To think it's impossible to come off benefits to start own business?

[HipHipHippoo]

I have been claiming income support for a couple of months after being made redundant from my job. I found another recently but now they've changed the original requirements to include one weekend day which I can't do as I'm a lone parent.

I really want to start my own business as a childrens party organiser. People always remark on my children's parties, and I've organised and hosted them for friends children too. I know it involves weekends too, but I could do it with my DC around. I just know I could make it a success.

I spoke to the advisor at the job centre about how I can survive while establishing my business, whether I can receive partial housing benefit while I'm not earning much at the beginning and so on. She pretty much told me it's not worth the effort

I have no support or savings and am really struggling to survive on benefits. I just don't understand how I can transfer to my own business and survive (without being fraudulent!) Has anyone else managed it and could possibly offer any advice? Or is the advisor right and it's just not possible?

Actually UC allows you 12 months to start up a new business where the minimum income floor doesn't apply.

With respect, I did my job for 10 years plus before I set up my own business and still it wasn't "certainly" viable! Nothing is. Especially something you've not charged money for previously. (That sounds like I'm a prostitute, I'm not!)
Take your plan to a bank or a business school and see their thoughts.

Yes, well, still doesn't work very well, Cat, if you don't have a serious cushion because your UC claim will be royally fucked up with your income fluctuating so much, it's a known pitfall.

You know what I would find mega helpful?
Someone I could hire props from. So, if I wanted to do a Harry potter themed party, I would want to hire 100 "floating candles", wands, a sorting hat, potion bottles, maybe a maruaders map, a nice drape showing a brick wall with a platform 9 & 3/4 sign, maybe a portrait of the fat lady.

If I were doing a Pokemon themed party then pokeballs and Pokemon, maybe some giant cut-outs of Pokemon, and anything else someone else can think Of!

If someone round me set up a business were I could just hire all that crap for my own kids' party then that would be amazing because when I had to make 100 floating candles I was ready to float myself!! (Little reference from the show The 100 there for those who don't get the joke).

If you can do all that stuff (really well) then you could hire the kits out and you wouldn't need to actually go to the parties. You'd just need to take your fee, plus a "deposit" to cover anything that goes missing. Then return the deposit when they return the complete kit.

Op, you remind me of my friend. She started a buisness making cakes (she is a mum of 3, all at school). She started making cakes for celebrations, cupcakes ect...but she was hardly breaking even. She then started doing cupcake parties for kids, where she comes with baked cupcakes to peoples houses/village halls etc...and then teaches the kids to decorate them. Each child gets a box of 4/6 each to take home. She has party packages. The child chooses a theme for the cakes (jungle/superhero/princess etc..
) . After the session she takes all waste and washing up away. You will need liability insurance, DSB check and hygine certificate but you could do a website/buisness cards made up and start with this op. She makes about £100 for a party of 6 kids, up to 10 kids its about £130. She akso makes up party bags (extra). Obviously good idea for mums because you can book them when you are free. I admire your drive op...you can get there, just build up slowly.

@TheInvestigator

These guys have amazing props, and do exactly what you suggested.

www.eventprophire.com/

{Take your plan to a bank or a business school and see their thoughts.}

Ask questions of friends, conduct 'market research', get figures and more figures for everything before you approach a bank or business school. Look at the realistic amount you can earn, not what you could earn on a good day at the height of the season (if appropriate). If you decided after 6 months or a year that it is going badly wrong, what could your options be? Hook up with others or sell assets you might have acquired.
Think of the old 'Dragons den' (the early few years as it is more of a 'show' now) and look at your plans in a strong light. Get friends to rip it to shreds, although hopefully you will have answers and numbers to reply to these.

I live in London in an area that has plenty of middle class parents who can pay what you are looking for. And I’ve been to many such parties. But I would say

• there is plenty of affluence around - do you have that locally?
• I doubt the entertainers do more than one party a day, also it is very draining
• no way would these sorts of parents tolerate you dragging 3 kids along (barring an on the day emergency and even then they wouldn’t like it)
• is there a sizeable market - in any school class once one child has had a particular entertainer, IME the other parents are unlikely to book as it has been “done”

I would focus your efforts on the baby to preschool market. If there are sufficient parents with decent disposable cash, baby music/signing/massage/dancing classes can do well. The key is to stack 3 or 4 in a row so you only have one hall hire but 3-4 classes of revenue, then repeat 3 days a week in different locations. I know someone close to me who has set this up and now has a couple of people working for her running other classes.

@IceRebel

They look great! I try to shop independent and local as much as possible though (because my business is independent) so if someone in my town started doing it, and it was very good quality, I would spend more to use them. But with no alternative, that's a good website to have. Thank You!

