Do I go self employed
Discussion
To give you the background picture:
Been at my current company for 2 years now, during which I've survived redundancies and a management buyout. We've still just about ticking along making software for quite a niche market. I get on with everyone well, especially the MD, and I know I'm a valued employee there. The problem I have is career progress. I'm very ambitious, and with the struggles over the last two years we haven't moved forward greatly, although things are getting steadily better.
The other problem is that we're a small company (less than 15 employees), whilst that means I do get a varied workload, it also means that there are people ahead of me for any opportunities that come the companies way (regardless of how well I'm working).
What I'd dearly love is to get into a company where I can learn from the best and be at the forefront of technologies coming out.
So I'm considering going self employed. I'm just about to start a big project with my current company (6 months, with a very strong possibility of that extending to 12 months at least), so I'm 80% certain I could get an almost full time contract straight away. However going self employed means I could be completely in charge of my own development, I could start concentrating on some of my own projects and branch out a little into some more freelance work, plus there are obvious tax benefits of going self employed.
I'm just wondering if anyone has any thoughts to add to the mix, or even if you have done something similar? I've been thinking about it for a while now and my mind goes one way and then another!
Been at my current company for 2 years now, during which I've survived redundancies and a management buyout. We've still just about ticking along making software for quite a niche market. I get on with everyone well, especially the MD, and I know I'm a valued employee there. The problem I have is career progress. I'm very ambitious, and with the struggles over the last two years we haven't moved forward greatly, although things are getting steadily better.
The other problem is that we're a small company (less than 15 employees), whilst that means I do get a varied workload, it also means that there are people ahead of me for any opportunities that come the companies way (regardless of how well I'm working).
What I'd dearly love is to get into a company where I can learn from the best and be at the forefront of technologies coming out.
So I'm considering going self employed. I'm just about to start a big project with my current company (6 months, with a very strong possibility of that extending to 12 months at least), so I'm 80% certain I could get an almost full time contract straight away. However going self employed means I could be completely in charge of my own development, I could start concentrating on some of my own projects and branch out a little into some more freelance work, plus there are obvious tax benefits of going self employed.
I'm just wondering if anyone has any thoughts to add to the mix, or even if you have done something similar? I've been thinking about it for a while now and my mind goes one way and then another!
From my experience, going self-employed does have significant advantages - tax being a massive one as you clearly identified...
A few questions I would be asking myself:
- Will I always have a steady stream of work/income by going it alone?
- Working in a niche market, does this limit my employers long-term?
- Is there a possibility I will burn bridges by going it alone and potentially working amongst competitors?
- If it doesn't work out, realistically could you find work easily?
Good luck whichever you choose, keep us updated.
A few questions I would be asking myself:
- Will I always have a steady stream of work/income by going it alone?
- Working in a niche market, does this limit my employers long-term?
- Is there a possibility I will burn bridges by going it alone and potentially working amongst competitors?
- If it doesn't work out, realistically could you find work easily?
Good luck whichever you choose, keep us updated.
Choosing to be salaried or self-employed is often based on one's appetite for risk (and thus potential for greater reward), although I concede that the gulf between the two is closing rapidly, even as I type this! The list of pros and cons for both are quite lengthy, so you'd have to draw up those lists and see which provides the better fit for your profile of risk, ambition, outlook etc. The good thing is that neither are a one shot, in that you can always revert if it doesn't work out. Additionally, you would need to research the market to identify what opportunities there are for consultancy roles in your field and how you would compete with all of the other consultants. Good luck!
As long as you meet all of the following conditions then you are self-employed and you will have no concerns:
Can they hire someone to do the work or engage helpers at their own expense?
Do they risk their own money?
Do they provide the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves?
Do they agree to do a job for a fixed price regardless of how long the job may take?
Can they decide what work to do, how and when to do the work and where to provide the services?
Do they regularly work for a number of different people?
Do they have to correct unsatisfactory work in their own time and at their own expense?
(HMRC, 2011)
Can they hire someone to do the work or engage helpers at their own expense?
Do they risk their own money?
Do they provide the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves?
Do they agree to do a job for a fixed price regardless of how long the job may take?
Can they decide what work to do, how and when to do the work and where to provide the services?
Do they regularly work for a number of different people?
Do they have to correct unsatisfactory work in their own time and at their own expense?
(HMRC, 2011)
Thanks for the replies, certainly food for thought.
To answer a few of the questions/points raised.
I'm lucky in that this project I'm about to start on Monday would/should seeing me going at least until the end of the year, if I was to become self employed. Plus there is, in all likelihood, the chance of it being extended another 6 months after that. Truth be told I could probably get work from my currently employer to keep the bills paid for a long time.
