Submitting stats to the Government

For the past few months our business (Serenity Baby) has been sent questionnaires from the government's Office of National Statistics. According to the letters we are required by law to submit these figures.

So far the questions usually ask for our monthly retail turnover, and how much of that was generated by online sales. They once asked for the number of employees, part and full time as well as the breakdown by gender.

I have found it a bit annoying to have to fill in this data, especially as they want the info really soon after the accounting period (I've just submitted the figures for July), and so this forces me to do our monthly accounts sooner than I would have otherwise. But, now I'm feeling a little bit pleased that our small business is being recognised as a part of the economy, and is providing data which will help the Office of National Statistics to monitor the progress of the retail sector and ultimately could inform policy decisions.

How much space do you need to run a business from home?

Our house is full to the brim. We live in a modest 3 bedroom new build, where the downstairs has a kitchen and an everything-else room. The small lounge has to function as a kids play room, adults sitting room and our office. With 3 small children space really is at a premium.

We run an online e-commerce business, ie we sell stuff online, mostly via ebay and Amazon. This means that we have a significant amount of stock to store, plus all of the associated packaging. We have a computer and printer that need to be available all of the time. We have files for accounts etc and several in-trays worth of ongoing paperwork.

Being a self-employed mum means that I am always trying to figure out how to store away all of this stuff. Our stock lives in the garage, and we have a large unit in the garage which is full of various sizes of packaging material, labels and flyers. Inside the house I keep our files etc stored out of sight in a cupboard. But realistically there is always a lot of paperwork floating around looking unsightly.

A major factor for us is that we now store ta significant amount of stock at one of Amazon's warehouses and get them to post the goods out to customers. This means that we are able to carry on our operations without needing to hire our own storage space.

Don't let lack of space be a barrier to working for yourself. With many businesses you can get up and running with just yourself and a laptop. The rest can be figured out as you go...

Keeping track of your accounts

Getting started

Over the past 5 years of running my own business I've had to learn some basic accounting. I started off with keeping simple records on an excel spreadsheet. This is the bare minimum which I'd recommend to anyone starting their own business. Write your income in one column and your expenses in the next. Keep all of your receipts. It's a good idea to start as you mean to go on so buy a few ring binders. Use one for your bank statements and one for your purchase invoices.

If (like me) you are liable to leaving bits of paper hanging around then find a place to store them. I have an in-tray in my cupboard where I put all of the invoices and bank statements that come in. Then every few months I go through them and sort everything out, input it in the computer and file everything away.

Ideally you want to sort out your accounts every 1-3 months. It makes it much easier to figure out any problems as you go along. You can also use your bank statements to check that you have accounted for everything.

Increasing complexity

A couple of years into running my business I realised that I needed some proper accounting software. I decided to use Sage and have been now using it for 3 years (www.sage.co.uk). You can either buy a version for your computer or use an online version. There are of course other software packages you can use so do shop around and find what best fits your needs.

Have a think about what you need out of your accounts. For us there were 3 main areas: 1) ensuring we are compliant with the law 2) being able to understand the figures from our business in order to plan for the future and 3) to see if we could afford a mortgage. It was for these three reasons that in addition to using Sage for our book-keeping we also took the step of using an accountant.

Employing an accountant

Last year we made the decision to employ the services of an accountant. To give you an idea of costs she charged us £550 for the year to be available for advice and to prepare our end of year accounts, and our individual and partnership tax returns. This was definitely value for money as our accountant helped us identify various errors amounting to far more than we paid her.

We still do the day to day book-keeping as above (although you can pay for that service too) but having the ability to accurately account for everything has enabled us to keep a much closer eye on our business and gives us the facts to inform business decisions.


That's all for now! I'll be writing about some specific accounting topics in the future...

Featured Business: All Things Bikes

Guest Post: To inspire and inform... here is the story of successful business 'All Things Bikes' as told by founder Alex.

www.allthingsbikes.com

The decision to leave paid employment and start working for ourselves wasn’t one we took lightly. Like many people, my partner and I had often dreamed of leaving the corporate rat race with it targets, deadlines and politics behind and getting the perfect work life balance by setting up our own business and having the ability to decide how hard we wanted to work. Again like most people, these the dreams were often dreamt whilst on holiday relaxing without a care in the world except deciding whether it was worth rolling over to top up the sun tan lotion.

