PRIME business club

John asks: My colleague and I were both made redundant last year, with 25 years experience as Engineering Recruitment Consultants in London. Over the years we have both either project-managed or hands-on built/extended residential property on at least six new builds/extension projects. We have now decided to establish a business based on this and enter the property refurbishment market full time.

We are both in our 50’s with substantial equity in our own properties but having problems raising money to purchase our first project.

Having been made redundant over 6 months ago, we are unable to show earnings, which is a requirement to draw on our equity. The banks will only lend if we come up with 40 per cent - which is not possible unless we can use the equity built up! 

Any ideas? We are considered extremely competent, professional and perfectionists but not to an extent that it would affect earning levels!

Robert replies:

It’s always difficult to win over lenders, even when it’s your own equity securing the loan. Have you considered moving to one of the growing number of ‘boutique banks’ such as Handelsbanken? They delegate decision making to branch manager level and so can work around the rules that are holding back your present lender.

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth

John replies:

Maybe friends or family who know you, like you and trust you will invest or lend you money using your property equity as collateral?

When raising finance your starting point should be a good and robust business plan.  Although it may seem tedious to provide, it will stand you in good stead when financiers are summing up your business prospects.  A good template and advice is available from www.businesslink.gov.uk. 

Your first port of call could be friends and family who would invest in a Limited Company under the Enterprise Investment Scheme (EIS). Shares can be sold to investors and 20 per cent of the investment can be claimed back against any tax liability for the tax year or previous tax year.  Therefore an investment of say £10,000 will only cost the investor £8000. Shares should be held for 3 years and if you wish you can include a buy-back option after 3 years.

If the shares lose value the loss can be set against any income and also any capital gain on another venture can be deferred if reinvested into an EIS.  You have 3 years to defer the gain. Dividends are payable in the usual way. This scheme can make it ideal for the smaller investor.

Another source of finance is the Business Angel who would purchase shares, share in any dividends and have the advantage of not charging any interest.  If you link up with a Business Angel you could be eligible to have the funds matched by the Government under the Enterprise Capital Funds Scheme.

Business Angels can often make a decision quickly without the need for complex assessments and bring valuable experience to the table. A disadvantage is that it can take months to find and track down the right investor.  Business Angels do invest individually but typically as part of a syndicate. 

You can find a BA by contacting the BBAA Association at www.bbaa.org.  The BBAA have 24 Business Angel Networks and 30 professional advisory businesses.

The government operates the Capital For Enterprise Fund providing long term capital for Companies who can demonstrate that they have exhausted borrowing capacity.  However, my experience is that the cost of providing this capital together with management fees makes it prohibitive.  There are also very stringent requirements with regard to financial provision to include extensive profit and loss and cash flow forecasting spreadsheets. 

It is always worth contacting your local Business Link to get advice and it is likely they will be aware of any local form of finance.

Lastly, I wonder if you have considered forming a partnership with an established property developer on the basis that you provide the expertise and he provides the start-up capital.

Kim asks:Stocks and Shares - is there any help with start up in this area e.g. advice, training, mentoring, please?

Robert replies:

In my experience, the most successful start-up businesses are those that add value to the life or experience of others. Most products and services can be said to do this in some way or the other.

Trading stocks and shares yourself is not a business. Trading for others is a business, but one that rightly is highly regulated. This is not the right forum to advise you on either.

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth

John replies:When first dipping your toes in the waters with stocks and shares it is helpful to join a local Investment Club who will advise you of what shares they feel are worthy of purchase. You will have the free advice of more experienced investors and a certain amount of mentoring. Members share magazines and literature, follow Company information and vote on Company shares to invest in. 

You might invest in a good book and I would recommend ‘Investing in Shares for Dummies’ - available from Amazon at £7.90.  You could employ the services of a Financial Advisor if you feel you don’t want to go it alone but if possible you should appoint someone recommended by a friend or colleague and preferably one whose advice is not commission linked.

John Lamb is the editor of Ability magazine, a campaigning publication for people who have difficulty using IT.

Tony asks:I have patented a compact exercise machine at considerable cost that has enormous commercial potential but I need someone with the finances and expertise to have it manufactured in bulk and take this machine to market to see its full potential.  I have a working prototype to demonstrate its worthiness to any interested party. I would be happy to chat over the phone but prefer to speak face-to-face and give a demo for impact purposes.

