New business

xabi

Hi,

I am currently working as an IT contractor and would like a complete change of career. I was contemplating going into business on my own, maybe buying a shop somewhere or any established business or even franchising. My current company has about 30K in the bank, i was wondering if its possible to use this money to fund a new business? also, has anyone suggestions on where I should start looking for opportunities - im open to all suggestions.

X.

noel123ie

Hi there

Try

www.askaboutmoney.com best place i reckon

Noel

pclancy

Presume when you say your own company you mean its limited and you're a director? Think you'd be taxed heavily on just winding it up and "paying" yourself 30,000. Think there's laws on transfering money between companies as well (if you were to start a new one and transfer the cash).

Best speak to a realworld accountant/solicitor I would say.

DublinWriter

xabi wrote:

My current company has about 30K in the bank, i was wondering if its possible to use this money to fund a new business? also, has anyone suggestions on where I should start looking for opportunities - im open to all suggestions.

Firstly, when you float a limited company in this country, you have to specify the areas in which you'll do business.

If you operate outside your stated areas, you'll deemed to be trading 'ultra vires' and smacked down like a bitch if the CRO get their hands on you.

The thing to do would be to amend your intended area of business into your Ltd. companies articles of association. Contact the CRO about doing this. It's not expensive or impossible and will allow you use your 30K to fund your new venture(s).

Funnily enough, I'm probably in the same boat as you. Earn about 80% of income from consultancy and 20% from writing. I've had several lunchtime conversations with collegues about what you're suggesting and the conclusion always is "I bet there's taxi-drivers and shopkeepers who dream about getting into I.T.".

Be careful, those far-away hills are always very green.

AndyWarhol

DublinWriter wrote:

Firstly, when you float a limited company in this country, you have to specify the areas in which you'll do business.

If you operate outside your stated areas, you'll deemed to be trading 'ultra vires' and smacked down like a bitch if the CRO get their hands on you.

The thing to do would be to amend your intended area of business into your Ltd. companies articles of association. Contact the CRO about doing this. It's not expensive or impossible and will allow you use your 30K to fund your new venture(s).

Funnily enough, I'm probably in the same boat as you. Earn about 80% of income from consultancy and 20% from writing. I've had several lunchtime conversations with collegues about what you're suggesting and the conclusion always is "I bet there's taxi-drivers and shopkeepers who dream about getting into I.T.".

Be careful, those far-away hills are always very green.

Hi, could you tell me more about the 'ultra vires' trading?

I am going to set up a Ltd company in the next week or two whose primary function is electronic systems design and consultancy (I'm an engineer by profession). However, I also have just bought a taxi plate which I will use to get the cash-flow going for the first 12-18 months of trading. Also, I will be importing second-hand Toyota Avensis cars from England using my car trailer.

It's a real mish-mash, I know, but would I have to set up three seperate companies? This would be extremely prohibitive to me.

Cheers!

Andy

kluivert

Ideal method method to use the money in the company bank account is to set up your second business as a subsidary of the first and have all shares in the sub owned by the parent company and then the transfer of money is no problem.

There should be no need to amend Memos or Arc's to do this.

AndyWarhol

kluivert wrote:

Ideal method method to use the money in the company bank account is to set up your second business as a subsidary of the first and have all shares in the sub owned by the parent company and then the transfer of money is no problem.

There should be no need to amend Memos or Arc's to do this.

Thanks for that. So there's no way I could do the three activities above operating as just one company?

mkdon05

You can carry out the three activities no problem, once you outlay them in your memo's and articles. That way your company will not be acting outside of its scope(ultre vires).

DublinWriter

kluivert wrote:

Ideal method method to use the money in the company bank account is to set up your second business as a subsidary of the first and have all shares in the sub owned by the parent company and then the transfer of money is no problem.

There should be no need to amend Memos or Arc's to do this.

I disagree. You mention setting up a second business...by that do you mean a second limited company?

DublinWriter

mkdon05 wrote:

You can carry out the three activities no problem, once you outlay them in your memo's and articles. That way your company will not be acting outside of its scope(ultre vires).

Correct, as I originally mentioned. Don't go setting up more than one Ltd. company or it will be a complete headache.

Strokesfan

xabi wrote:

Hi,

I am currently working as an IT contractor and would like a complete change of career. I was contemplating going into business on my own, maybe buying a shop somewhere or any established business or even franchising. My current company has about 30K in the bank, i was wondering if its possible to use this money to fund a new business? also, has anyone suggestions on where I should start looking for opportunities - im open to all suggestions.

X.

I think O2 are giving franchising opportunities? Why don't you set up your own consultancy? Printing companies seem to do well? Sell something that you're passionate about?

Sonnenblumen

Strokesfan wrote:

Sell something that you're passionate about?

Never fails believe me! Ask anyone who does, and they'll tell you, it's like watching Money Growing on Trees. But money isn't what it's all about either, but it's the only stuff banks are into. The other great thing is, selling what you love isn't work - you'll only see this when you start doing it for yourself.

Light that fuse there!

democrates

Most people go into business to be masters of their own destiny, money is a usually just a means to securing that freedom and independance. I think you've got the right mindset for success, others of your level might turn their noses up at the taxi business, but you've nailed the cashflow priority and aren't snobby about tasks which are key to your overall strategy.

Definitely find something you enjoy doing, why waste years of your life on something you're just ok about when you can achieve something you can be really proud of, I mean something which gives you deep contentment. In the same way as you don't want to be a passenger in someone elses enterprise, don't be a passenger in the market, be an explorer, find a better way to solve problems, think of it as your lifes work. Only you can match what you see as a worthy area of endeavour to your capacities.

The golden pages can be useful for brainstorming, as can the eu tenders website: http://ted.europa.eu/ and also new patents: http://www.freepatentsonline.com/. If you can anticipate where demand is going you can position yourself to innovate. Anything around energy and pollution would light my led. Change = opportunity.

People often overestimate what they can achieve in a year but underestimate what they can achieve in ten. By all means start on something established to get going, in the beginning you're building capacity to deliver, but keep an eye to your long term strategy rather than just following the next opportunity that appears on the radar, select work to position yourself. There's my two cents for what it's worth...

PRman

Xavi, If you are setting up a limited company I would you suggest you contact a company called COMPANY BUREAU (www.companyformations.ie) they can give u all the info you need and get your limited company set up in less than a week. Good luck. Democrat, you speak d truth!!!