Starting Up

What services should I advertise to start with?

What do you enjoy doing? Remember, you're your own boss now and can pick and choose the jobs you want to take on.  You may well find, as I did, that the work you start off doing isn't the same work you are doing once you get more fully established.  You should be continually learning, now I offer services I didn't even know existed three years ago. Look at the experience you have, the equipment you have and offer those services you can do efficiently and competently without having to invest in additional equipment.  

How much money do I need to set up a Virtual Assistant business?

Not as much as you think! It really depends on whether you are willing to start out on a part time basis whilst you are working your existing full time role, or whether you want to jump in and start full time straight away. I started out on a part time basis with absolutely no budget at all, in fact my hours and wages had been cut by my employer so I was behind before I started.  Make sure you don't waste money setting up on things you don't need.  This is very important in the early days, and examine the costs closely before you do buy anything to make sure you get the best bang for your buck.

How many hours should I work?

That is up to you, work out how many hours you need to work to make a living and then you choose when you will work them. Working as a Virtual Assistant you can work the hours you choose, be that part time, full time, daytime, nighttime or weekends. Just make sure you plan enough hours in to generate the income you need.

How much should I charge?

This very much depends on the type of service you are offering, if you are designing websites there is a lot more skill involved than in copy typing a document. What you need to do is work out what your overheads are remembering to include things like your software subscriptions, insurances, professional association memberships, contributions to your self assessment tax assessment and NI, income protection insurance, data protection registration and then the retained income you need to make. It's no good thinking you can make a living on a low hourly rate, when you take into account the expenses that you incur you would have to work an incredible amount of hours to take home a decent wage. There are several useful blog posts on the intelligentVA site for working out your charging.

Do I need to be a registered company or VAT registered?

No you don't. You should talk to your accountant about this as it is not suitable for everyone, there may be advantages or disadvantages so it’s an area where you should always take specialist advice.

Do I need a separate bank account?

Some people manage on their existing bank account but we would always recommend keeping your personal and business transactions separate, it makes your bookkeeping records much simpler.

What equipment do I need to set up?

Not as much as you think! Many of us have an office filled with equipment we have never used. Think carefully before you make any purchase, do you really need it? In the days of next day delivery from most suppliers is this something you can do without until you really do need it? Are you offering specialist services that require specialist equipment. Don't make the mistake of buying something just in case. You may never do a mailshot so will be tripping over that box of 1000 envelopes for months to come. • The best pc or laptop you can afford - as you are working virtually this is essential • Printer - look at an all in one to reduce space • A dedicated phone line - look at VoIP options to keep costs down • Licenced software - for all the programmes you will use, don't buy it unless you really need it • A professional email address and email signature • A dedicated work space where you can work undisturbed, desk and chair It's not as long a list as you thought is it, and most of it can be found in the home already.

Legal

In order to print out invoices do you need to be registered with HMRC for the purpose of Money Laundering Regulations?

Sadly yes, we contacted the HMRC about this one as it's one of those grey areas. Their response was as follows: “Our definition of an Accountancy Service Provider includes the recording of financial information and preparation of invoices would come under this description, and, if you are providing this service by way of business you would need to be registered as an ASP.” However, with the first year cost being £120, and subsequent years being £110 then look at this as a monthly cost instead, it breaks down into just £10 per month, and as long as you're working from just the single premises you can incorporate this into your rates quite easily. If you're looking for more clarification on the Money Laundering Regulations we have a useful webinar we ran last year with Accountant Steve Knowles, who also created a handy policy you can customise for your business.

I only type up receipts into a spreadsheet for my client. That isn't really bookkeeping so I don't need to register with Money Laundering bods at HMRC do I?

Apparently you do! There is more information on when you should register with HMRC for Money Laundering Regulations in our blog post: http://www.trainingforvas.com/vas-you-cant-bury-your-head-in-the-sand-over-money-laundering-regulations/

Do I need insurance?

If you are running your business properly the answer is yes, you should speak to your insurer about indemnity and liability insurance and also ensure that your office contents are covered, this may not be standard under your existing home insurance policy. Your insurer will look at your individual situation and the services you offer when deciding your premium.