A lot of businesses start out as just ideas. People decide that, for one reason or another, they do not want to work for someone else or another company any longer.
The leap from this to setting up your own venture is only as long as you want it to be. But, being cautious and crossing every T and dotting every I is usually the best approach.
Simple I know, but what you need to do it sit back and think about the following. If you are in employment at the moment (lets say earning £17,500) per annum your company will need to earn at least £20,000 (with NI) to pay you. This needs to be net profit. So, for you to start in business on your own and hopefully earn at least the same salary, you need to generate nearly £400 profit per week.
This is on top of all your other business outgoings. When doing your sums, you will be looking for an idea of costs for a variety of items. One of these will be small business insurance. We get a lot of phone calls from people who are thinking of starting on their own looking for a bit of advice and rough costings.
We welcome these calls but we do need some accurate information in order to give a realistic estimation. One of the main questions is, how much will I be paying.
The difficulty with commercial insurance, is that we need to know the location, the type of business, an idea of the replacement cost of all contents and turnover/wage roll. If you have a business plan, this information will be easy to come by.
Once you have this to hand, we can then give you a better idea of premium.