**Read this as a blog post and get all the links mentioned**

If you’re setting up a products business, I suggest getting these 3 things in place right now.  

While perhaps not exciting, they’re definitely important.

  1. Taking out business insurance
  2. Figuring out what kind of banking you need
  3. Applying for an EORI

USEFUL RESOURCES

Listen to Episode 22 with Gemma Whates

Read: 10 things to do at the beginning of your product creation journey

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If I haven’t answered your question please do get in touch!

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Transcript
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Welcome to the Bring Your Product Ideas to Life podcast,

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practical advice and inspiration to help you create and sell

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your own physical products. Here is your host Vicki Weinberg.

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Hi, thank you so much for listening to this. This

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is the first solo episode I've recorded for a while.

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If you've been listening to any of the recent episodes

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you've seen, we've had some fantastic interviews. We had lots

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of guests that I wanted to get on it and

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share with you. And I'm actually also recording this episode

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the same week that you listen to it, which is

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quite rare. Actually, I'm recording this on the Tuesday and

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your going to get it on the Friday. And that's

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because I wanted to get the timing of this Episode

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right. So if your starting up a product's business, and

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I'm assuming that you, you, in the process of that

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or your, or at least thinking about that, if you're

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listening to this podcast, then hopefully you've already read or

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listened to you. My interview with Gemma Whates, which was

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a temp things to do, right again, when you're setting

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up your products business for success.

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So if you haven't looked at that already, that's Episode

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22 and I'll link to the podcast Episode and the

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blog paste in the show notes for this episode. So

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Gemma specializes in helping businesses to get a set up

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and grow and, and to have a lots of success.

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And she's got loads of experience here. So I actually

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realized after the call, as an episode of Gemma, that

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they were free of things that we didn't actually talk

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about that I think you do need to think about

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at the beginning of, you know, when your starting out

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with your business, not wanting to overwhelm you at all,

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but these are things that are quite quite specific to

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product based business is really, which is possibly why we

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hadn't talked about them already.

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They're probably not the most exciting things, but they're definitely

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important, as I say, not meaning to overwhelm you, which

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is why I've left this episode a couple of weeks

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after Gemma is. So if you ask for a following

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along in order, umm, you don't have to much in

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your plate and one guy and none of its really

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particularly time consuming, its just a case of making a

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couple of decisions, putting some things in place. So this

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is like the going to be a fairly quick episode

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to listen to and UBS, to go away and think

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about these beings or maybe even act on them straight

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away soon as you're not listening. So before we go

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ahead and I talked to you about the three things

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I'd like you to think about getting set up. I

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just wanted to mention that I am now offering now

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I have some availability with kids at school and stuff.

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I'm out mentioning some Power offering some Power hours. So

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these are a one off cools you can have with

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me to use as you like their page calls. And

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I am offering a discount for the next couple of

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months, at least because that, you know, as you know

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what I'm all about helping as many of you as

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I can. And so these are calls to use as

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you would like really in whichever way you felt I

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can help your most. So in some ways you might

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use the power of me is to ask, you know,

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the specific questions. There might be a lot of things

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that you want to know. And obviously the quickest way

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to get an answer is just to ask directly. You

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might want to share with me what things you've done

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today, or maybe your in the process of researching products,

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maybe your in the process of creating your product to

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sell, perhaps you're already selling.

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And you're wondering why you're not selling as many as

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you like if you know any scenario you have, you

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want to share with me, get my input advice, suggestions

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for next steps. We can do that. I can also

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offer feedback on Amazon and using Amazon seller central. I

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know that's a platform that you might be interested in

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selling on. And I know from my own experience, Amazon

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is not always the easiest place to get started on.

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And I think if anything, it's getting harder and I've

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got years of experience using Amazon seller central. And I'm

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really happy to have a call with you where we

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share screens. And I talk you to freeze and realtime

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training. I can recall it, these calls as well as

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you'd always have something it to come back to, I'm

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going to have a particularly good for training calls because

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unless you're implementing things right away, you know, it's easy

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to forget, isn't it?

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So I'm, you can have a call with me. You

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can ask me how is set up for a product

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listing. We can go through, we could do it together,

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live on the call, get everything set up nicely. And

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then you would have the video for you to come

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back to. So if you are interested in this, I

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will link through in the show notes to my Calendly

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page where you can book on this call, pay for

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the call will be in the diary and that, and

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then I'll be looking forward to speaking with you. So

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now let's get old, not with the main content. So

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the first thing I wanted to talk to you about

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is insurance. So I strongly recommend taking out insurance for

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your business as soon as you have stock to sell

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or perhaps stock on the way, if you're a source

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yeah. From overseas.