For us, our business grew from what was essentially a hobby. I’ve always loved cycling and got my first proper bike at age six. Growing up in the coastal town of Bournemouth in the 80s, the I took full advantage of the freedom that cycling gave me to roam and explore the New Forest cycle tracks, Hengistbury Head, Corfe Castle and the plethora of other places that might have been inaccessible to me had I had to rely on public transport or the taxi of mum and dad.

As my interest grew, like many kids, I coveted the latest and greatest models as they came out (in my case it was the dream of owning my very own 1984 Kestrel MXZ) but unfortunately at circa £2200.00 a pop, these was far outside my teenage budget. That didn’t stop me dreaming though and once I could afford to I began my search for the bike of my dreams.

Obviously almost 25 years after the MXZs hit the market, I couldn’t just walk into a shop and buy one off the shelf and I found that the second hand ones that infrequently popped up on internet auction sites were either in very poor condition having been chucked into the back of a shed for two decades or worse still been so “upgraded” with cheap “modern” parts that they bore very little resemblance to the design beauties they once were.

So I decided to build my dream bike from scratch and instead of looking for a complete bike, I started my hunt for the original parts piece by piece. This introduced me to a whole world of similar minded enthusiasts – People who like me were trying to recreate a childhood fantasy and would go to the ends of the earth to find authentic original pieces to complete their projects.

Whilst on the hunt for my own parts, I began to find other parts that people were looking for, people started asking me to source parts for them and as time went one my opinion and advice was sought on all things bike related. And so All Things Bikes was born in the summer of 2010.

Although I registered myself as a sole trader at this point, I still wasn’t ready to fly solo and I didn’t want to completely leave the relative security of a regular salary, so along with my partner we began to work on building the business up to an extent that we could rely on it to support both of us.

Because of the line of business we were into, we found that social media was key to getting the word out about what we did. We wanted to build our own community of like minded people whilst not alienating those new to cycling so from the very start we chose to use our Facebook page to share cool pictures and project details rather than a means of advertising out products per se. We have dabbled a bit in Twitter and Pinterest and will probably do more with these platforms soon but for now Facebook is working really well for us.

My partner and I both finally left our jobs this year – She went first in February and I was close behind her saying my final goodbye to the 9-5 life at the end of March. We knew we were ready having saved our target sum of money to cover our baseline monthly expenses for around 6 months, and paid off any outstanding loans we could afford to as well.

It hasn’t all been plain sailing however, although we love working for ourselves and the dealing with (and learning from) the day to day challenges as they come up, having both worked salaried jobs for close to 2 decades, of course we sometimes have a little panic when we have a quiet day on the sales side and wonder if it is the beginning of a downwards slide.

Many years ago someone asked me if I would rather look back on my life in my twilight years and regret the things I had done or the things I HADN’T done… I didn’t have to think very long to realize what my answer was so, now, we’re mostly pinching ourselves in disbelief that we finally did it… We’ve made the jump and done what so many people only dream of doing.

Our two biggest challenges from the start have been sourcing parts (we can’t just buy them from manufacturers so we need to spend a considerable amount of time trawling the internet for used parts or bikes being sold for parts or repair) and getting our website right.

The former, I believe will always be a challenge but in some ways, that’s fine as that is why businesses such as ours exist. The latter though, is a problem we are currently working on, and although Allthingsbikes.com exists and has for quite a few years now, we are in the process of developing our brand new website with will include a blog / forum section and a for sale ecommerce section allowing customers to by directly thorough the website rather than through our eBay shop as is mostly the case at present. We hope to launch the new site in late summer / autumn 2014.

We’ve learnt a few things along the way, both from experience and from invaluable advise found online or given to us by others. Here are my top five tips for anybody thinking of not only starting their own business, but also planning for that business to be their sole (or at least main) source of income:

1) Sort out your finances – It seems obvious, but the last thing you want to do when you re trying to build a new business is to be worrying about where your next meal is coming from. Whether you choose to go it alone like we did and save until you have a few months worth of bills in your savings account, or you decide to get outside help from the bank, government grants or even the general public, make sure you know how you re going to support yourself and run your business in your first 6 to 12 months

2) Choose something you actually enjoy! Even if you aren’t completely gaga about your product or service, it helps if you at least like it! Remember the top reason people leave work to set up on their own is because they don’t like their job… Why then would you replace it with something else you don’t like? A wise man once said: “Choose a job you love, and you will never have to work a day in your life”… Makes sense.