You could look into the New enterprise allowance: www.gov.uk/government/collections/new-enterprise-allowance-campaign

However I think you might need a bit of a rethink about how the business will work. You absolutely can’t take your kids with you.

I know someone who used to run a children’s party business but she did it on top of a normal job. It was a good top up for her but insufficient by itself.

1tisl that's what we were all trying to do and were told to shut up! Hence suggesting a professional opinion.
I'm sure there is an idea that will work. I'm not sure it's this one. But a few tweaks.
Doesn't solve the funding issue though. How to transition from benefits. You'll need financial support.

You would need loan, either from a bank, a family member or a Kickstarter campaign

I would really recommend www.popupbusinessschool.co.uk/
Its free and most of the coaches have been in similar positions. I know of a few small businesses grown out of it. But you have to be prepared to take on board advice.

I meant to add that notwithstanding my comments I think it is great that you are looking to find solutions to your position

Plenty of people manage to game the system by having non-viable hobby jobs (which often don't even exist or don't make any income at all) just to get the ''working'' tax credits, child tax credits and other associated benefits, no reason why you can't do the same.

I did the New Enterprise Allowance program and started my own business through the DWP. They provided me with a mentor, tax help, business plan advice, provided start up items such as a printer and office equipment.

I received on going NEA payments for 6 months and then 6 months of 1/2 payments. I could stop anytime and go back on benefits but quickly made more than I was receiving and was allowed to keep the money I earned in addition to the NEA payments.

I would ask about an appointment with a New Enter Allowance adviser and they will be able to go through your business ideas and
advise you on the steps to take.

no reason why you can't do the same.

Because UC doesn't support that long-term anymore.

Your idea is not viable though.

You have no childcare for the weekends and no one wants your kids at there party!

The first place to start is by being realistic.

Most businesses don’t start producing a living wage for the first three years or so. Everything in the beginning is startup costs. So advertising, website, business cards, etc etc and bearing in mind that it takes time to build a client base.

While you could b doing four parties a weekend, you need to have a reputation first and that takes time.

You need to write out a proper business plan with forecasts and projections etc before you even start thinking about coming off benefits.

Nothing at all wrong with aspiring to be off benefits and running your own business, but reality is that if it was that simple everyone would be doing it and they’re not. Also, the vast number of businesses fold in the first year, so it’s far better to have a job already and to start the business on the side and then quit the job once the business is earning a decent amount.

Bearing in mind that reputation is earned by the way in which you run your parties. So decent organisation will be a plus point for you. Bringing your children will be a negative and will earn you bad reviews. Reviews are still important and if people mark you down for things like you bringing your children and therefore being unprofessional you will fail to gain clients or the kind of reputation which is going to grow your business.

It’s simply not enough that friends have said you did an amazing job for them. They wern’t paying and they know your kids and your circumstances. The client off the street will not.

I don’t know if there’s any leeway with regards to earning while you’re on benefits but if not your best bet is to find a job and build your business around that. But if you have no childcare over weekends then it’s an automatic non starter.

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@HipHipHippoo Benefits are means tested and the DWP will want you to show them what your regular income is so that they can calculate what benenfits you are entitled to. IME you have to declare any income and benefits will stop until the DPW can assess your needs.

I am in a different situation to yours, I am already self employed and I had to claim housing benefit due to my relationship breakdown. They wanted to see my bank statements, tax returns and roof that my income was regular with no big fluctuations.

My friend recently told the job centre that she was considering taking a job which was paid on commission, she was advised not to as it was not a regular income and it would adversely effect her benefits.

Sorry I couldn't be more helpful

My question is how I transfer from benefits to being self employed and survive in the meantime.

Get a job until you are ready and able to become self employed.

I didn't come here for you all to rip my ideas to shreds too.

No-one is ripping them to shreds, we are simply pointing out that it is unprofessional and unacceptable to take your children with you to planning meetings and the actual events.

You do the same as anyone else then..

Take your business plan to banks etc to apply for suitable business start up loans.

If your plan is viable and practical, you will get somewhere. If it isn't you won't.

You are more likely to get somewhere though if you already have a job so I would do that first, as it means far fewer hoops to jump through tbh.

You didn't come on for a load of negativity, I know. It's tough but rewarding once you're making it. Phasing the funds is your challenge initially. You already know it won't happen overnight as that's why you asked.
Be prepared to tweak as you go along and try for local grants. And the bloody pop up business school is fab as I've said, twice!
Follow your dream of being self employed but be prepared to take advice and tweak as you go. Don't be disheartened, just realistic. Good luck.