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So yeah, the insurance policies aren't expensive as you think

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they might be. And if nothing else they're give you

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peace of mind. Obviously I hope you'll never, you know,

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you'll never need to use them. So they were free

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types of enjoyments to think about for product based business.

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And you can get the more than one policy say

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there's public liability insurance, which covers first party, property damage

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and injury caused by you or your business. So this

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kind of insurance as useful, if you go out and

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about say to meetings or events, or if people come

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and see you, I know at the moment I'm a

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So let's be honest. We not going out and as

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far, as much as we wear and people probably out

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and come and see us as much as we were,

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but you know, the world is going to change hopefully,

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but its for example, I guess I'm talking about, if

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you run a physical store, if your attempt popups shop's

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fairs, markets, again, as things stand right now, maybe, or

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not doing these things, but perhaps that's something you want

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to do in the future.

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It's worth thinking about having this kind of insurance. So

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I don't know if you're running a fair and you've

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got a big stand set up and somebody trips over

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and hurts themselves. If you've got public liability insurance than

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someone can claim against, you can get into insurance. And

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even if you don't have any kind of physical presence

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and you never intend to you. So if you do,

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if you plan on purely selling online and you still

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do, you know, you still do have responsibilities, umm, that

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you need to be thinking about. So, and you're still

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liable for the things that you sell. You could still

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have, I dunno, some kind of accident and that wipes

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out your stock or your supply chain could still be

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effected.

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I know that yesterday in particular, lots of people have

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had their supply chains effective by the pandemic. Umm, so

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is still worth thinking about having insurance. There is something

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called online retailers insurance fund that helps protect you in

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your business if there's a claim against you. And that

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also helps for things like, you know, when the unforeseen

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happens and you're out of stock because your supplier can't

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deliver for example. And then there's something called Product liability

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insurance and that covers damaged people and property cause by

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the products that you sell and that you're liable for.

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Say, for example, if someone gets hurt as a direct

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result of using your product and then there's also stocks

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that they were afraid actually for a cause there's also

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stocks and property insurance.

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So that cost covers loss or damage if your stock

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and any equipment that you use. So for example, let's

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say you have a laptops running your business and that

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get stolen. Let's say you have some kind of equipment

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used to create your products and that gets stolen. Or

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if it gets damaged, I think it's really worth looking

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at having an insurance to cover all these different scenarios.

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I can only find two providers that offer protection that

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seemed suitable for online retail businesses and our link to

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both of those in the show notes and in the

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blog posts, obviously things might change on as in when

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they do I'll update those links as well. Both of

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the policies I like that also offered the option of

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adding additional insurance for your stocks.

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If your insurance is how it is in a warehouse

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somewhere or evening, you know, in your garbage or in

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your spare room and also employers liability. If you have

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any staff working directly for you and something probably worth

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mentioning is if you're planning on using Amazon FBA, Amazon.

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So that's fulfilled by Amazon where Amazon hold your stock

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in one of their own warehouses and they fulfill it

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on your behalf. So Amazon do state that they will

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reimburse you if any stock is missing or damaged. But

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in my experience, they, especially, if you have a large

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number of skews and you know, a large amount of

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stock, they do move your stock around. It does get

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damaged.

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You often do you get compensated for it, but not

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always. I've certainly had in the past a couple of

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units that have gone completely missing. And nobody seems though

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where they were in and you know, nothing ever turns

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up for, but nothing I've ever claimed to me, it's

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only ever been a few items, but having insurance still

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does seem sensible to me because if you had a

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big issue, for example, hundreds of items were damaged or

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went missing, then obviously you want to make sure that

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you've got some sort insurance, so you can claim against

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that and get compensated for it. So that's insurance, as

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I say, you need to look into what policy is

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going to be best for you. What kinds of policy

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you need to, what kind of cover?

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I would definitely recommend taking out some kind of insurance

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for your business. If not on day one, then definitely

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at some point down the line. So the second thing

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I think you need to think about, and we might

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have touched on this one, I spoke to Gemma is

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banking for your business because however you choose this set

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up your business. So when you decide to operate is

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a sole trader or if it's a limited company and

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you can go back to the interview of Gemma to

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find out more about the differences, you will need some

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kind of bank accounts. They are, you can send a

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mercy money. And I suggest it's probably worth thinking about

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what kind of bank and you might need at the

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outset. And obviously that can change. Say if you're running

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your businesses as a sole trader, it's fine to use

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your own bank account.

