MM PC Solutions
Member
- Reaction score
- 11
- Location
- Essex. UK
Have you created a Business plan?
Is the amount you want to charge an hour enough for you to live?
Have you created a Business plan yet?
People tend to think business plans are just for "Bank managers" & such but if you create yourself one, then you can see if your business or the amount you charge will be viable for you to "Survive".
How much will it cost to set up your company
Some things to consider:
Equipment costs:
Expense type costs:
You must understand that this is not the only cost to take into your calculations..
What about the costs of your usual living expenses. In the first few months of your business starting, getting on it's feet and being able to provide you with some income to pay the rent, council tax, food etc.
How much does it cost you to live your current lifestyle? Do you actually know?
If you live with someone else then you can "share" the household expenses (50%)
Personal Survival Budget
How much does this add up to over a full year? This is your total living costs.
..and how many months will it take for you to be able to take money/profits out of the business to fund this?
Depending on the type of business, it's location and the amount of promotion, it could take from 2 to 10 months or more. So the important thing is to have sufficient funds to cover this period as well as the start-up costs.
I am sure there are more things you could add to the equation (personal circumstances) but this basic business plan will not only tell you if x amount of £ an hour that you wish to charge is enough but even starting out on your own is the best thing for you and your family.
Oh! I nearly forgot! You will also need to put aside (depending on the Country you reside in) Tax and national insurance (or similar) from profit/wages earned.
I need to put aside 30% additional to my "Profit" for this purpose. So if I was charging £50 per hour, this now equates to £35 after the tax man has had his little bit!
Enjoy working for yourself!
Is the amount you want to charge an hour enough for you to live?
Have you created a Business plan yet?
People tend to think business plans are just for "Bank managers" & such but if you create yourself one, then you can see if your business or the amount you charge will be viable for you to "Survive".
How much will it cost to set up your company
Some things to consider:
Equipment costs:
- Computers
- Vehicle
- Desk/furniture
- Fittings/displays
- Specific machinery
- Tools
- Signage
- Stock
- Other
Expense type costs:
- Advertising
- Promotional/brochures
- Telephone
- Insurances
- Stationary
- Training
- Loan repayments
- Other
You must understand that this is not the only cost to take into your calculations..
What about the costs of your usual living expenses. In the first few months of your business starting, getting on it's feet and being able to provide you with some income to pay the rent, council tax, food etc.
How much does it cost you to live your current lifestyle? Do you actually know?
If you live with someone else then you can "share" the household expenses (50%)
Personal Survival Budget
- Rent/Mortgage
- Council Tax
- Electricity
- Gas/heating
- Water/sewerage
- Telephone landline
- Telephone - mobiles
- House/contents insurance
- TV Licence
- Car insurance
- Car tax
- Fuel for personal/family
- Car repairs/service/mot
- Groceries/food costs inc takeaways
- Other household costs - DIY/gardening etc
- Clothing (for family if needed)
- Entertainment, trips, holidays
- One-off costs - presents, Christmas extras etc
- Savings/pension
- Repaying debts/credit cards
- Other loans or long term HP
- Other subscriptions
- Other expenses
How much does this add up to over a full year? This is your total living costs.
..and how many months will it take for you to be able to take money/profits out of the business to fund this?
Depending on the type of business, it's location and the amount of promotion, it could take from 2 to 10 months or more. So the important thing is to have sufficient funds to cover this period as well as the start-up costs.
I am sure there are more things you could add to the equation (personal circumstances) but this basic business plan will not only tell you if x amount of £ an hour that you wish to charge is enough but even starting out on your own is the best thing for you and your family.
Oh! I nearly forgot! You will also need to put aside (depending on the Country you reside in) Tax and national insurance (or similar) from profit/wages earned.
I need to put aside 30% additional to my "Profit" for this purpose. So if I was charging £50 per hour, this now equates to £35 after the tax man has had his little bit!
Enjoy working for yourself!

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