3) Don’t hide it under a bushel: One of my early mistakes was not talking over my plans with others for fear that they would either steal my idea or laugh it out of the room. Truth is, we all need to hear a different perspective to avoid missing obvious problems or gaps in our plans. I read a great LinkedIn post on the topic recently that puts the point across a lot more succinctly than I could. If you are interested, you can find the post here

4) Understand your customer. In order to get anything right – from your website, your tone and style on social media, your choice of social media platform, your choice of product or service, in fact anything at all, you need to know who your customer is. Our website build is taking longer to complete as we are currently doing a lot of work to understand not just the age and gender of our customers, but where they live, what they typically do for a living, what the read / watch play etc so that we can understand the different personas that engage with us and make better product choices and marketing decisions to suit them.

5) Remember to be kind to yourself! Again, this may sound obvious, but in the first month after we left our jobs we literally worked ourselves ragged such was the fear of failure! Having talked to a few friends that are self-employed, we now try to take a lunch break and get at least 30 minutes of exercise each day. We still sometimes get carried away and forget to take a break, but these days it usually because we are really excited about something and forget to slow down rather than that we are too scared to.

The reality is that we’ve never worked harder and we still have things to worry about but we would not change our decision to start working for ourselves for anything. The biggest plusses from my point of view are: The fact that we are much more in control of our time, we now are able to fit in regular exercise (something we couldn’t while commuting because of our long hours) meaning that we feel healthier and less stressed, we can really spend time researching ways to expand the business and take it to the next level, and finally we can put to use all the experience we gained working full time for other people and making profits for them!

Filing your VAT return

We recently registered for VAT and I had to file my first quarterly return. It was quite a headache and I had an accountant to help me. So how does it all work?

Your business must register for VAT if the goods you are selling pass a threshold set by HMRC. The VAT threshold for 2014 is £81,000. It goes up each year so be sure to look it up on HMRC's website: http://www.hmrc.gov.uk/vat/forms-rates/rates/rates-thresholds.htm#2

Sounds simple enough. But as our business sells online mainly via Ebay and Amazon we came across all kinds of problems. Firstly we were only counting the income which Amazon passes on to us every fortnight. But, the sales income has to be what is being charged to the customer. Therefore our accounts now show what the customer paid (including postage) and then the portion that Amazon takes in seller fees.

The next challenge we had was that from everything we read on HMRC's website we understood that sales outside of the EU are exempt from VAT. Whilst this is true, those sales still count towards the threshold. So, if you sold £81,000 worth of goods, and £10,000 were to the USA you would still need to register for VAT but only pay VAT on the £71,000 sold here in the UK or in the EU.

Just to clarify, you pay VAT on goods sold within the UK and also goods sold within the EU. At the moment the VAT rate is 20%, so you need to factor that into your sales price.

Our final challenge was that some of the items we sell are zero rated for VAT. We sell baby clothes and items on which VAT is not charged. You do not include those sales in your calculation of the VAT threshold. So if our overall sales were £81,000 but £10,000 of those were of baby clothes then we would not need to register for VAT.

As it turned out we were well past the threshold and because of this misunderstanding about including our worldwide sales we registered late for VAT. We had to fill in a form to explain why we were registering late, and we were liable for a penalty or a fine. Thankfully HMRC accepted that this was a genuine mistake and we did not have to pay a penalty.

Remember, when calculating the VAT threshold you need to use a rolling 12 months figure. So whilst your accounts might show what you made during 2013, you need to look at what you made in the previous 12 months from now.

So what has registering for VAT done for our sales? We have had to put the prices up, but not by 20%. On the items for which we charge VAT (usually maternity clothes) we are already paying VAT to our suppliers when we purchase the items. When you do a quarterly VAT return you have to calculate what you have already paid in VAT to any of your suppliers.

