A New Business Venture!

Aldaniti

Aldaniti

At the Start
Joined
Dec 21, 2005
Messages
2,360
Location
Wickford
Hi
I've never run my own business before but the idea appeals to me :) I'm not in it to make millions! a few hundred quid a year would be nice ;) anyhow after some fleeting thoughts over the last couple of years & some serious ones since being made redundant in June I've decided to "Go For It" as they say! I'm turning what was a hobby & a bit of fun into a small business, I won't go into too much about what the business is as I'm not sure if I'm going to fall foul of the T&C's etc but basicly it involves selling homemade gourmet dog biscuits/treats etc
I have no idea what I'm doing on the business side of things & any advice would be much appreciated ;)

I have bought various items (equipment & packaging) that I will need & I know to keep all the receipts etc, my partner is in the process of building me a website but I don't know how to go about hosting it! eg what to look for in a company etc?

So I'll hand it over to you ;)
 
hosting costs next to nothing, your better off paying a compny to do it. at work we pay a company to host it & it costs us approximately £15 for two years. presumably you want people to be able to purchase items through the website? if so your going to need a fairly advanced website.

also, theres the aspect of promoting the website so that it gets viewed by the right people.

who do you want to aimyour products at? to individuals, or look to sell into chain shops?
 
Can I suggest that you start by clearly understanding if there is a market, how do you reach it, what channels you propose to use, what are the logistics costs and how price elastic is it.

It sounds like a nicely differentiated product, but would ensure you have a market before you spend any more on non recoverable costs.
 
Also as you are planning on manufacturing an animal food product make sure you find out what all the relevant regulations are .
 
Sounds pretty good to me - you will have a huge demand at Christmas i reckon....


Good luck with it!!

If you need any testers, im sure my dog will be willing.....
 
:o May I just add WOW!!WOW!!! And hope its a dog-matic choice, on your part, and everything runs smooth! And you apply for a pat-ent and add any claws and even paws if you like........... :rolleyes:
 
Even for a small business I'd advise you to prepare a business plan which will include your budgetary projections for costs, income and cash flow.

Ardross's point is a very good one - you can be sure that there will be regulations.
 
And you need to be aware there are several other small businesses offering the same product, Helen - a search on the Net will reveal this BUT that's not to say you may not have a unique angle - maybe you could develop a dog biscuit which incorporates known 'calming' herbs (maybe Headstrong could elaborate on this, as a de Levy fan!) or a biscuit/treat for food-intolerant dogs?

The very best of luck - being you own boss certainly has its advantages.
 
Do you intend to bank roll the venture yourself Helen?
Where abouts do you live?

From the little you've divulged by way of aspirations etc it sounds more like a hobby than a business to be honest. You could be taking one hell of a risk therefore. You've already committed capital by the sound of it, which is dead money now until you can start production, and that's provided you can sell it. If you intend to manufacture, I'd be even more worried

You say you've got little experience and you're almost certainly going to need a lot of guidance I'd have thought, and words like "no idea what I'm doing" doesn't inspire confidence. To some extent, the part of the country in which you live will dictate what's available both by quality and quantity. You might benefit from a 'Business Angel', try and avoid venture capitalists as they tend to extract a hell of a lot, although I have to say on the sort of returns you're talking about, I should think they'll be avoiding you.

Most importantly of all, I'd reiterate what Brian says regarding the production of a business plan complete with cash flow forecasts and projections, as well as all the other facets that one incorporates etc

You might want to consider using B Plan. "If you put B Plan Business plans" into google you'll get a series of templates regarding how to write one, but perhaps of greater relevance, it will give you a clearer idea of how to focus your thinking, and the areas you'll need to address.

There's very little that I think we can say to you though regarding detail, as what you've asked essentially begs a 100 follow up questions. There's no end of people who go for it, and fail for a host of reasons, most common amongst them are lack of experience/ ability and cash flow.

If you don't want to say to much an open forum then PM me. I have some background in the area of micro start ups (as strictly speaking you don't sound like an sme) I wouldn't want to put myself up as a guru mind you :lol:

I'd rather be honest with you though, and from the limited info you've posted I'd be initially concerned, and if you haven't yet produced a business plan, even more so. Posting up encouragement etc is a laudible sentiment but if you aspire to only a make a few hundred your margins are so tight that you'll be operating in an environment that is precarious at best, or commercially unviable at worst. Sorry I can't be more encouraging at face value, but there's no point in being irresponsible in the name of politeness
 
I'm no expert in small business but Ardross is right, there are almost certainly regulations that must be followed here.

I work for Trading Standards but not in this section of the enforcement team, so can't directly advise, but your best bet is to call the Business Advice line of your local Trading Standards (most provide this service and can be found in the phone book under Local Authority).

Good luck.
 
I've just watched Dragons Den and it gives me the idea for a role play. Helen is the applicatnt and say she wants £1000 to help start up costs.

Brian
Ardross
Songsheet

are the Dragons. Would you invest, and what questions would you ask to help your decision?
 
You'll need to register for VAT, constitute legally (and thus pay) for a Companies House regsitration, and appoint a Secretary and Directors. If you intend to turn your house into a commercial unit, you might find you're in breach of its planning designation, or will require an ancillary use application, which will drag. In a worst case scenario, a change of use might be required if manfacturing assumes primary use. A B1, B2 B8 would wipe out at least half the value of your house, though in reality your neighbours would oppose the application and in all likelihood win.

Go and speak to your local Business Link or ring your RDA.