 Robert replies:

I have a friend who develops, manufactures and markets electromechanical products. He might well be interested in this. Email me further details on robert@robertashton.co.uk

 Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth

John replies:

When bringing a new product to market you firstly need to be clear about what its unique selling point is and whether you have the drive, time and energy to grow the business.  You need to assess what industry knowledge you and your management team have and that should encompass selling, marketing and financial acumen as well as knowledge about the product.  You need to plug any holes in the above before you even step over the threshold.  It is also advisable to have a business plan in place and a free template is available form www.businesslink.gov.uk.  When discussing your product with other Companies you need to have in place a good non-disclosure agreement.  As you have a firm patent in place I wonder if your best course would be to contact other Companies in the health and fitness sector.

 John Lamb is the editor of Ability magazine, a campaigning publication for people who have difficulty using IT.

Russell asks:I and some colleagues are in the process of starting a business. We are at the very early stages and would like to know what the expert views are on Partnerships (with limited liability) and Co-operatives. We all want the same from the company and we all want to have an equal input. Which option out there affords the most democratic way of doing business?

Whilst there is a lot of advice out there it would be great to have an expert’s view. For example perceptions - I often think of co-operatives as a little backwards. This is only based upon my experience of growing up in a rural area where co-operatives tended to struggle for money and therefore “relied” on others in bad times. So can a co-operative be seen as “today” enough?

Robert replies:

There are two issues here for you to consider:

1. leadership - as someone has to be the boss - even if elected to that role by equal partners in the venture
2. legal structure - and choosing the right one

Make sure you’re not failing to grasp the leadership nettle by choosing one of you to lead. Rotate leadership annually if you like, but someone needs to have the final say - however democratic the process

As for legal structures - LLP might well be the best bet but take advice from an accountant.

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth

Will replies:

Business is a game and all games have rules. Partnership or Co-op needs the same rules.

Things will go wrong and you will fall out!  Go through, at the start, what you are going to do when this happens.  I was in a partnership for 25+ years - believe me I know what I’m talking about.

 Will Kintish, Business networker, speaker and trainer, replies:

 
John replies:

Partnerships tend to be between small numbers of people and cooperatives often encompass larger numbers of generally local people with schemes tending to be more ‘community’ in nature.  Cooperatives therefore have the disadvantage that decision making is usually a longer process and there is more chance that there could be a conflict between member’s views. However there may be a larger pool from which to draw knowledge.  Whilst investors are less likely to withdraw finance at short notice there is also less incentive for investors to invest extra capital should the need arise.  Cooperatives also tend to limit the choice of external finance. There are however tax incentives, for example employee share schemes, although most small cooperatives would find these too expensive to run. 

Limited Liability Partnerships (LLP) can be registered simply at Companies House for a fee of £20. LLPs offer limited liability for partners to protect assets.  Therefore the main advantage is that the legal entity (the LLP), rather than individuals, is responsible for any debt that may arise.  With any partnership it is essential to have a Deed of Partnership as this will help to avoid any misunderstandings or disputes.  This would set out the amount of capital, how partners will share profits or losses and any salaries.  Also how much time each partner would devote to the business, who does what management task and which things would need a collective agreement. This agreement should also cover how any new partners can be appointed and what happens if a partner leaves or dies.   In short my own feeling is that a Limited Liability Partnership would tend to be a tighter framework from which to run the business.

John Lamb is the editor of Ability magazine, a campaigning publication for people who have difficulty using IT.

Jackson asks: I have researched a business idea and got an outline plan for a totally new business with no competition at all and with a mass of potential. However, to go forward I need full financial backing up to £120,000. As I was bankrupted last year due to personal reasons what do you think my chances of finding a investor or partner would be - and where would I go to find one? 

The plan would take six months to put into place and 90 per cent of the funds is for equipment, which if the business were to fail could be resold to recuperate money. 

Robert Ashton replies:  Let me be honest here. Few investors will support a business idea that has no competition - to them it will suggest there’s no demand. Secondly, they’ll expect you to make a significant personal financial commitment. If you’re bankrupt you can’t do that. Lastly, you say that the risk is minimised because the equipment would have a resale value if the business failed. Failure should not be an option.
 