Sales have definitely been affected by us registering for VAT but we diversifying in order to compensate. We are increasing our products which are exempt from VAT and also working harder to make sure our prices are as low as possible and that we offer sales all across the world.

How do you manage work during the school holidays?

Let me start by saying I don't have a good answer for this question! One of the main ideas of running your own business is to have the flexibility of being around for the children. In some industries it may be possible to not take on any work over the holidays and therefore resolve the problem. Inevitably that means doing extra work before and after the holidays.

Some families manage to continue their childcare arrangements during the holidays by keeping children in nursery or by enlisting the help of grandparents. This is a good solution if it means that you can get a few hours work done here and there.

In my case I have one child at school, one in pre-school 3 mornings a week and an 18 month old who is always at home. So during the school holidays all 3 children are at home. I have not yet managed to find an ideal way to manage both my business and childcare so we just make the best of it. Luckily my business (selling maternity and baby clothes online) means that I don't have a set amount of work each day. I need to dispatch parcels on a daily basis but that can take anywhere from 20 mins to 1 hour to pack plus a couple of visits to the post office. If that is all I do then we can easily manage days out and have tons of fun together. There are plenty of other tasks that I need to be getting on with (preparing the end of year accounts, ordering stock, preparing stock to send to Amazon's warehouse, doing my VAT return...) and so I just have to figure out how and when to do those.

Some of the smaller jobs I just get on with whilst the children are playing together or even (bad mummy warning!) watching TV. I plan to get loads done in the evenings but most of the time I'm just too tired by the end of the day. Some jobs such as preparing parcels and stock my older children like to 'help' with so I let them assist with the bits they can do.

In conclusion, you probably just have to muddle through - much like the rest of the year! My feeling is that is still well worth the hassle though.

Taking the plunge: time for expansion?

My advice so far in this blog and to anyone who asks is that you should do as much as you can without spending any money. I have steered clear of upfront investment and favoured organic growth. But now my business has come to a stage where I feel that an injection of capital could really push it forward.

At what point do you take that step? If there is a clear project which needs investment then the answer might be more straightforward. In my business I sell maternity and baby products online so there is no pressing need for investment. Except that my stock sells out and I feel that I could gain additional sales and grow the business if I had more to invest.

What I have done is to write my business plan for the next 3 months (I now keep it as an online document so it can keep being updated and I have diary reminders for when the next plan is due) and am outlining what exactly could be purchased so that I know what size of investment would be healthy for the business. I will also need to keep a close eye on what the cost of borrowing is, to make sure it won't push up the price I charge to customers, and of course I need to be sure that I can meet the monthly repayments. The theory is that the rise in income should more than cover the repayments so some projections for turnover need to be included.

Once I have this information I can apply for a loan for a reasonably short time (1-2 years) and I'll know exactly how the money will be spent. My fear in doing this is that I'll be saddled with debt repayments without seeing the requisite increase in turnover. But, I should at least be able to recover the cost price of my stock, so it should be a worry-free strategy!

Maternity top with the background removed

The real background - putting the stair gate to good use!

How much storage do you need for an online business?

So there are all the wonderful benefits of running your business from home, but when 9 boxes show up at the door then it does remind you of the downside! Thankfully these boxes were able to be sorted out within 24 hours. Eight boxes were just picked up to be sent to Amazon's warehouse, and the remaining one has been put into our garage.

We sell maternity and baby clothes on ebay and Amazon so our entire garage is taken up with stock, and as you can see our hallway does suffer too!

If you are thinking of starting an online business you may need to consider storage. For a startup company you can probably fit stuff on a shelving unit in one of your bedrooms, or in a garage or shed. Don't forget to consider damp and also security. At some point you will need stock insurance and most insurers won't cover you for wooden structures like sheds.

On the plus side you can count the cost of your rent or mortgage for that portion of your property which is used for your business. So if like us your garage is used exclusively for your business then you can put a sensible price on that (as a percentage of your monthly rent / mortgage) and include it in your costs which in turn lowers your tax bill. You can also claim the same percentage of your council tax. Treat it just like you would if you were hiring a commercial unit for running your business.

We always assumed that as our business grew we would need to rent a storage unit or ideally buy a bigger house! But as it has turned out we now send a lot of our stock to Amazon who post it out for us. In our particular situation this has worked out well.

