| Useful
Ecommerce & Internet Business Advice
There is a great deal more to consider, when starting
an internet business, than just getting us to make you a web site. We
would like to help you as much as we can so we have tried to pull together
some information and useful links for you that we hope will help, just
remember you can always call us free or fill the call back form in and
we can call you if you prefer and we can advise you, and if we don't know
we will try and find out for you!!
Market Research & Business Plans
We know you want to get stuck in but have you done
a business plan? even if you are not starting a new business it is a good
idea to do a business plan as you are extending your business, quite often
into a market that you may lack experience in. Business Link have a very
good business
plan page. If you are a startup company click here
for some start up advice.
Online Banking
It can take up to a month to set up an internet
merchant account, if you are taking direct electronic payment into your
account, so it is worth considering setting this up at the beginning of
a project. You may consider other forms of payment such as paypal or worldpay
for details on these items please refer to our pricelist
which we will be happy to send to you.
Shipping of Goods
Again this is worth doing some investigations into
as it can be quite a competive business. Some of the main companies you
may wish to contact are.
FEDEX
DHL
UPS
ROYAL MAIL
PARCEL FORCE
TNT
BUISNESS POST
Ecommerce Legal Information
If you have spent a considerable amount of time and money developing a
good website it makes sense to ensure that it complies with relevant regulations.
There are two reasons for this:
a) its the law
b) your customers are more likely to buy
There are four items of regulation that are particularly relevant to UK
businesses trading online:
The Disability Discrimination Act 1995
The Data Protection Act 1998
The Consumer Protection (Distance Selling) Regulations 2000
The Electronic Commerce (EC Directive) Regulations 2002
To comply with the above is not too onerous, the regulations are generally
sensible and practical, you just need to read through the information
and apply it. There are some modest costs, but these are small in relation
to the likely scale of business, and the grief that could conceivably
follow non compliance. These regulations are described below in more detail.
The Disability Discrimination Act 1995
The Act provides that all businesses & organisations including
businesses & organisations that offer goods and services on the Web
already have a legal duty to make their sites accessible to disabled people.
But speak to us we make sure that the designs we make are compliant
The Data Protection Act 1998
If you collect information about people (employees, customers, visitors
etc), such as names, addresses, phone numbers etc then this applies to
you. Clearly this includes any business of any size.
Key points to note:
you must state what you do with the data (and stick to it)
>>you must register with the Information Commissioner, a government
official that oversees Data Protection
>>you should not export the data outside the EC without the subjects
permission
>>you must keep the data secure, reveal it and delete it if requested
by the subjects
These obligations are straightforward, mandatory and the cost of registration
is £35 per year.
For further information about the Data Protection Act and the role of
the Information Commissioner visit the website at Information
Commissioner.
The Consumer Protection (Distance Selling) Regulations 2000
If you sell online, by mail order or by telephone to consumers, then this
applies to your business. These regulations are not applicable to business
to business transactions.
Key points to note:
>>you should provide clear information about your offering before
purchase (no extras like tax and freight after the consumer has decided
to purchase). It is helpful to be very clear what your freight charges
are and whether prices include VAT to avoid doubt.
>>you should provide a written confirmation of order following purchase
>>there is a "cooling off" period of 7 working days for
most goods (exclusions could include perishable or digital goods). You
should inform the customers of their right to cancel (without charge,
other than return freight).
We recommend you read and act on the guidance notes published by the Department
of Trade and Industry, available in PDF format at: Distance Selling Guidance
Notes. (Use the link at bottom of this page if you need Adobe Acrobat
reader).
You can read the full text of the regulations on the HMSO website at:
Distance Selling Regulations.
The Electronic Commerce (EC Directive) Regulations 2002
Commonly referred to as the Ecommerce Directive. If your business operates
online using the web or your business communicates using email, this applies
to you. The Directive applies to both business to business (B2B) and business
to consumer (B2C) relationships.
Key points to note:
>>you should display the name of your business
>>we recommend you display your company registration number or proprietor's
name (as you would in letters)
>>you should show your geographic address (street number etc, not
just a PO box)
>>you should show your contact information such as phone number
and email address
>>you should show your VAT number if you are VAT registered
>>refer to trade or professional recognition schemes, with registration
number , if applicable
>>provide clear information on price, tax and delivery to buyers
>>show clear Terms and Conditions, and acknowledge orders
We recommend you read and act on the guidance notes published by the Department
of Trade and Industry, available in PDF format at: Ecommerce
Directive. (Use the link at bottom of this page if you need Adobe
Acrobat reader).