My advice is to get someone in the marketplace already to hire you to develop the concept within their firm, with a bonus in place for you when you a) prove it works and b) are discharged from bankruptcy:

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth.

 

Steve Carroll replies:Finding a partner/investor should still be possible. Your business proposition will need, however, to be well-positioned and reflected in a robust business plan. This should cover the usual areas plus a comprehensive analysis of business risk and appropriate risk management strategies.  

It should also incorporate an investor exit strategy, and realistic forecast trading accounts and balance sheets for one, three and five years into the future.
 

 Steve Carroll is MD and Lead Consultant of his own company, CarrleyTM Business Consulting Ltd.Steve has worked in international, corporate and consumer banking, and spent ten years running business support initiatives in the public sector.

 
Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.
 

Mapangie50 asks:
Is there any advice and funding aimed specifically at women over 50 who want to become self employed? I will only receive contributions-based Job Seekers Allowance for another four weeks, and the Jobentre advises that they can’t give any advice apart from access to their job search programmes.

I trained in 2008 as a hypnotherapist and psychotherapist but I am finding it difficult to set up in business by myself

Dick Stroud replies:
To the best of my knowledge there is no funding aimed specifically at either women or men who are over 5o years old. There may be special grants available to assist with training but not to help fund your business. From what you have said it sounds like the only funding you will have is your final four weeks of Jobseekers Allowance, your savings and any income you can generate from other part-time work.

The question you have to answer is will this be sufficient to fund your business during its start-up phase? Will you have enough money to pay for the initial start-up costs and to fund you whilst you build a client base?

If the answer is no, then it would be best not to start your business at this time since you risk putting yourself into debt and the business failing because your run out of cast.

My advice would be to delay starting your business until you have a clear plan for how you will generate customers and you know you have the funds to get through the first six months of trading.

Ideally, it would be best to spend time working for somebody else who has a hypnotherapist and psychotherapist practice so that you get a real feel of what it is like working in this field. I do appreciate that this might be difficult.

I am sorry to sound negative but I have seen too many start-up businesses fail because of lack of sufficient funding. Good Luck!

Dick Stroud founded and expanded his own marketing consultancy company 20plus30, focusing on 50-Plus consumers. His latest book is The 50-Plus Market.

Robert Ashton replies:
A lot depends on how long you’ve been ‘put of work’ and why. You may qualify for support under one of the Government’s ‘getting people back to work schemes’. Places to ask: www.nfea.com find your local enterprise agency and ask them. PRIME of course can also help. Check out http://www.delni.gov.uk/index/finding-employment-finding-staff/fe-fs-help-to-find-employment/pathways.htm
 
Finally, remember that most of your work will come from recommendation - get out there networking in groups populated by people who best match your preferred client profile:
 
Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth.

PRIME adds:

These three organisations specialise in helping women get into business. They may have other relevant advice or know of other sources of funding.

Prowess Ltd     = www.prowess.org.uk
Women in Rural Enterprises   = www.wireuk.org
Everywomen     = www.everywoman.org

Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.

Janusz  asks:
I’m over 50 years old and a Polish citizen. Is it possible for me to start my own small records sale business and be self-employed in UK? How can I do that?

Robert Ashton replies:
First make sure you are coming to the UK for the right reasons. If your business idea won’t work at home, it probably won’t work here either. Do lots of research into the marketplace - find out how your business will meet unmet needs. Then find out about moving to the UK:

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth.

Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.

Gill from Wigan asks: Are there any tax incentives to run a business from home?

Emma Jones replies:
Hi Gill

There are many incentives to run a business from home! If you’re already doing so, you’ll be feeling the benefits of low overheads and no commute. But yes, on top of that and in answer to your question, there are some tax benefits too. The biggest one is related to the expenses you can claim when running your business from home. The simplest way to carry out the calculation is to add up the annual costs (as applicable) of:

• Gas / electric / solid fuel
• Council Tax
• Contents / buildings insurance
• Water rates

Next, simply count up the number of principal rooms in the house (kitchen, reception rooms, bedrooms, bathroom etc). If there are seven, and one is used for half business, half personal (eg spare bedroom / office) then half of one seventh of these expenses are allowed and can be claimed against your tax bill. You can also claim for the business element of telephone bills and business travel.