All in all though I'll happily take the inconvenience of having my hallway stuffed with boxes rather than have to pay for the children to go to nursery whilst I go out to work elsewhere. And look, I can even get them to help me with processing stock! (The one around her neck is our own... I am keeping a close eye on the stock!)

Can you still make money from ebay?

Still seen as an auction site for second hand goods, sales on ebay continue to grow. Internet sales as a whole contribute more than 14% of all UK retail and this is predicted to grow to 26% in 2016. The UK is already the most internet-based country in the world, according to a report by the Boston Consulting Group.

Many of us do use ebay to sell on unwanted goods, or to shop for a bargain. But, many businesses exist either entirely by selling on ebay, or by mixing their ebay sales with other online platforms or a physical shop. Is there still money to be made?

If you have a business idea you need to look at the sector and see if there is a space for you in the marketplace. If you have come up with a fantastic new invention then you may create your own space in the market by fulfilling a need, but many businesses are selling something that others are selling. If you are setting up a bakery you would want to do so in an area with a high footfall of people but without an existing bakery. If you are choosing to sell online then you would be competing with other online retailers. You would want to stand out by offering good value for money and excellent customer service. 

But, remember that online sales are growing overall, which means that there may be extra room in the marketplace for more sellers. Of course it is not as simple as that, and you need to ensure that you choose a sector which is growing rather than shrinking in the economic downturn. A quick spot of googling should answer that question for you. Remember that people are hunting for a bargain in the economic downturn so if you can sell essential goods at bargain prices you could be on to a good thing.

For an article on the fastest growing sectors in 2013 check out this article from 'startups': http://startups.co.uk/what-business-should-you-start-12-fast-growing-sectors-in-2013/

Why ebay though? I frequently get asked why I sell on ebay and Amazon rather than my own site. The simple answer is that these two internet giants drive a huge number of customers to my products. I do have my own site and I periodically spend time trying to improve the site and money trying to attract customers but to little avail. Ebay takes around 10% of everything that I sell, but for that it provides most of my marketing, customer footfall and technological support. I reckon that's a good deal. Amazon charges higher fees but seems to attract more customers (at least to my products) and those customers are prepared to pay for good quality items.

So in summary, research your sector, check out your competitors, and give it a try. Think about who your customers are. My main business is maternity clothes and babywear. My customers are often pregnant women who want the convenience and choice of shopping online rather than trawling the high street which only has a small quantity of maternity clothes. I believe that for the right business in the right sector there is still money to be made from ebay. Go forth and prove me right!

Register as self-employed

As soon as you get started it is vital to register as self-employed with HMRC (in the UK). This is a very quick process - either a short phone call or filling an online form is all it takes. Please be aware this is a legal requirement and really cannot be overlooked.

You might be unsure whether you need to register, but if you are trading at all then you should be registered even if you are making a loss or have no income from your self-employment.

There are 3 main types of self-employment:

Sole trader
If you are working alone then this is you. It could apply to a plumber, market stall trader, ebay seller, accountant or consultant. There will be a tax return to fill in at the end of the year in which you report everything you earned and everything you spent. If there is any profit then this is liable for taxation.

Partnership
If you are working with another person, eg your spouse or a friend, then you should register as a partnership. This means you are jointly responsible for the business and can share the profits. You set the percentage that each partner is entitled to. Each partner needs to fill in a personal tax return at the end of the year, and you also need to fill in a partnership tax return.

Limited company
This is a more complex mechanism and involves more paperwork. If you register as a company then you create an entity which is separate from you. You become a 'Director' of the company rather than being a sole trader and this can have some savings when it comes to paying tax.

Find more info at http://www.hmrc.gov.uk/selfemployed/

Don't neglect the paperwork!

Getting Started - Initial Investments

Finding the money

As you probably know, few businesses can provide a decent income in the first year of trading. If you keep costs to a bare minimum you may be able to turn a good profit, but you'll find that you need most if not all of that money to re-invest in your business to make it grow. We are constantly facing that problem. The more money we put in, the faster our business will grow, but we really need to draw a salary out of it now! One solution to this problem is to borrow a lump sum to either get things started or push forward growth. If your idea is solid and proven then this might well be a good strategy, but don't forget to calculate interest payments into your margins.

