Just Been Made Redundant....advice Required

[Onelly27]

Hi there,

Unfortunately I've just lost my job, I worked for a large company but never really enjoyed it and I have no desire to go back into that business. So I've enrolled with Blue Orchid who are giving me advice on setting up on my own. I'm very interested in setting up in Used Car Sales, although they're very helpful they haven't at this moment in time given me the specialised information I need. So I would appreciate any independent advice (positive or negative), tips, networking events that could help me.

I'm considering working from home, I've got 20 years experience in sales and I've bought and sold cars many times as a hobby and most importantly I enjoyed doing it.

Hope you can help

Onelly27

[Parts-King]

The goalposts move considerably from selling a few cars privately to selling cars for a living. Your responsibilities in terms of customer care and warranty need to be carefully thought out

The will be lots of business networking opportunities, get in touch with your local "Bestof" website or chamber of commerce

You will need to keep lots of records, be able to prepare and repair vehicles too, and you need to think about registering for VAT not too far down the line, do you have somebody who can look after the books?

Kingo

[Jan&tone]

Being made redundant is not nice - been there and didn't like it one bit so you have my sympathies.

Good luck in whatever you choose to do with your life....

[Onelly27]

Your responsibilities in terms of customer care and warranty need to be carefully thought out

You will need to keep lots of records, be able to prepare and repair vehicles too, and you need to think about registering for VAT not too far down the line, do you have somebody who can look after the books?

Kingo

Thanks for replying,

Hopefully the one to one support with a Blue Orchid Business Mentor will help me with the responsibilities. Keeping records, VAT and bookeeping hopefully will be covered under the HMRC course I've booked onto. My wife is self employed and she's got a really good accountant that I'll be using

As for preparing cars, I used to work at a valeting business when I was a lot younger. I've also got quite a bit of experience in doing all what's required to make a car stand out from the rest, from taking pictures to knowing how to treat customers face to face. My experience in sales should help me with customer service and complaints. Repairing vehicles is where I lack in experience, although changing brakes, oil and filter changes etc are not a problem. But I do have 3 car mechanics at hand that I know well and do an excellent job at a reasonable price. I'm also an easy guy to get on with and have no problem meeting up with a bunch of strangers at a networking event.

Please don't think I know it all, because I can assure you that I don't. I'll definitely be looking into the leads you've given me.

Thanks again

Onelly27

[Jamesbelfast]

The very first thing to do is draw up a realistic business plan and have it reviewed by someone who has a clear understanding of business in todays world. Fifty percent of new busuinesses fail within the first 6 months mainly due to cash flow problems or poor planning. Have you researched the market and found is there room for another car sales business in your area or can you do the job better and effectively steal others trade.

Good luck with your idea.

P.S. If you fail to plan then you are more likely to fail.

[Parts-King]

There maybe a new business enterprise department with your local council who can help you put together a business plan, as JamesBelfast says, most new businesses fail early on through lack of planning. You will need a trade premises to operate from, insurance and all the other up front expenses. Businesses dont neccessarily go bust for lack of profit, they go bust because they dont generate enough cashflow. Turning cash over quickly is a key factor in securing loans and deals with your bank and is your number one priority (or so my Financial Director keeps telling me)

Kingo

[Phoenix999]

....I'm considering working from home....

I'm sorry to read your bad news so I hope that you can remain positive

If you work from home please be aware that you might require planning permission to do so as it can be regarded as a material change of use of part of your property.

If you store cars on, sell them directly from or have regular visitors to your property then you most likely will require permission but I have to say that you are unlikely to be granted permission given that car related businesses and domestic homes do not sit well together.

If you would like some planning advice then please send a private message asking me any questions and I will try to help you out. Play things safe and work within the planning regulations as should you not do so it may lead to your Local Planning Authority commencing formal action which, in the worst case, could lead you to a criminal record should you not listen to what they advise.

Good luck

[+Steve]

business plan is a must.. a good one is great to show a bank manager when needed. Cash flow projection in that is important too.

Stick with it, work to a plan and stick to that plan. Alot of people give up too early.

Only thing that I would find tough is any repairs, that can chomp in to cashflow.

[balli hi]

Being made redundant is not nice - been there and didn't like it one bit so you have my sympathies.

Good luck in whatever you choose to do with your life....

ditto the above

Good luck with it all

[Onelly27]

Hi all,

Thanks for all the great advice, I'm in contact with Next Step and Blue Orchid over the next few days. Hopefully between these two organisations and all the help I've received from yourselves I'll be able to make some sensible decisions on what I'll be doing next.

Once again thanks

Onelly27