Other planning you can do, is issue a number of shares to your spouse or partner so they are able to receive part of a dividend paid for the year, and you can claim their personal allowance.  Also, did you know that paying your children to work in the business is a way to reduce tax? As long as your children are over 13 and perform appropriate tasks within the business for a sensible salary, there is nothing to stop you paying them for work done to reduce your business tax liability.

We have many features on this topic at www.enterprisenation.com so I hope you’ll visit to take a look. It would be well worth your time - and will cut your tax bill!

Emma Jones is founder of Enterprise Nation the home business website, and author of Spare Room Start Up - how to start a business from home.

John Lamb replies:

I have a home office and there are no tax incentives to encourage people to work from home; rather the opposite. Local authorities don’t want people carrying out businesses from residential properties that might disturb the neighbours or cost them lucrative business rates. However, you can claim a proportion of your home heating, lighting, maintenance and rent or mortgage against business expenses (your accountant will work that out for you).

John Lamb is the editor of Ability magazine, a campaigning publication for people who have difficulty using IT.

There are no special tax incentives of running a business from home. However, expenses incurred wholly and exclusively for the purposes of the business should be deductible in calculating the taxable profits of the business - either as revenue expenses (for example, heating, telephone, lighting) or under the capital allowances system (for example, in respect of computers, furniture and other qualifying plant and equipment). In many instances, the “wholly and exclusively” rule may not be satisfied and the local inspector may agree to an apportionment on a just and reasonable basis for the purposes of determining the amount of tax relief available.

One trap to be careful of is the restriction which could apply to the principal private residence exemption. The exemption is available under the capital gains tax regime in respect of gains arising from the disposal of a principal private residence - the gain normally is free of tax. However, if any part of the house is used exclusively for business purposes, then the capital gains tax exemption may be limited. So ensure that no space is used exclusively for the purposes of the business, and substantive private use is made of the space from which the business is run.

Vishvas Kanji is a Tax Consultant for Mishcon de Reya Solicitors. You can find out more about his services here.

Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.

Elizabeth from Doncaster asks:

I would love to start up my own little business in horticulture and/or gardening. Where can I get the best possible training?

Dick Stroud replies:

It is not clear if the training you require is about horticulture/gardening or how to establish a small business. I will give you some advice about the latter.

Firstly, there seems to be a great deal of advice available on the Web. From a few minutes searching I found a site that was packed with information called start a gardening business.

There looks to be an excellent book called : ‘Starting Your Own Gardening Business: An Insider Guide to setting yourself up as a professional gardener.’ This is available from Amazon for under £4.00.

I would suggest that you look at the resources available from your local Business Link. You can find these by going to www.businesslink.gov.uk and putting in your postcode. The national Business Link site contains lots of advice guides about all types of start-up business issues. Look at them here.

I am sure you will also find there will be courses run at your local colleges about starting a business. The man who does my gardening has more work that he can handle so there is undoubtedly a demand for gardening services!

Good luck.

Dick Stroud founded and expanded his own marketing consultancy company 20plus30, focusing on 50-Plus consumers. His latest book is The 50-Plus Market.

Robert Ashton replies:

Contact your local agricultural college and ask their advice. Also consider working part time for someone already in the business you’re planning and then learning from them.

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth.

Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.

Sue Jones from Leeds asks:

I am unemployed and receiving jobseekers allowance. I have so far spent approximately £3000 on my new business. I cannot go any further because I need funding to run my business for the first couple of months. How can I get a loan or help with funding with a not too good credit record? I have a business bank account set up ready and waiting.

Nicola Dickins replies:

The Government have launched a new website: www.realhelpnow.gov.uk/ where you can download the help available for businesses in your area. Take a look at the Real Help for Women section, on page 25. It details new incentives for women on jobseekers allowance who have set up their own business, and includes funding for the first few months.

Also have a look at www.capitalforenterprise.gov.uk/portfolio.html as you may be able to apply for equity against a loan from the Aspire Fund.

Have a look at www.businesslink.gov.uk/realhelp there is an Enterprise Finance Guarantee that can help you obtain a loan.

Nicola Dickins is the founder and Managing Director of Make it Happen Consultancy Ltd.

Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.