Lets say you want to buy 100 pairs of jeans which cost £5 each. You need an initial investment of £500 so you take out a loan. You find you can sell to customers at £10, and it costs you £1 to sell each pair, eg on eBay. You are left with £4. But, you also need to repay the loan interest. If your interest was 5.5% then you are paying £27.50 a month extra, or 28p per pair of jeans in the first month and more as the months go past. Provided you can sell the jeans relatively quickly then you can still turn a good profit. Also beware of VAT! Many suppliers quote prices without VAT, so when you come to pay you realise the jeans cost £5 + VAT at 20% which = £6 a pair.

You should do all of these calculations before you borrow the money. Don't just borrow a lump sum to get started. Borrow only what you need at the outset, as paying back the loan might hinder further growth.

Ideally you will be able to the invest the £500 from some of your own income. I started my eBay business with about £50 of my own money and grew it from there. But, I hardly withdrew any salary for the first 3 years and invested all of my profits straight back into the business. Now after 5 years I am expecting to see an annual pre-tax profit of £14-£16,000.

Getting established

It is soooo tempting to invest in lots of things. Office space, office equipment, signs, logos, stationary, web designers etc etc. Spend as little as you possibly can to start with, and be satisfied with a 'soft launch'. If your business is PR or marketing then yes you probably do need a big launch with everything perfectly finished. But, for most businesses you can start with what you've got and then grow and improve. You can design your own website for free using software like google sites. You can promote your business on Facebook, Twitter, Google + and Pinterest.

A key part of your business plan should be asking 'how will people know about my product / service?' If you are offering something locally then you might want to invest in marketing materials, eg flyers and/or online adverts. If you are starting a website then you may need to pay for online adverts such as Google and Facebook ads. But, plan your investment carefully and figure out what your money is likely to get you in return.

Write your business plan
You know you need to do it, but it can feel like a real chore. Writing a basic business plan is an essential aspect of being prepared. Write if for yourself rather than for an external agency such as a bank. I now have a 3 month business plan which is an ongoing document that I never really view as complete. I make small alterations to the plan as I'm going along, and of course write a new plan every 3 months. Your first plan needs to take a longer term view and also needs to make some financial predictions.

You don't need to have a complicated structure. Set out your idea - what you want to do, why, and how. Think about why this business is needed in this area. Think about what skills you can bring to the business. Include an assessment of the finances for the first year: include all possible costs and a prediction of the income. Include a 'SWOT analysis' in which you list all the Strengths, Weaknesses, Opportunities and Threats for your business.

Remember to keep referring back to your plan to see if there are small adjustments you need to make and to measure how far along you are in your plans.

What does it take to be an entrepreneur?

We are used to the idea of Dragon's Den, but not every business needs to be a completely new invention. Many people make a decent living with routine businesses that are similar to their competitors. If you are planning to do something which others are already doing, then think about how you will create space for your products in the market. One way is to invest in an industry which is growing. Certain industries are shrinking during the economic downturn, so do your research and see whether your sector is still growing. Or, can you offer a local business which isn't already in your area?

It can take guts to be an entrepreneur. You may be a naturally optimistic person, but some caution will help you along the way. My number 1 piece of advice is to invest as little money as possible at the beginning. Invest your TIME and see how the business progresses before making a financial commitment. Of course in some sectors that just isn't possible, so if that is the case then don't skimp on your research. I have lost significant money by just believing that I have the power to make something work when it really couldn't. Keep your optimism and confidence, but back it up with research, figures and a sound strategy.

There are many obvious benefits to starting your own business, but you have to remember the down sides as well. You will always be the last to get paid. Money has to be allocated to paying the bills of the business, investing in stock etc, paying back loans before you can get a look in. If your business is successful you'll want to use any cash to make it grow bigger rather than taking money out to pay yourself. So, if it is a steady income you want then employment definitely has its upside!

But, if you can manage the risk then there could be great rewards as well. Working for yourself can provide a great sense of pride and achievement as well as the major reward of being there for your children.

For more advice and inspiration there are a few 'mumpreneur' sites out there which can give you guidance.

My children sitting on a box of stock!