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That's actually what I did initially. Although I did find

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fairly early on that it was much easier to have

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a separate bank account for sort of business transactions and

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keep it separate from my personal account. So you can

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sit up a separate account if you wanted to see

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if you're setting up as a business. So your, you

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know, your actually registered in as a company with, as

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a limited company or to have a kind of entity,

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you we'll need a business bank account. And obviously you

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can get I'm a business bank account on the highest,

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most high street banks and online banks. So there's plenty

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of options out there. I'm not going to go into

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that because that's obviously something that you couldn't look out

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and find the bank that will best suit you.

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But the main reason I wanted to bring up the

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subject of bank and is I think one thing that's

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worth asking yourself now is we'll do you need to

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send a mercy foreign currency? And you might be thinking,

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well, why would I, so that's one of you sort

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of little scenarios. So if your sourcing your products overseas,

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you might well need to pay your supplier in the

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currency of that country. So if your sourcing in your

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life, for example, you'd be paying in your ways. And

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actually if you source your products from China, you will

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be quoted and possibly needed to pay in U S

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dollars. So that's something worth thinking about I'm the reason

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I say possibly needs pay in dollars is because if

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you're sourcing your products via Alibaba, which is a Chinese

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based sourcing site that I've mentioned before they do now

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give you the option to pay in pounds.

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So I've done this a few times and say far,

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it looks pretty good. The exchange rate is comparable and

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sometimes better than what I'd get used in transfer wise,

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which is the other bank I use foreign currencies. And

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I'll talk to you a bit of, a bit more

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about that in just moment or two. Yeah. So it

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actually works out cheaper for me at the moment to

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send money to, to my supplier via Alibaba impounds using,

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using, I still use TransferWise to do it than it

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does to send it in dollars, actually works out, not

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much cheaper, but a little bit and a passenger, I

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think every little bit counts. Another reason that you might

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want a bank account that can handle form and currency,

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it is if you're going to be selling globally or

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maybe just even in Your.

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But if you're based here in the UK like me,

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because you might be receiving money in different currencies. So

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if you are taking payments through PayPal or Stripe or

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your own website, you can obviously receive it in pounds.

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Or if you're listening to us and us obviously can

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receive it dollars or whatever currency works for you, if

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you are selling, buy on Amazon. So payments from the

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European marketplace is for like, for example, will be sent

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to you as your res I'm. If you sell it

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on amazon.com at payments, we'll be sent to you and

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dollars. If you sell it in the UK, all of

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a century in pounds and that's regardless of where you're

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based in the world. So you really do want to

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a bank account in my opinion, that can deal with

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multiple currencies.

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And because you've, you may well find yourself dealing with

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two or more say for this reason, I also use

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TransferWise, which is account. I mentioned earlier to manage my

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foreign currencies. So basically I have a UK account of

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them. This is all online to have a UK account

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or your bio account and a dollars account. And then

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I also have my main business bank account, which the

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UK high street bank, which I only use for the

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UK currency. So the majority of payments that I receive

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from Amazon or for PayPal, from payments at come by

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my website for a bit, for a product sales that

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I make most of my payments, do you come into

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my UK high street bank?

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However, my payments I received from Amazon for my European

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sales going to transfer wise and you can then move

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money between your different TransferWise accounts. Umm, so if I'm

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paying as a supplier, for example, I used to pay

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them in dollars and I would use my transfer of

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account by account for that I would just, you can

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weave in transfer wise, convert the Your boss into dollars,

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make the payment I needed to make. Now I, as

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I say, typically pay my supplier in pounds, but I

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still use TransferWise to do that simply because the fees

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are actually less than if I was paying them the

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same amount of money from a high street bank.

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Yeah. The fees are so low. So for me it

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makes much more sense. Even when I'm sending lbs, the

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fees are so much lower, that it makes much more

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sense to do that for transfer wise them from my

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sort of regular high street bank. So that's what I

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use that for is a free bank account. It's all

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in line for to easy to set up. There are

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other bank accounts that do similar things. You can have

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a look around for that. I used to use a

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different one, but I found TransferWise works a little bit

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better for me. And that's the one I'm easing now.

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But do you have a think about that? Because what

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I don't think you want is to, for Amazon, for

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example, say you're selling on Amazon and they're paying you

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in your Rose. If they're true, if they are paying

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that into a bank account, the only Sterling so only

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handles pounds Sterling, then they are going to transfer that

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for you.

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And you're probably not going to get a great rate.

