Starting up a business what do I need?

Question

If I decided to choose my hobby Card Making as a proper business what would I need?

I would like to set up a card making business. Somewhere you can get all your special occassions stuff from, such as balloons, cards, flowers.

Answer 1

A business plan that will clearly demonstrate the following:

There is a NEED (not a want) in the marketplace for what you are offering
What will make people switch to buying from you from those they already buy from ... what is your competitive advantage
What does you target customer look like: demographics, psycho graphics
How often do these prospective customers buy this type of product? What is their average monthly spending on this type of product? (Read the book: Why People Buy and any Guerrilla Marketing books)
What are your competitors weaknesses, threats (do a SWOT Analysis)
What is your break even point?
How much cash do you have available to cover the business operating expenses including inventory, insurance, taxes, signage, leasehold improvements, rent? Do you have enough to carry all the business expenses for a year without drawing out monies for yourself (Owner's Drawings)?
Who are your suppliers? What are the terms of payment? (consignment, COD, something else)
Who will cover your business if you are ill or unable to work?

It takes a good 6-8 months, with a rigorous marketing campaign, to have a business begin to attract customers.

This is only a short list of things you need to consider. You need to have Passion to do this business.

Good luck.

Answer 2

Untill your making money to live off ignore previous advice and dont register your business or open a business bank account. It will only complicate and add to your cost initially.
Think of it more as a hobby untill you have enough income to live off. On the gov website I think the amount is 12k or 16k income before you even think about having to register. Keep costs down by building up slowly what you need. If you already have a computer You can start up for as little as £200 in business these days. Ebay will work if you have a product thats interesting and differerent enough. Im sure amazon or someone will have a book about the specifics of starting up in your area of interest. Good Luck

Answer 3

Money, money, money, money (capital). Maybe you can use some of the equity in your home to set up an appropriate area in your home for a work area (tax deductible), supplies and the best tools you can get so you can work efficiently, etc. You need to find out if you need a license or if there are any covenants in your neighborhood that would preclude you from doing this at home. I'd talk to a CPA to help you set up a business (LLC). My biggest concern is how will you transact business. Will you do it over the Internet, and if so how will the money exchange hands and how will you charge for and handle shipping. Or will you work out of your minivan and go set up at flee markets, craft shows, or malls when they have certain doings, fairs, etc. I think you should follow your heart and be fearless. You'll find out soon enough what the people like and focus on that. Best of luck.

Answer 4

I have started and sold several business:
First is to really understand the audience you want to provide a service. Talk to some of your friends or interview some people that would be a target....get real feedback on their needs.

Couple of suggestions:
Books: Selling to VITO(Very Important Top Officer)
The Entrepreneur's Manual
Also, there is an entire industry that deals in your areas of interest....it is Promotional Products industry. The large association that provides access to all manufacturers at discounted prices is PPAI Promotional Products Association International. Look them up on the web and contact their membership services manager.
Best of fun

Answer 5

Carla / DS / Police Artist are all correct...

...the first respondent is talking absolute rubbish. For a beginner business like yours, I can't see why you'd need ANY of those things! (The two grand would come in handy, of course, but I can't see you'd actually NEED for what you want to do: all you need do *legally* is register as self-employed and keep lists of all your business costs and sales ready for to put in your tax return at the end of the year.

As for materials, I'd suggest you spend a while looking on the internet, where you'll find keener prices than in your local hobby shop.

Answer 6

Register as self employed by calling tax for self employed persons : 0845 915 4515 and then if you are choosing to charge vat then call them to fill out forms for vat : www.hmrc.gov.uk for all forms on line , If you want to register youre company then call customs house they will charge you a fee of £25 to register the company .
Hope this helps .
Please note that an accountant isnt essential till after trading for one year . To set up a business account all you will need is headed paper with youre company details (doesnt need to be proffessional ) I reccomend Barclays Very good business advisors .
I started my company with one machine that cost me £200 and I got my first major contract with a main car dealer one week into trading . Go for it X

Answer 7

Hello
Starting up in business - the most important thing to know is to buy at one price and sell at a profit.

I hope this helps

Good luck

Answer 8

You need (in no particular order):
1) start-up cash - at least £2000
2) an accountant
3) a bank account
4) premises
5) a legal company eg sole traders, partnership or ltd

Answer 9

Money, contact list of customers, allots of free time to work at your business.