Rob Goddenough from Crawley asks:

I am a gutter cleaner. What is the best form of marketing with a low budget? I have thought about leaflet distribution and local newspaper advertising. Are these the best methods to use?

 
Robert Tull replies:

There is an old saying that half of advertising money is wasted. The problem is identifying which half.

Most small businesses do not identify a separate marketing budget in their business plan, but it’s very useful to do so. As soon as you get a new business phone number, you will be contacted by numerous newspaper, magazines or directories trying to sell you into their next ad feature. Surprise surprise, you will be told that it’s ideal for your business, but hurry as space is scarce and the decision must be made now for that special deal.

It’s very easy to say yes to a persuasive salesperson and if you say yes too many times you will have spent your yearly budget in the first few months of your year.

So plan out a Marketing budget over a 12-month period as you need regular marketing of some kind every month, and it makes it easier to have a reason to say No to the next good offer on the phone.

Try different things until you find the ones that work best for you. Whatever media you use, you should try and monitor what works, so make a point of asking your customers or enquirers where they saw your name /advert /and why they contacted you.

The best marketing of all is word-of-mouth recommendation. Get into the habit (it’s not easy for some people) of asking your customers to recommend you to their friends and family.

If you are in a business-to-business service industry, leave leaflets or business cards with your existing customers. You never know when new possible customersmight need some emergency help.

So leaflets are a good idea. Putting them through letterboxes is also good as you are in control of which areas you are targeting. Some newsagents will allow them into their delivered papers at a small cost (cheaper than having inserts added by the publisher at source). The same newsagent also may also have a notice board for you to pin a leaflet or business card to at a small weekly rate.

Also consider joining a networking club or attending a business breakfast meeting - and give leaflets or business cards to all attendees. Many will allow you to talk about your business and promote your services, for a small fee, so practice a short speech in front of a mirror, so you gain confidence in delivering a 60-second advert for your business.

Contact other service industries in your local area and create a small circle of useful contacts who will promote your service to their customers. In return you will do likewise, so pick ones ou would be happy to recommend. Many homeowners are looking for reliable tradespeople to use when the unexpected happens.

Find out how much it costs to join The Chamber of Commerce in your area, or the Federation of Small Business. These are both ways of widening your contacts and finding out about events attend to promote your business. It will cost to join so weigh up the benefits before deciding whether joining is worth it.

Have a look at the Business Link website for more hints and tips for all areas of your business. Consider going on any free workshops that may be available in your area, to gain new skills and ideas - and make business contacts.

Finally visit your local bookshop or library and have a browse through the latest books on marketing and advertising. You will almost certainly find some simple tips and new ideas that are worth trying.

Robert Tull leads the team of Enterprise Awareness Managers at Business Link in the East of England,

Nicola Dickins replies:

Contact your local free paper (editorial dept) and tell them you’re a local business and you would like to write an article about your business. They are really interested in local business success stories at the moment. You may want to do a competition where you offer the winner free gutter cleaning.

John Lamb replies:

John Lamb is the editor of Ability magazine, a campaigning publication for people who have difficulty using IT.
Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.

Peter Melling from Liverpool asks:

I need training to trade as a locksmith. Where do I find a grant or funding for the training?

Dick Stroud, Author, managing director, lecturer  replies:

Trying to understand the Government’s training grants system is a non-trivial task!

There are multiple schemes in place and some of them may be applicable for helping with training to become a locksmith. This link provides an overview of the types of grants that are available.

Some of the banks provide guidance about the business practicalities of becoming a locksmith. Alliance and Leicester are typical of what is available.

My advice would be to contact your local Business Link and make an appointment to see one of their advisors. You can get the contact details of your nearest office from this link.

When you make contact make sure you stress that you want to talk with somebody with an understanding of personal training grants.

One further word of advice. There are a lot of companies advertising Locksmith training courses. Before deciding which training organisation to use, make sure you check them out and ask to speak to a couple of their recent students. Good luck.

Dick Stroud

Dick Stroud is a course director at the Chartered Institute of Marketing and a visiting lecturer at London Business School. His latest book is The 50-Plus Market.  

Robert Ashton, author, speaker and small business owner, replies:

Ask at your local Enterprise Agency. They’ll be able to point you in the right direction. Find them at www.nfea.com

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth.