As regards your mock den AC. You're wicked and know it :lol:
 
Helen, some good advice above. Your county probably has a Small Business Bureau - we have one here in Sussex, called BusinessLink - which will provide you with a very helpful package of information on how to start up, the kind of information (mostly covered on here by our expert panel!) you'll need, and the offer of assistance (not usually financial) to help you plan your way effectively. Have a look in your phone book or ask your Council to put you in touch. The scenario they set can look very daunting, but there will be a number of questions you need to ask. In addition, Health & Safety regulations over animal foodstuff, where you'll make it, where you'll source the containers (bags/plastic/glass?) and so on. You may also find that your premises (home?) won't be adequate or perhaps even appropriate for all of the production, baking, storing, packing and distribution, and you may want to think of perhaps renting a shop premises with a small making-up area at the back if the product is successful.

Most business startups reckon on no real return on capital after the first year, because so much is one-off, a small profit on the second after clearing all running costs, and a better one after the third and so on.

Anyway, do check first to see what help with startup you may get from your local small business bureau.
 
Thanks everyone for all your replys ;) lots to mull over & far too many questions to answer tonight!

First of all I really only want to keep this a small home run "Hobby Business" I have done quite a bit of research into the gourmet treat world & I am targeting those people who want to buy treats with no rubbish in them ;) I have been preparing & baking treats for friends who's dogs have dodgy tummies etc & they have proved very popular, I intend to sell directly to the public via a website/local advertising & bake to order, the only capital I've spent is around £20 :lol: all the ingredients are human consumtion products not by products of any kind,

I will look more into the regulation side of things tomorrow but from what research I have done so far it appears that I am exempt from the new feed hygeine regs as I am producing food for pets rather than food for animals used for human or pet consumption the regulations do not apply,

I have already found a supplier of packaging & I just need to decide what size/weight bags to send out,

To be honest with you I'm more concerned about accounting side of things than anything else! I don't need any financial help as the day to day running costs are so little,

I hope I've made things a little clearer & I'm sorry that I was a bit vague on my first post :)

will sleep on it tonight & try to answer the other questions tomorrow

Many Thanks

Helen
 
Originally posted by Warbler@Aug 10 2006, 07:45 PM


Sorry I can't be more encouraging at face value, but there's no point in being irresponsible in the name of politeness
Click to expand...
No worries, I would rather find things out now than later!

I've just found out I do not need to be VAT registered, for the time being anyway! have to make 61k to get into that sort of stuff & thats one hell of a lot of dog biscuits!
 
:blink: Well I've just spent the morning reading 82 pages of the feedstuffs regulations :o
spoke to the EMHO & the planning department of the council & DEFRA :blink:

Unless I expand & convert one of my rooms into an area used purely for business planning department does not get involved, considering I live in a small two bedroomed bungalow this is unlikely ;)

EMHO Not interested in it either unless I start storing tons of ingredients in outbuildings which may attract vermin,

Trading standards were very helpful & told me how to label products etc again no restrictions by them

DEFRA, again very helpful & the reason why there are no regulations concerning what I'm doing is that I am dealing with a complimentary foodstuff rather than a complete food & I'm using human grade food rather than animal by products that a huge number of pet food companies do use

in a nutshell all very good news!
 
Originally posted by Aldaniti@Aug 11 2006, 12:04 PM

DEFRA, again very helpful & the reason why there are no regulations concerning what I'm doing is that I am dealing with a complimentary foodstuff rather than a complete food & I'm using human grade food rather than animal by products that a huge number of pet food companies do use

Click to expand...
Are you sure you were talking to DEFRA, Helen?

Helpful & DEFRA are not two words usually found in the same sentence in my experience!

By the way, remember it's 'complementary', not 'complimentary' - folk might get the wrong idea if you use the wrong one on your website!!
 
Yes I just realised that :lol:

I put the phone down on them last year :angry: when I was trying to find out more about the poultry register, talk about one hand not knowing what the other hands doing :blink: sold off a few birds to get below the 50 mark.
 
Back to the Dragons Den.

If you watched last night I need your help. I thought the lorry wash was a great investment but it's been troubling me all day.

The applicant said there was an income stream of £243K per month from a 26 unit franchise at a 70% utilisation. This is revenue of just under £3M PA. Say he was 50% optimistic - £2M.

He sold 40% of the business for £200K. Did anybody get any sense of the cost base or the need for captital outlay? I need to know the margin or ROCE because I have an increasing feeling that it was the biggest televised mugging in history.

Help!
 
Originally posted by an capall@Aug 11 2006, 11:13 PM
He sold 40% of the business for £200K. Did anybody get any sense of the cost base or the need for captital outlay? I need to know the margin or ROCE because I have an increasing feeling that it was the biggest televised mugging in history.
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No costs were discussed, were they? There will be the investment in machinery plus, though it wasn't mentioned, the host sites will be on a rental and my guess is that it will be income related.

The guy making the application appeared to be no mug, but I too would have jumped at the chance to buy 40% of his business for £200k. And don't forget, there was an offer of £200k for 35% but he wanted Theo Paphitis on board.

Doug Richards, the American who is an ex-Dragon, writes a column on the Dragons' Den website. This is what he has to say about that:

"Clearly he sees something of himself in Theo. And so he places his faith in Theo regardless of price and turns down two other equally credible investors.

What he doesn't do is actually ask the investors what they can do for him. And in not doing so he makes a choice based solely on emotion. Not as uncommon an event as it may appear. "

Peter Jones may be worth £180 million (Sunday Times rich list) but he was totally wrong in his off-hand rejection of the proposition.
 
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