What is a mumpreneur? Check out some of the links below:

http://www.mumpreneuruk.com/
http://www.mumpreneursnetworkingclub.co.uk/
http://www.netmums.com/back-to-work/working-for-yourself/useful-resources-for-mumpreneurs
http://www.mumsbusinessclub.com/
http://startups.co.uk/

The Idea

If you can bag a job which will let you work from home then all power to you. Some desk-based jobs can be negotiated so that one or more days of work a week are done from home, and some small businesses would like an employee who can work remotely. If you are work as a contractor, ie you do work for someone but you are not their employee, then you will need to register with HMRC. Check out our 'details' page to find the tax perks you are entitled to and the red tape you need to adhere to. You may be able to set yourself up as a contractor in the kind of job you had before having children and take on as much or as little work as you can manage. Have a think about whether the profession you were in would lend itself to working from home. Many Mums and increasingly Dads are finding that starting their own business is the best way to get set up with home-working. The advantages are numerous, but primarily the reason we do this is to supplement the family income with something that fits around the needs of our children. It all starts with an idea... You may already have an idea of what you would like to do for your business, in which case take a look at the 'Practical Details' and 'Tax & Compliance' in order to figure out how to go from the idea stage to the action stage. Or if you need inspiration then read on! Have a read through our 'Case Studies' to see what other people have done. Think of something you are interested in or passionate about. Do you make crafts which could be sold? Could you buy and sell goods online? Is there a service you can offer to the public, eg graphic design, marketing? Do you adore animals? Babies? Languages? Travel? Sit down with a friend over a large cup of coffee and have a brainstorm. Don't worry initially about having the full idea, just jot down all the different thoughts you have. Ask each other the following questions: what skills do we have? What assets do with have? Do we have any land available for use? (eg do you have a barn in your garden which could become a holiday let?) Is there are a gap in the market for a particular website? Can you do something which is already being done, but do it locally in your area or do it better than others? Once you have the beginnings of an idea then research your market. Google the themes you have come up with and see what is already out there. If others are doing something similar then that probably means it is a good idea! Find out if your sector is growing or shrinking. Our sector (maternity and baby clothes) is currently a growing market as we are in a baby boom. Renting houses is another sector with very high demand. If you do have obvious competitors then have a think about what you could do differently that would make your idea a success. Find out ways in which you can monetise your idea. Some are obvious: if you are planning to do dog-walking then you will charge your customers a set fee. But if you are planning to launch a new website then it is worth learning about the ways to earn revenue from that. Think about your start-up costs. It is VERY easy to find ways to spend money! Many people invest loads in getting a fancy website or getting a graphic designer to do a logo. Spend as close to £0 as you possibly can in the initial stages. It is extremely likely that your business will evolve and change once you get started so be as nimble and flexible as you possibly can be and don't spend any money!! This one is really hard, but you should try and be flexible with your idea. Often we think our idea is fab and we are going to push ahead with it no matter what. I have experienced that one and lost tens of thousands of pounds by taking out a loan and investing in a business which just wasn't the right thing. If anyone tried to caution me I just took it as an incentive to prove them wrong. If you can start small then you are able to make changes as you go along. Be brave! Entrepreneurs have always been noted for a positive can-do attitude and plenty of perseverance.

The Vision

Many people would love to be able to work for themselves or work from home. The idea of having flexible working, being around for the children and being your own boss is very attractive. But can this dream become a reality? In this blog we are offering ideas, examples, inspiration and guidance on setting up your own business and being self-employed.

Five years ago my husband and I took the decision to change our lives and work for ourselves. This was prompted by the arrival of our first child, and now with 3 little ones at home we are glad we made that decision. There have been highs and lows, successes and failures and you can read about our story and others in the 'Case Studies' section.

This blog is divided into different sections with a place for 'Ideas and Inspiration', real-life 'Case Studies', the all-important 'Practical Details' and also 'Tax & Compliance'.

Welcome

This blog is designed to give you ideas and inspiration about starting your own business and working from home.

As well as regular content and feature articles, this blog will keep you up to date with the latest news, ideas and information you need to know.

Self-employed parents is a one-stop shop for all things related to running your own business from how you get started to registering with HMRC and ensuring tax compliance.

We'd love to hear your comments and experiences and would like to feature as many case studies as possible so please do get in touch via the comments section.