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The mkiv Supra Owners Club

Business plan


tbourner

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Don't forget to consider depreciation on the vehicle, that should be part of your planning. If you are going to lose a few k on depreciation as you're already saying you want a new car every 2-3 years, why not dump the idea and cost out leasing? Is it really worth the hassle for another motor? If you were interested in a long term business then fair enough but sounds like a lot of hassle to get a percieved cheap car.

 

My neighbour spent about 2 years trying to get her instructor license, she did eventually.

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oh, he needs help :D

Hey!! My missus works in mental health and says I'm fine!! :D

 

One thing i thought of that you may have forgotton, is that if your customers book their driving test before 5pm, you need to be available for them to take their test in your car. that may cause a problem...

I'm 99% sure work would be OK with giving me a half day for it, especially since tests usually have at least a weeks notice!

 

Don't forget to consider depreciation on the vehicle, that should be part of your planning. If you are going to lose a few k on depreciation as you're already saying you want a new car every 2-3 years, why not dump the idea and cost out leasing?

hmmm, maybe, I'll look into it.

Is it really worth the hassle for another motor? If you were interested in a long term business then fair enough but sounds like a lot of hassle to get a percieved cheap car.

Well this started as looking for a part time job, then it became an excuse to test drive cars, now I think we're trying to see it as a way of affording a second car, but secretly I'm hoping to get lots of business from it and make some profit! If I could do more like 14 hours a week, mostly weekend stuff, and get around £200 profit a month I'd be happy!!

My neighbour spent about 2 years trying to get her instructor license, she did eventually.

I'm a good driver though. :p

 

What do you look like? Are you presentable, do you smell nice? All important and neglected factors in this. ;)

I'm lovely and smell like roses.

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Bourner mate, i seriously wouldnt considder this right now.

My dad was talking with the guy who taught me the other day as he only lives down the road. He left the industry a while ago but i think his wife still runs the business. (it was a local one not someone like RED BSM or the AA).

He says that so many people have decided to do it the customers are spread very thin. One of the guys he used to work with has seen a big drop in custom lately simply because of the current economic climate. When you add those 2 thing up people arnt making a lot of money...

 

People like Red are still advertising (Ironicly an ad for red just came up on tv!) simply because the training/qualification costs 2 or 5k or something! Thats where they make the money. The "30k a year" is bullshit aswell. Sure that might be possible for one or 2 people but highly unlikely.

The same way that "train for your IT qualification with us and you could be earning 45k" is total bulshit. I know plenty of people i went to uni with, who have degrees (very good ones) in computing i would consider borderline genious but they cant get a job or work in a call centre or some other field completely different. I left uni in 2004 and untill last year one of my friends who was much better than me was still working in burger king in the same town we studdied in :(

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Trev,

 

have you looked at New Shape ford Fiesta's?

 

1.6 TDCi for £9k with delivery miles..... and only £35 a YEAR tax....

 

:blink:

I've looked at a 57 Fiesta diesel, which is quite nice. If I'm going near £9k I'd probably opt for a Toyota IQ instead - still need to drive one though.

 

My advice is get advice from your local business-link or other business start up provider, for free.

I was also told this last night as well. I'll have to book an appointment.

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I've been told I can get away with not paying income tax for probably about 2 years, until I've had enough coming in to cover my initial outlay plus any spending relating to the business over the course of those 2 years(ish).

 

Which is nice.

 

Are you sure? You'll have to fill out a tax return, your tax free allowance will be used up on your main job. Consider total income, the number of jobs is irrelevent. I know cos I've just done my tax returns (well, the missus did). You'll be taxed at the normal rate on your 'extra' income. Also worth checking, you *may* need to pay NI both employee and employer. Your £200/month is dwindling fast!

 

You can prob offset road tax/petrol against incomce which will help. You may even want an accountant to sort it out, thats another £300 or you do it yourself - you'll struggle with two jobs though and time spent filing means no lessons...

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Not to go into too much detail, but if you start trading before April 09 you will be paying tax by next January and plus, if your income is above a certain rate you will also be making a payment on account for the following years accounts ( about half of your current tax and NI liability along with your first payment), and also first year carry over if applicable. This is all based on if you make a profit in the first year, which you plan to.

 

Also, I am not sure what your current income is, but remember that once you earn over circa £35k you will be paying 40% tax.

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Only on 25500 at the moment. The person who told me about not paying income tax until you've earnt what you've spent out to start up, was a financial advisor about 30 years ago - he said he wasn't sure how much things had changed!

I don't plan to make a profit in the first year, I doubt very much I'll have brought in more than the £11k odd I'm planning to spend to start with.

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Ref tax, you can claim back the tax that you spend on the business, this basically means you can earn more without paying tax on it

 

but your books need to be spot on

 

You mean VAT? I don't have to register with VAT until I'm earning a certain (large) amount though? So I'd be better off staying as I am so I don't have to charge the students VAT?

 

Income tax is different though isn't it? One doesn't relate to the other? Even if I do pay income tax I can keep it in a savings account until January and pay it then - so I earn some interest at least.

 

I'm going to talk to business link, and I know an accountant near me who I can arrange a chat with. I'll ask them more about the income tax thing.

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  • 5 months later...
What car are you considering?

 

Might be worth looking at something that's fashionable like a Fiat 500, that in itself might be enough to get people knocking on your door rather than going to people with generic learner cars. A lot of people would pick a company just because they have a cool car and if you are driving it every day with stickers on that's a bit of instant marketing that the bland competition won't get.

 

Pick your colour wisely too, get a car that your taget audience desire in a colour they would like.

 

Are BSM members?

 

http://news.bbc.co.uk/1/hi/business/8172233.stm

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