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Side Line Motorcycle Accessories Business Start Up Advice

Discussion in 'Business Advice for Start-ups' started by Swinp22, Mar 22, 2014.

  1.  
    Swinp22

    Swinp22 Applicant

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    Hi All,

    I am currently looking into starting up a side line business (I work full time at present) selling motorcycle accessories. Business isn't one of my fortay’s but I'm a determined person and willing to learn!

    I have looked into where I am going to buy stock from and how I am going to sell the products but I've stumbled across a few other queries that I am hoping you guys can help me out with;

    A) Company Type - Which type of company (sole trader/ Ltd) would best suit a small company? I’m not looking to create a market leading company - just a company that I can run alongside my full time work and as I have a passion for motorbikes, selling accessories to raise extra money is an exciting prospect!

    B) I am currently living at home (I’m in the process of buying a house but as with these things it’s never a quick process!!) and part of the requirements when my parents bought the house was that they are not allowed to run business from the address. Are there any ways around this? Or will I more than likely have wait until I move into my new property to set the company up?

    C) Insurance - What type of liability insurance would I need for this type of business. This is a topic that worries me the most as people these days seem to sue for just about anything!! This is probably just me being over paranoid but what are secure measures you can put in place to prevent/ reduce this?

    D) General Business Costs - What are the main outgoings? I have things like web design/ advertising/ marketing sorted but what are the other monthly costs (roughly) of things like insurance, business bank accounts, etc?

    Hopefully I have given enough detail to get some useful responses?

    If anyone also has any additional advice for setting up a side line business and the processes I would very much like to hear from you!!

    Thanks

    Peter
     
  2.  
    Duncan

    Duncan Moderator Staff Member Premium Member

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    Peter - what value of annual sales do you expect to make in the first couple of years - £10k?, £50K?, £100K?

    It will give me a sense of scale which will affect how I answer your other questions.

    Also what is the range of value of the items you will be selling e.g. £1 to £500 per item?

    Cheers

    Duncan
     
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    Swinp22

    Swinp22 Applicant

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    Hi Duncan

    Approx £5k in first year £10k in second. Only a very rough estimate - I will of course be aiming to turn over as much as possible.

    Products will range from £5 - £400

    Thanks

    Pete
     
  4.  
    Duncan

    Duncan Moderator Staff Member Premium Member

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    Ok - so I'm assuming either 50 customers average spend £100 or 100 customers average spend £50.
     
  5.  
    Swinp22

    Swinp22 Applicant

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    I would say 100 customers average spend £50 - or 200 customers average £25 spend
     
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    Duncan

    Duncan Moderator Staff Member Premium Member

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    Based on the level of activity above;

    A) Company Type - Which type of company (sole trader/ Ltd) would best suit a small company? I’m not looking to create a market leading company - just a company that I can run alongside my full time work and as I have a passion for motorbikes, selling accessories to raise extra money is an exciting prospect!

    Sole Trader.

    B) I am currently living at home (I’m in the process of buying a house but as with these things it’s never a quick process!!) and part of the requirements when my parents bought the house was that they are not allowed to run business from the address. Are there any ways around this? Or will I more than likely have wait until I move into my new property to set the company up?

    If you can run it discretely from an indoor room it is no more than some people do on ebay so I wouldn't worry too much. However, if you are going to have bikers queuing down the street and stock spread out the front of the house maybe wait till you have your own place and again don't annoy the neighbours!


    C) Insurance - What type of liability insurance would I need for this type of business. This is a topic that worries me the most as people these days seem to sue for just about anything!! This is probably just me being over paranoid but what are secure measures you can put in place to prevent/ reduce this?

    Third Party Liability in case you kill a customer by dropping a helmet on their head! Maybe PI cover if you are going to be giving advice? Stock insurance if you are going to carry much stock.

    D) General Business Costs - What are the main outgoings? I have things like web design/ advertising/ marketing sorted but what are the other monthly costs (roughly) of things like insurance, business bank accounts, etc?

    Your time. Book Keeper unless you are doing it yourself. Insurance (you can get indications online - some advertise in banners on this site), Computer, thank you gifts to your parents, postage and packaging, banks give 2 years free banking.
     
  7.  
    Duncan

    Duncan Moderator Staff Member Premium Member

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    PS Good luck with it and enjoy the learning and all being well the profits after tax.
     
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    Swinp22

    Swinp22 Applicant

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    Thanks Duncan, much appreciated

    Pete
     

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