Re: FN-FORUM: Contracts and business plans

date posted 20th May 2007 14:48

From: "James Herrington" [EMAIL REMOVED]
> After my recent post for mentoring, i've had numerous offers of work etc.
> and i now feel like i am getting somewhere so i thought it would be a good
> idea to setup some of the administrative side of things.
>
> I have several questions...
>
> 1. What is the best way to approach this, as a freelancer or as a company.
> My dad already has his own company (first4quality - hes a quality
> consultant) and has said that it would be possible to work under this
> company name (maybe something like first4quality webdesign??)
> What would be the advantages and disadvantages to each approach?
>
> 2. Where can i download a simple contract? How do i need to protect
myself?
>
> 3. Is there any good cheap software for windows like Billings2.5 on Mac
for
> creating invoices etc? Also how would i deal with VAT as either a
freelancer
> or as a company?
>
> I'm sure there are many things i have missed off here that i need to
> consider so if you have any other information that you think is relevant
> please feel free to include that...

James,

In your particular case, because of your age and stage of study, I suggest
you visit both a local accountant and a local lawyer.

My reasons for saying this are many fold but centre around these things...

First, if you say to both the accountant and lawyer that you are starting
out due to results from this list, and would like some very cheap advice due
to your age, they may well give you advice for free on the basis they may
have a potential star and good future source of income. More than a bit of
altruism may be involved too. The accountant will almost certainly advise
about the excellent tax status you have. If he doesn't suggest keeping away
from company status instead favouring a trust for the next two years or so
or until university education completes I would be very surprised. The
solicitor should provide some template contracts if he is any good.

Second, ask the accountant for a direct introduction to a senior adviser at
a local business advice scheme - either one funded by the local Council or
one connected with the Princes Trust. Ask both the accountant and solicitor
for direct introductions to a local business club, where you can mix with
business people much older than yourself. They will almost certainly help
you, slowly but surely, indirectly and directly with business.

Don't go too fast - ask the accountant about VAT and taxation. He should
give you some welcome surprises.

Be organised with a simple business contract provided by the lawyer (tell
him you want it to be simple), a simple invoice format with terms, and a
simple letter template for sending to potential clients having expressed an
interest in your services. That should be all you need. Invoices can be
produced on a WP like Word and your timesheets and accounts in Excel to
start with. Better to let the accountant do the books every three months if
his charges are lo enough.

After you've done all that, I may be able to help with any missing documents
you need.

HTH...

Mike A.