Nicola Dickins, MD, trainer and consultant, relies:

Business Link have a fantastic tool for searching for funding for businesses within a geographical area. 

ELECT provide specialised services for new businesses in Liverpool. Give them a call on 0151 263 9554. They link in with training providers locally.

Nicola Dickins is the founder and Managing Director of Make it Happen Consultancy Ltd.

Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.

David Cadwallader from Suffolk asks:

I am thinking of a walking and activity holiday business mainly in France. How do I arrange insurance to protect myself and the business if things go wrong, e.g falls, third party claims, accidents etc?

Robert Ashton, author, speaker and small business owner, replies:

The short answer is to find an insurance broker and ask them to get quotes. The longer and probably more satisfactory answer is to look at websites for travel trade associations and find a specialist broker who deals in your kind of business. You might also find that joining a trade association gets you a discount on the insurance.

 Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth. He has written eight books including the best selling  The Entrepreneur’s Book of Checklists.  

Nicola Dickins, MD, trainer and consultant, relies:

Have a look at Hiscox, their business insurance services are really comprehensive. You can contact them for a quote on 0845 213 8900. Sounds like a great business.

Nicola Dickins is the founder and Managing Director of Make it Happen Consultancy Ltd.

Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.

Jessica from Beccles asks:

Where do I find a free list of what I can legally claim as expenses? I am especially interested in what I can carry over to future years when I will be making profits to claim them against. Somebody recently told me I can ‘loan’ myself a start up loan which can be carried forward, for instance.

Tax Consultant Vishvas Kanji replies:

If you are self-employed, all expenses you incur wholly and exclusively for the purposes of the business can be set-off against the income of the business for the purposes of calculating your taxable income arising from that business. Furthermore, generally the nature of the expense has to be “revenue” in nature and not “capital” in nature.

The distinction between the two in most cases is quite straightforward, but it can get complicated at the margins. An item of revenue expense is likely to recur and not result in an enduring benefit (for example, rent, electricity etc). Capital expenditure does not normally recur with the same regularity and provides a benefit which lasts for more than one year (normally quite a few years) (for example, the costs of buying a computer or furniture or equipment). Surplus of such expenses over income can be carried forward and set-off against the income of the following year.

Certain types of capital expenditure would qualify for capital allowances - in effect allowing you to set-off a percentage of the expenditure against your income for tax purposes. The extent of the deduction would depend on the nature of the expense and indeed the size of your business. Typically, an expense incurred in the purchase of plant and equipment qualifies for capital allowances (plant and equipment would include computers and furniture). Sometimes the whole of such expense can be set-off against your taxable income (in the same way as revenue expenditure). More usually, only a percentage can be so set-off each year (so the deduction is spread over a period of time). For example, if you spend £100 on a desk, and the expense, say, qualifies in your case for capital allowances at 25%, you would get a deduction of £25 for the year of purchase, leaving you with a tax written down value of £75. In the following year you will get an allowance of 25% of the tax written down value (i.e £75) … and so on indefinitely. Then if and when you replace the capital asset and you sell the old capital asset, the sale proceeds are treated as income, to the extent that they exceed the written down value of the asset in your books at that time.
A simplified set of rules applies to small businesses.
You cannot get any tax relief for any loan you make to yourself for the purposes of your business. If however, you were to borrow the money, the interest costs could be a deductible expense of the business (provided the relevant conditions were satisfied).

Vishvas Kanji is a Tax Consultant for Mishcon de Reya Solicitors. You can find out more about his services here.

Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

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Dave Parry from Hertfordshire asks:

Having Started a Business on the net, what is the best way to be seen? I would like to do this without spending money if possible, at least until the site starts to bring money in.

We have several answers to this question.

Emma Jones, Business woman, author and editor, replies: 

Thanks for the question. You haven’t mentioned the kind of business you run but there are certainly some things you can do to get noticed, regardless of the business you’re in.

Write articles - and syndicate them to sites that attract your customers. Articles will raise your profile as an expert in your field. For the host site it’s good, free content and for you it’s free promotion. Everyone wins!

Post in forums - make yourself known in the forums where your customers hang out. If you build a reputation as the person who offers helpful advice, people will immediately think of you when they’re ready to buy. There’s an accountant who responds freely to finance/accounting questions in our forum; his business has increased 40% in the past 6 months on the back of this.

