.thewholesaleforums.co.uk...pany-registration-vat-tax-and-employment.html but the basics are this..............

    When do I register with HMRC – Straight away. They used to give you 30 days to get registered but now you need to do it as close to your first days trading as possible otherwise you may incur a fine.

    Will I have to pay tax? – Yes you will need to do an annual tax return each year and pay tax on any profit your company has earnt.

    Do I need to register for VAT – No, not to begin with. You only register for tax once you have reached the £70,000 per year threshold. It is more hassle than its worth when you are first starting out so don’t let it worry you.

    Book keeping

    This can be the thing that confuses and troubles most start up businesses but once you become used to keeping records it becomes second nature. The most important thing is to keep EVERY receipt and bit of evidence that is pertinent to your business. If you pay for something, anything that is connected with your business then you can claim for it as an expense. When claiming for expenses you total them up for the year and deduct the total from your yearly profit thus paying less tax.

    I have created a basic Excel spreadsheet for book keeping that should get you started - http://www.thewholesaleforums.co.uk...newbies-example-spreadsheet-you-download.html

    This should cover most of the basics to get you started but if you have any specific questions then I am more than happy to try and answer them.

    Vicky :)
  2. Gerrit_Max

    Gerrit_Max

    Joined:
    Sep 3, 2009
    Messages:
    927
    I think you must be one of the most helpful people on this forum Vicky.

    Thank you for another very informative post.


    Gerrit :welldone:
    Salsal Sahib and KristaC like this.
  3. ladyvgw

    ladyvgw

    Joined:
    Aug 14, 2010
    Messages:
    5,097
    Thanks Gerrit,

    I appreciate your kind comments :)
  4. Andy777

    Andy777

    Joined:
    Apr 24, 2007
    Messages:
    23,419
    Great articles all together, well done Vicky!

    Keep up the good work! :welldone:
  5. StephMS

    StephMS

    Joined:
    Nov 14, 2010
    Messages:
    12
    Great guide, thank you!

    A question though - if i've got, say, sets of two different items that i've bought to sell on ebay but I probably won't put any more on anytime soon, ie, this year, do I need to inform HRMC and fill out a self assessment form, etc, for two lots of items?

    Cheers
  6. ladyvgw

    ladyvgw

    Joined:
    Aug 14, 2010
    Messages:
    5,097
    Strictly speaking yes. If you bought them to sell then you must inform them. It might be worth calling them and explaining the situation to see what they say.

    Vicky :)
  7. ladyvgw

    ladyvgw

    Joined:
    Aug 14, 2010
    Messages:
    5,097
    I know it seems daft but if you get caught (which is quite unlikely) then you may well find yourself in hot water! Better safe than sorry if you ask me.

    If you do talk to them let us know what they say.

    Vicky :)
  8. James and James

    James and James

    Joined:
    Aug 12, 2010
    Messages:
    148
    Nice one Vicky :thumbup:, that should be mandatory reading for starry-eyed start-outs!

    For my money, they key points are two you make early on:

    • Love what you're selling - It makes it more fun, more motivating and as a result you'll be in a much better situation to sell it. Enthusiasm for their products makes great sellers great to buy from.
    • Start with a small range - While it's tempting to buy a complete range, or to try and hedge risks over a wider range, there are serious drawbacks. Spread yourself too thin and you won't be able to sell any one item well, and the issue of cash flow is ever present: more lines necessitates more stock.

    The first point should always be true - if you don't enjoy it to start with, success will just mean you're selling thousands of something you still don't like!
    The second can change - range is something to build with confidence, once you're in a position to up-sell and cross-sell then you can make the most of product breadth.

    Thanks again V, look forward to your continued insights!
  9. StephMS

    StephMS

    Joined:
    Nov 14, 2010
    Messages:
    12
    I'll call the taxman tomorrow and see what he says. I earn so little at the moment (student) I doubt they'll take much tax off me, so worst comes to the worst it's more paperwork for me. Nevermind.

    I'm so glad you said that - i've been worrying about setting up with not much stock in case it looks unprofessional, but I guess everyone has to start somewhere.

    Good stuff chaps, cheers! x
  10. ladyvgw

    ladyvgw

    Joined:
    Aug 14, 2010
    Messages:
    5,097
    No worries,

    Dont forget you have a personal tax allowance of £6475, which means you dont pay any tax on earnings up to this amount.

    Vicky :)
  11. had786

    had786

    Joined:
    Sep 12, 2010
    Messages:
    889
    Could you help me please. I was wondering if I had to register by business as I am only 13 and how will a go about doing so
    LiaS likes this.
  12. drewalan

    drewalan

    Joined:
    Dec 4, 2010
    Messages:
    5
    im a newbie and have been researching into starting up a business for days, then i came across this topic and its the most helpful information ive ever read...

    thank you so much ladyvgw......
    KristaC likes this.
  13. Anthony

    Anthony

    Joined:
    Oct 17, 2004
    Messages:
    17,274
    Super contribution, Vicky!

    I've pinned this topic as it should be very helpful for newbies.
  14. drewalan

    drewalan

    Joined:
    Dec 4, 2010
    Messages:
    5
    hi ladyvgw.. can i ask a question...... if a wholesaler requires you to provide ...a VAT registration certificate, Certification of incorporation (private company) and a Company Invoice on registration, would that mean id have to go down the limited company route to provide such certificates....?

    thank you
  15. ladyvgw

    ladyvgw

    Joined:
    Aug 14, 2010
    Messages:
    5,097
    Hi,

    As far as I know you must still register with HMRC but you cant sign any legal documents so you will need a parent or guardian to help you with some aspects of setting up. I would recommend you telephone them and find out the exact details.

    Vicky :)
  16. ladyvgw

    ladyvgw

    Joined:
    Aug 14, 2010
    Messages:
    5,097
    Hi,

    Not necessarily. If the wholesaler is adamant that they must see a vat registration certificate or certificate of incorporation then yes you would have to go down the LTD co. route but to be honest I have never heard of a wholesaler requiring this kind of proof. Most should be happy with a company invoice or paperwork from HMRC showing you are self employed.

    Vicky :)
  17. drewalan

    drewalan

    Joined:
    Dec 4, 2010
    Messages:
    5
    thank you vicky for the advice il make some inquiries ..:)
  18. drewalan

    drewalan

    Joined:
    Dec 4, 2010
    Messages:
    5
    hi vicky.. ive made some enquires and i am a employee of a firm so really i carnt become self employed... but could i still set up a limited company...?

    thank you
  19. sagar.best

    sagar.best

    Joined:
    Dec 24, 2010
    Messages:
    18
    Thank you very much for this stuff, I was looking for a forum just like this. :)
  20. habeeb24

    habeeb24 Banned Member

    Joined:
    Dec 2, 2010
    Messages:
    58
    Really I appreciate your post ..It would be useful to all business people who are all in this forum..Thanks for your good post..
Back to top

Share This Page