Setting up the Company

Government and Companies House pride themselves in making business more accessible and reducing red tape. I was going to take them at the word and set up a Limited Company on my own. From what I could see I needed to fill out a few simple forms and send them off with a fifty quid cheque and my liability would be limited.

I was keen to pass from the ranks of the talkers to those of the doers. I had advised about setting up charities, companies house and being a charity director so I felt that I had a little insider information. (Maybe this was another source of my cynicism for Business Link, had they, like me, merely read the Internet and a skimmed few books to prepare themselves for the role of adviser).

I sailed past first base, understanding the need and purpose for a Limited Company. I could also navigate my way around the Companies House site. I was further delighted when I came across eSources.co.uk that sent a three email tutorial on How to Set up a Limited Company, including a free document to help with write your Memorandum and Articles worth £24.99. I went to work to prepare my Articles, the Memorandum of Association and the all important forms 10 and 12.

The first delay was getting the right software to amend eSource's template documents. So I downloaded a free trial of Adobe Acrobat and squandered hours setting this up, then read endless clauses, sub clauses and exemptions. I cross referenced this with the hallowed 'Table A' that is so critical to company law (if you want to know more go to Companies House and search for it, reading it makes paint drying seem a dynamic spectator sport). Things were going swimmingly until one of the two key forms need to be signed by a notary or a solicitor...

I knew that I needed legal help, and it was just a matter of time until I started to shell out cash for my dream of professional* self sufficiency, so I took up Business Link's advise and tracked down a 'Lawyer for Business'. A bargain, I thought, a free half hour consultation. It was very simple finding one, I contacted the Law Society who sent a list of participants in my area. I did a search on the most local lawyers; only one seemed to focus on business (divorce is not on my mind and most of the lawyers on the list seemed to rank this as their preferred sport) so I booked an appointment with him.

To get the most out of the session I was going to get the documents signed and talk about other legal aspects of the business. This week has been a frazzle of terms and conditions. What would the business be doing? what did I need protection against? what do other similar companies put into their terms? (and why do they need to registered in Luxembourg)? I came up with twenty odd pages of document for the unfortunate lawyer to unpick.

If there is a theme to my journey into business it must be this: set aside everything that you think you know and prepare for it to cost more! The lawyer seemed a great guy, but he did ask impertinent questions. Had I read Table A? Yes - one up. Did I understand it? No - lip starts to wobble. Had I thought about half a dozen wise issues that these pro-forma documents would fail me on? No - over and out.

All I can say is that this free half hour consultation has cost me a fortune! I understand that if I want Mothers of Innovation to have a long term future I really need to get the legal footings solid. I walked out daunted and since have signed up to a course of action that will cost me over £800 but should set me on clear course to focus on the bits that I can really do well.


*I will start another blog when I renew focus on my other aim for real self sufficiency, but then again will a chicken poo generator power this computer?

Link in

Cynicism had clouded my judgement, but the last time I met someone from Business Link all I heard all about the iniquity of their sales targets and all that that the 'computer said no'. I really never found out what they were selling except that I am sure their experience would have taught me a great deal about folding and selling a t-shirt. However, all web roads seemed to lead to them and eventually I picked up the phone: five minutes later, all questions answers and I had a host of fact sheets (that I may read when I get desperate) and they have passed my first test.

The best thing they told me about was 'Lawyers for Business', the Law Society's scheme to offer free 1/2 hour consultations - more about that later.

Buoyed by this success, I logged onto the regional pages of Business Link. With the click of the 'Enter' the permanence of this move dawned on me, the clouds darkened and I had entered the layer of hell dedicated to those dealing with the government. Two minutes later the phone rang and it was a gleeful soul from Slough Business Link (yes, I do mean gleeful) and five minutes later I was signed up to meet one of his advisers... At least she passed her first test, she was not called Carol and I was meeting in the library, far away from any computers.

How many excuses can you think of for avoiding a meeting? The dog ate my house keys? I am scared of being swallowed by a Kafkaesque nightmare? Well, not a pin stripe or sneer in sight. I found a very breezy lady, with significant business experience sent me through a mental assault course; making me explain, justify and project future ideas about my business - while her brain leapfrogged through advice and anecdotes. Her style could have been discombobulating to the tidy minded, but it worked for me.

Two days later a typed report came through highlighting our discussion - and I sensed this is where the sales came in: there were random and inexplicable references to London 2012 littering the pages. I rejoiced in overcoming my prejudice and filed the report in the recycling. I can't wait for our next meeting (unless the dog really does it my house keys).