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And then you also might get charged are definitely fees

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because they've had some convert that money for U. So

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if you believe you're going to be perceiving any money

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and anything other than you're back, you know, you're own

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carbon seed wherever you're based. I definitely think about getting

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a bank account that can handle that. Okay. I'm the

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third thing that I want you to think about is

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Applying for an EORI number if you need too. So

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this was a really big thing for me and something

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or other, I wish I'd known him in advance when

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I failed first got started, which is why I wanted

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to tell you about it now. Cause this is probably

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one of the single biggest mistakes I made. So Mineo

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RI is an economic operators, registration and identification number, which

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is a bit of a mouthful, probably why they call

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it EORI and it's needed to move goods between the

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UK and non there.

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You can't trays and not having one can cause you

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all kinds of problems and delays and it can incur

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extra costs. So something that happened to me a few

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years ago, apologies if you've heard this story before, it's

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my first shipment of my product. It left China had

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to the UK to ages to get here. And then

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when I eventually did get to UK costumes, it was

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held for ages because I didn't have a DOI number

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or so I hadn't declared it. And I had a

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call from customs basically saying, we've received something for you,

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but unless you get your paperwork in order, its, you

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know, it's not coming in and it took a little

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bit of time to sort out. It's basically, it's just,

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it's just a number kind of how many digits or

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the number is maybe a, like an eight digit number

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that you need to give to your shipping company.

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If you're Product, if your product is to produce outside,

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if the UK and you're shipping it to the UK.

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So it doesn't matter if your product is produced in

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China or your report anywhere else, it doesn't matter if

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it will be still within your house, in a warehouse

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or if it's going into an Amazon warehouse without any

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EORI it just won't get through customs. It's not getting

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here and you also need one. If your product is

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manufactured in the UK, but your plan to export it

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to other countries. So if you are planning on sending

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a shipment of your product's to a physical store in

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a different location, so let's say you're based in the

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UK and you are going to send some products to,

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or shop in Berlin to cell on your behalf, for

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example, or if your sending your products to your warehouse

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spaced in another country.

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So it's really easy to do. You apply online and

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I'll put the link in the show notes, it takes

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about five to 10 minutes to apply. It's completely free

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and it takes around a week to get you a

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hours until you can actually use it until it's activated.

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So my best advice to you is to apply to

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one for one, as soon as you know, you'll be

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needing one. So when you were at the stage where

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you're going to be arranging, you know, the final order,

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if your product's, if your product will be created outside

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the UK, that's the point whereby it is applied for

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it because typically it's going to take at least a

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week possibly much longer than that for your product's to

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get here. And that will give you plenty of time

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to have it.

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If you think you already have any EORI numbers, like

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say, let's say you've been selling products online for a

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while and you've been sourcing them elsewhere. Just double check

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that it starts to the GB. Because when I was

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research in this episode, I actually came across something on

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a government website that said that if your EORI are

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a number, doesn't start with a GB. It won't be

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to apply for you. So have a quick look. I've

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looked at mine. I definitely think is something worth, you

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know, the few minutes it takes to check. And if

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it doesn't, you can apply for a new one now,

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and that is it. So as I promised a fairly

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quick episode is a, hopefully nothing too taxing or too

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complicated.

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As I say, I think all of these are things

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that you can get set up fairly quickly. They were

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just going to take a bit of looking into and

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working out what's best for you as with everything I

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would say of than the L E O R I,

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which if you need one apply for it, if you're

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not sure you need one, still apply for it. But

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when it comes to banking and insurance, like with most

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beings, it's kind of better to do something and change

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it rather than spending ages, figuring it out. So when

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you're looking for insurance policies, for example, if you can

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find a policy that does everything you wanted to do,

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I'm even if your not sure what it's going to

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be the right one for you forever, if it's good

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for you right now, I would say, get it set

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up. And the same thing with banking, if you can

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find a bank that does what you want them to

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do, you go for it.

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You can always change further down the line. I've changed

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business banks, both of my high street won and my

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won for hunting for income and say in the four

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years that my business has been running for various reasons,

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you know, you can change things. The most important thing

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is to just get something set up now, so you

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can keep going. Yeah. And on that note, please do

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keep going because yeah, it's really important that you do.

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So I really hope you've enjoyed this episode and found

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it useful. I really hope that this a few things

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you can go away now and take a look at,

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as I say deliberately kept it short. So you've got

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a little bit of time to do that. I would

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love it. If you could leave me a review for

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this Episode if you've got some time I'm if not

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just a quick rating, If listen on Apple podcasts.

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You can just to just scroll down below this episode

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and they're you see a couple of stars and you

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can just give me a star rating. If you've only

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got a couple of seconds, that'd be really appreciated. So

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thank you so much. Just always, if you have any

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questions I'm, you can get in touch with me and

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I would love to help you out to have a

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fantastic day. And I was speak to you soon.