You can read the full text of the Directive on the
HMSO website at: Ecommerce
Directive.
Further Information
UK Online for business
- British Government gateway to information about online business
DTI - background
information about eCommunications from the Department of Trade and Industry
British Chambers of Commerce
- your local chamber can provide advice or connect you with people
that can help
Business Link - the Government
enterprise agency dispenses information and advice from a network of UK
offices
Start your own business
Financing
There are several ways to get financing.
Before you approach anyone, do you know how much you need? It all depends
on cash. Once you have done your cashflow forecast your financing requirements
will be how much your cash is negative at the largest amount PLUS the
repayment of your loan (ie: if your cashflow is £10,000 negative
you'll need this just to be at zero, but you'll need to pay the loan back
, so add that to it - loans are usually 3 years so add on 40% to cover
payments and interest).
OPTIONS
For loans over £3,500, you should approach your bank.
Approach them first with an outline of your business plan and roughly
how much you think you might need. TALK WITH THEM. Find out if they'll
loan under your circumstances and how much they will loan.
Find out what documentation they require then produce it.
Follow up your initial meeting with a robust business plan taking everything
your bank manager said at your first meeting.
DON'T TAKE NO FOR AN ANSWER
If they refused ask why. Is it your credit history, your business plan,
your ambitions or ? You can always ask for less - so start your business
slowly and build it up - that's how most businesses grow - small at first.
Premises
Usually you'll need some premises to work from. But cover off all these
points :
INSURANCE - You might need insurance for yourself (public liability),
your staff, your building and your customers - check what you need. Some
of these are by law - every industry has an official governing body -
search on Google and see what's required.
CONTRACTS - Don't sign a contract until it has been read by a solicitor.
NEVER SIGN WITHOUT THIS. Try to get a shorter contract as possible. You
don't want to end up with a 25 year lease you can never get out of - you
never know what might change
RATES/ UTILITIES - Contact everyone when you know a date for moving in.
Don't forget if you are using your home as a business you may incur business
rates and not domestic rates - contact your local council and find out.
HEALTH & SAFETY - Some industries require health and safety certificates
- again, contact your local governing body and find out what is required
- a lot are legally required and it's up to you to get everything in place.
Staff
All staff require a contract of employment so make sure you provide one.
They will generally cover working hours, rates of pay, holiday and sickness
entitlement, notice period, termination period, dismissal procedures,
staff grievance procedures - check everything out beforehand.
You'll need to decide what benefits to offer your staff. It could be
zero but that may not motivate them !. Things you could offer are:
Bonus/ incentive scheme
Pension scheme
Accident and sickness cover
Lunch vouchers
Discount at your company
Company registration
You have 3 ways to set up your company:
SOLE TRADER
PARTNERSHIP
LIMITED COMPANY
The main difference between trading as a limited company and trading
as a sole trader or partnership is that the directors of a limited company
are not personally liable for debts incurred by the company, except for
non-payment of National Insurance contributions, provided that they act
correctly and honestly. In the case of a sole trader, there is no divide
between ownership and the management of the business. However, company
directors have extra legal duties, which if not met may result in liability
for company debts or disqualification from acting as a director elsewhere.
There are also differences in the way in which limited companies and
sole traders or partnerships are run. A company can have an unlimited
number of members, shares may be transferred without the agreement of
all shareholders and the way that new capital is introduced is fixed by
company rules, as is the method of profit sharing. On the other hand,
a partnership has a limited number of members; no change can take place
unless all members agree; and any transfer of interest or assets can take
place only with the consent of all the partners. The way that capital
is introduced is also by arrangement with a partner or partners, as is
the method of profit sharing.
Limited companies pay corporation tax on their profits (directors are
taxed like company employees). Other differences include the extra set-up
costs for a limited company, and also the need to send company accounts
to the Inland Revenue and Companies House
For a limited company you're better off finding a good accountant and
let them file all the relevant forms for you or go to companies
house
Register your limited company
You'll need a company name from companies house when you start a limited
company. Company registration companies will complete all the initial
forms for you (directors, share allocation etc)
VAT
If the value of your taxable supplies in the past 12 months or less has
exceeded the current VAT registration threshold of £58,000, or the
value of your taxable supplies in the next 30 days alone is expected to
exceed this threshold. More information on the Customs
and excise VAT site - registration forms as well
National Insurance
If you have employees (or you are paying yourself) you'll need to pay
national insurance contributions for the employee and the employer. Full
information is on the Government's
national insurance website
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