(Very) Small Business Start Up

[SwingsitlikeHogan]

My son wants to chuck his job and start up his own events management and promotions business - and is looking for advice from me...

He can prepare a business plan etc - and can go to the bank and seek help there; and I guess there is plenty of government advice and support to be had out there - maybe not much in the way of money...

But any suggestions where he (and I) should start.

 

[CheltenhamHacker]

Personally, my suggestion is that he shouldn't chuck his job until his new company needs him full time.

Has he got any experience? I would be surprised if the bank will loan anything without some kind of capital behind him, letter of guarantee from yourself maybe...

The other option is for you to loan him the money yourself, re-mortgaging or such like? Keeps the money "in the family" which may be easier in the long run if it doesn't work out...

 

[PhilTheFragger]

Speaking as a self Employed person and as an ex Bank Manager,
the first thing to know is his experience in this field, his contacts and who and what he has in the pipeline. because in that line of work networking is essential.

What is his current job? is it linked? if so can he poach customers or is there a gardening leave agreement in place.

What type of events, is he going to have to hire/buy equipment? marquees? lighting? drinks glasses, has he someone on board for food preparation, canapes? waiting staff.Cancellation insurance etc

No bank is going to lend to someone with just an idea, some sort of track record is essential, a fully costed business plan is fine, but it has to stand up, what happens if you dont get a booking for 2 or 3 weeks? and your casual staff go and find other work.

good luck to him, be interested to see how this pans out

 

[chrisd]

My mate and I saw our bank manager 25 years ago with a business plan, he might as well laughed out loud and said we had no chance although it was in the trade I had worked for 20 years + and we were only looking for a bank account and not borrow any money

We did set up, worked for 25 years and only made one very small loss in one year. We turned over up to £500,000 per year and re invested into more equipment and our premises. I only wish I could see that idiot to talk to just once more!!

 

[SwingsitlikeHogan]

Speaking as a self Employed person and as an ex Bank Manager,
the first thing to know is his experience in this field, his contacts and who and what he has in the pipeline. because in that line of work networking is essential.

What is his current job? is it linked? if so can he poach customers or is there a gardening leave agreement in place.

What type of events, is he going to have to hire/buy equipment? marquees? lighting? drinks glasses, has he someone on board for food preparation, canapes? waiting staff.Cancellation insurance etc

No bank is going to lend to someone with just an idea, some sort of track record is essential, a fully costed business plan is fine, but it has to stand up, what happens if you dont get a booking for 2 or 3 weeks? and your casual staff go and find other work.

good luck to him, be interested to see how this pans out

He has been managing metal bands and putting on metal music shows for about 4 years and has built an extensive network of contacts (bands and other promoters/event organisers) in the UK heavy metal music scene - he also has a good network across Europe; his own band has toured extensively in the UK and also toured on the continent. As a result he has a track record of putting on successful shows and actually making some money.

His issue is time. He could do a lot more and put on a lot more if he had time - and a little capital for up front costs. Though my understanding is that the up front costs are not great he does have to commit to paying the venue, hire of sound, lighting, promo material etc.

At first he'd be doing everything himself - moving from organising maybe two shows at any one time - to say half a dozen. linking up with other promoters to put on bigger shows and multiple day music festivals - he already puts on an all day metal festival in Sheffield.

So I think he knows what he is doing. His start up need is therefore probably not money - more advice. Though he'd possibly be looking for a small amount to support himself until money starts coming in.

His current job has nothing to do with what he wants to do - other than he does some level of negotiation with customers around their orders (he works for a big building supplies company as a sales coordinator and administrator)

 

[SwingsitlikeHogan]

Chances are very high that we'll lend him the money he needs to get going and have something to live on for a year. I can;t see a bank lending him money if that's just for him to live on.

If he does this and has no income (putting aside for the moment what we might lend him) would he qualify for any sort of financial support from the government? I guess he won't qualify for benefits of any sort - though I'm sure many who are doing what he wants to do (self-employed) somehow do manage to get something through some means. Housing allowance?