Setting up your own business, I need help?

October 25, 2005 2:08 AM

Setting up your own business, I need help?

I have setup my own business, its a Web Design company. Here is the link http://www.definitivelabs.com. I only used to use it for small jobs for extra money.

However I work full-time for another company and im getting a steady amound of work coming in for Definitive Labs. Im using Freelancers to do work that I obviously cannot do and its working out really well.

I really really want to start up Full-time on my own but as I have no savings and no guaranteed work. I was wondering if there are any schemes that can help a new business get off the ground. Should I think about looking for investment?

I was planning to setup full-time with Definitive Labs next year, but my boss has found my website and has grilled me for it. He is constantly asking me to bring the site down. So its only a matter of time until I need to leave, this puts pressure on me to start earlier.

If anyone could help me with information that would help. Thanks for reading.

posted by spooksie to computers & internet (11 comments total)

Does your contract with your current company prohibit you from consulting on the side?
posted by k8t at 3:03 AM on October 25, 2005

Spooksie, first of all, it's usually considered to be bad form to self-link inside MetaFilter postings of any sort. I realize you've only been around AskMe, even though you've been here for a while, but it's part of the site's etiquette.

I don't know about britain, but in the US, there is a Small Business Administration -- a governmental entity that's designed to help small businesses get off the ground and running. They offer counseling services, financing, accounting help, and other things that many first time or small business owners find... handy, to say the least.

You could also look into your local entrepreneur's forum, or something similar. Again, I'm stateside, so I'm not much help...
posted by SpecialK at 3:03 AM on October 25, 2005

Ask your local Jobcentre who they farm out the Business Start Up scheme to in your area. Contact them and ask them if they'd point you towards local information sources.

I think the best you're going to get are preferential-rate loans from The Prince's Trust, or... uh... there's an equivalent charity that hands out loans to people who don't meet the Prince's Trust's age requirements.

BTW, your boss is teh suck - at the place I'm currently working for virtually everyone has some kind of sideline, and the boss is pretty supportive of those projects as long as they don't clash. It might be more sensible to just find a better job.
posted by Leon at 3:12 AM on October 25, 2005

You do have a business plan written and bound, right? Because you're going to need one of those to get funding.
posted by recurve at 3:40 AM on October 25, 2005

k8t the contract didnt state that I couldnt do my own work in the sideline. So therefore its fine, he would of sacked me by now if he could. I currently work for an ISP that designs websites for their clients, it isnt a web agency like what Im doing on the site.

I just think there is a clash now, he sees me as competition.
posted by spooksie at 4:10 AM on October 25, 2005

the contract didnt state that I couldnt do my own work in the sideline. So therefore its fine

Well, that's a very black-and-white approach to the situation. It does sound like you're in competition with your current employer (they do web design, you do web design, "he sees me as competition").

Contracts aside, that's an unprofessional position to be in. Your previous employer can be a great source of work and networking contacts when you begin freelancing; I think you've shot yourself in the foot here. Honestly not trying to be snarky, this is a serious question: if you're going to do things like this, are you certain you're ready to go self-employed?
posted by Leon at 5:33 AM on October 25, 2005

Don't know much about doing the small business dance in Britain but there's likely plenty of literature out there. Go to the library and read it. All of it. Your biggest concern out the door won't be income, it'll be taxes. If you're going offshore or off-loading to freelancers thous could get very tricky. You'll likely need an accountant down the road. Once the finances and legal papers are in order, you can focus on the work.

Next, calculate the minimum annual income you can live on. You'll likely find that you'll be a lot poorer (in addition to working 18 hours a day) when you strike out on your own. You may need to prepare for this by moving to a smaller place and quitting some niceties (like having a life).

Also, tell your existing clients now that the business is expanding and looking for new customers so they need to get the work out. With consulting, breadth is often better than depth. The more customers you have, the better--even if the jobs for particular customers don't pay so well or are boring. Each customer is a business relationship that'll lead to more customers and money down the road.
posted by nixerman at 6:36 AM on October 25, 2005

Getting investment for a service company is almost impossible unless there's something really unusual or a patented process. Why would an investor hand you a bunch of money to pay your own salary to do something what - no offense - they could just start their own company do to and pay someone a salary and control all the profits?

Having pancaked hard on my own ventures I personally would suggest strongly you keep your day job as long as humanly possible. It's very hard to grow a business when your daily living expenses compete with growth spending.
posted by phearlez at 9:04 AM on October 25, 2005

It would certainly minimize problems with your current employer if you could reduce the potential overlap. Could you adopt a policy that you don't do work for clients who use the ISP that you work for? And/or that you only work for smaller clients (if, for example, your employer only provides services to larger clients.)

Another approach is to state, up front (on your website, and to potential clients), that if they have ever discussed obtaining web services from your employer (ISP), that you are not willing to offer them your services due to the potential conflict of interest.

And under no circumstances should you contact (about providing your services) someone that you meet at your employer's work site, or someone who you learn though your ISP work is looking for web services. THAT can get you fired even if your contract is silent about it.
posted by WestCoaster at 10:47 AM on October 25, 2005

E-mail me at the e-mail in my profile if you need more Flash freelancers to help you. I can send you my resume.
posted by banished at 1:50 PM on October 25, 2005

Business Link are the people you're meant to talk to. Don't bother, they're terrible. You need a good solicitor and a good accountant on board, everything else you can work out for yourself.

You won't get any funding; even a £500 overdraft will involve blood, tears and your firstborn when you're starting out. Have enough free cash to be able to cover 3-4 months of no income. Make sure that your bank account never drops below this figure. Cash flow, cash flow, cash flow. The three most important aspects of a new business.

Good luck.
posted by blag at 4:40 PM on October 27, 2005