Link to complimentary sites and have them link to you - inbound and outbound links will improve your Search Engine Optimisation (SEO) ie make it easier for people to find you when typing in terms in search engines. The more links, the higher you will appear in the search rankings.

Submit your site to search engines - another piece of SEO advice would be to submit your site to the major search engines, which you can do by clicking:

Submit your site to Google

Submit your site to Yahoo 

Submit your site to MSN 

Social networking - make the most of social networking sites to raise your profile. Key social sites/tools include Facebook, Linked In and Twitter. Used in the right way, these sites can quickly spread your name about the web.

The ideas offered here will cost nothing but your time. Test what works for you and find out the one that delivers the most valuable return on your time!

Emma Jones is Founder of Enterprise Nation and author of Spare Room Start Up - how to start a business from home.

 Dick Stroud, author, managing director, and lecturer replies:

Dave, I am afraid that this is something of a chicken and egg situation. Maybe the only way you will make money is to be seen and that could mean making an investment.

 To a great extent the approach you take will depend on your type of business. Here is a list of the basic things you must do and some others you might want to consider. I have to warn you that some of these ideas will require you acquiring some knowledge about the technicalities of how the Web works. You don’t have to be a ‘techy’ but it will require you understanding some of the Web fundamentals.

 Must dos

 1. Ensure all of the basics have been done to make your web site visible to Google. The starting place is the help section of Google

2. For a very small investment (a few pounds) you can experiment with Google Adwords. The tools in this section will enable you to understand the types of phrases that people are searching on when trying to locate the products or service you are selling.

3. Start contributing to blogs and forums where people who might purchase your products or services will also visit. Make sure you leave your web address with the message.

 Could do

1. Start a blog that relates to your business. This is an excellent way of increasing your Google footprint and its is free!

2. Start collecting e-mail addresses from the people that visit your web site and then publish an e-mail newsletter. This is great way of getting people to “refer a friend” and to increase the number of people who will visit the site.

Best regards,

Dick Stroud

Dick Stroud is Managing Director of marketing consultancy company 20plus30. His latest book is The 50-Plus Market.

  John Lamb, editor of Ability magazine, replies:

There are many free ways of letting people know you are there. The first is search engine optimisation (SEO): ensuring your site can be seen by search engines such as Google, and that it appears as far up search lists as possible.

To improve your chances of being picked up in searches, it is important to think about the key words and description of your site, that you submit to Google and other search engines.

The keywords should not only be as relevant as possible, but they should also appear as often as possible in the text that appears on your pages. Use a bit of lateral thinking here since you can include the names of other organisations, places and people.

Your designer should pay attention to how the site is set out; to enable search engines to easily identify relevant pages. The crawlers that flag up pages for searching inspect less than a fifth of the web.

The rest is a matter of marketing. I recently introduced a new web site for my magazine Ability, which is about IT for disabled people. My first step was to email everyone in my address books and social networks including Linked In, Facebook etc. I plan to do more of this by joining forums which I can use to tell people about what I am doing.

Visit sites that should list your publication, and ask the web masters to include you. If you have a ‘useful links’ page on your website, you can offer them something in exchange.

Finally, Google analytics is a free service that lets you know how traffic to your site got there and where the visitors come from. Each morning I excitedly open up the report on yesterday’s activity to see how many visitors I got.

Happy hunting.

John Lamb is the editor of Ability magazine, a campaigning publication for people who have difficulty using IT.

Robert Ashton, author and small-business owner, replies:

Network, network network. Join online business communities such as Ecademy, set up a Facebook page if you’re not there already and then set up a Facebook group for your ‘customers’. Blog lots and with everything you do, include a hyperlink back to a relevant page on your website. Also set up ‘Google Alerts’ for key phrases linked to your area of business and post comments where you can on the pages this alerts you to. Success in business is always about activity. In this case it’s about online activity. Good luck!

 Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth. He has written eight books including the best selling  The Entrepreneur’s Book of Checklists.  

Will Kintish, Business networker, speaker and trainer, replies:

 Dave,

Go to events and become visible. Look at Business Scene for lots of networking events.

Will Kintish

 Will Kintish is the founder and Managing Director of Kintish; which delivers business and networking training. 

Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

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