I don't think I'd be burning any bridges by going alone, though I know my MD wouldn't be too keen on it I'm sure he'd understand. Plus, we only have a few competitors in our market sector, probably a handful around the world, the chances of me doing any work for them is quite slim. Any other Independent Software Vendor wouldn't be considered a competitor, nor would any freelance/contract work I did (since I'm pretty much free to do that now).
As for finding work easily... I'd have to get myself out there, start getting more recommendations from current clients/friends. One thing I'm not so good at at the moment is networking and getting myself out there, but mainly because I work full time and quite simply, I don't have to.
I'm thinking I might remain employed by the company for the first part of this 6 month contract, that'll take me to the end of the year. In the meantime I can try and do a bit more of my own freelance work, build it up a bit, then see where I am for the start of next year? Maybe that's just me procrastinating, slightly afraid to take the first step...
To answer a few of the questions/points raised.
I'm lucky in that this project I'm about to start on Monday would/should seeing me going at least until the end of the year, if I was to become self employed. Plus there is, in all likelihood, the chance of it being extended another 6 months after that. Truth be told I could probably get work from my currently employer to keep the bills paid for a long time.
I don't think I'd be burning any bridges by going alone, though I know my MD wouldn't be too keen on it I'm sure he'd understand. Plus, we only have a few competitors in our market sector, probably a handful around the world, the chances of me doing any work for them is quite slim. Any other Independent Software Vendor wouldn't be considered a competitor, nor would any freelance/contract work I did (since I'm pretty much free to do that now).
As for finding work easily... I'd have to get myself out there, start getting more recommendations from current clients/friends. One thing I'm not so good at at the moment is networking and getting myself out there, but mainly because I work full time and quite simply, I don't have to.
I'm thinking I might remain employed by the company for the first part of this 6 month contract, that'll take me to the end of the year. In the meantime I can try and do a bit more of my own freelance work, build it up a bit, then see where I am for the start of next year? Maybe that's just me procrastinating, slightly afraid to take the first step...
There is a complete disconnect between this:
1. Your employer ceases to be your employer, they cease to have any interest in your continued development, they will promote everyone else's interests ahead of your's.
2. Your employer may just say good bye to you, your concept that they will continue to employ you on this project is wishful thinking, there is every chance they won't. To continue to employ you on a self employed basis opens a can of worms for them with HMRC they are more likely to just employ someone else.
3. You continued development becomes your own problem, you will need to do it and pay for it yourself.
It sounds to me like being self employed is the last thing you need right now, you sound like you are in the early stages of your career, you probably need to move on, find an employer who will help you build your skills and contacts then capitalise on those by going self employed later in your career.
jammy_basturd said:
...it also means that there are people ahead of me for any opportunities that come the companies way (regardless of how well I'm working).
What I'd dearly love is to get into a company where I can learn from the best and be at the forefront of technologies coming out.
and this:What I'd dearly love is to get into a company where I can learn from the best and be at the forefront of technologies coming out.
jammy_basturd said:
So I'm considering going self employed.
If you go self employed a number of things will happen:1. Your employer ceases to be your employer, they cease to have any interest in your continued development, they will promote everyone else's interests ahead of your's.
2. Your employer may just say good bye to you, your concept that they will continue to employ you on this project is wishful thinking, there is every chance they won't. To continue to employ you on a self employed basis opens a can of worms for them with HMRC they are more likely to just employ someone else.
3. You continued development becomes your own problem, you will need to do it and pay for it yourself.
It sounds to me like being self employed is the last thing you need right now, you sound like you are in the early stages of your career, you probably need to move on, find an employer who will help you build your skills and contacts then capitalise on those by going self employed later in your career.
I appreciate that sounded like a bit of a oxymoron! I don't have any problem with self developed, it's pretty much how I've learnt everything. The main problem I have at the moment is that this job requires a lot of us. Since it's technically a struggling fledgeling company we're all required to put in a lot of work to turn the company into a success. The downside of that is I rarely get much time in the evening to do what I want to do, learn about new stuff, or work on my own projects or freelance work. So going self employed would help to readdress that balance.
For the time being I'm going to stay with the company though, try and build up a few more contacts this year for work and see where I am at Christmas. Funnily enough my parents had some friends over last night and I may have some more work from one of their friends!
For the time being I'm going to stay with the company though, try and build up a few more contacts this year for work and see where I am at Christmas. Funnily enough my parents had some friends over last night and I may have some more work from one of their friends!
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