How did you become self employed and setup your own company?
Discussion
Hello all.
Lots of thoughts going through my head about my career at the moment. The idea of setting something up myself popped into my head, but I don't have a clue how to begin the process of doing this. I also need to evaluate whether or not I can make something of my own work and pay for the bills etc.
I thought I'd ask on here about how people have setup their own business. How did you get to the point of doing this and did your previous careers help, or did you do something completely new?
Thanks.
Lots of thoughts going through my head about my career at the moment. The idea of setting something up myself popped into my head, but I don't have a clue how to begin the process of doing this. I also need to evaluate whether or not I can make something of my own work and pay for the bills etc.
I thought I'd ask on here about how people have setup their own business. How did you get to the point of doing this and did your previous careers help, or did you do something completely new?
Thanks.
The process to set up a company is very simple - it takes only a few minutes; that said, what is it you're hoping to achieve? I did it to work as a contractor, but I went the whole hog and have an accountant, web site/mail etc so I could do more if needed. The government web portal is good enough to guide you through the process: https://www.gov.uk/starting-up-a-business/start-wi...
I turned a hobby into a part time small business. I just phoned the tax man, told them I would be a sole trader, and they send me the necessary self assessment forms each year. I also filled out a small earnings NI exemption form, as I pay NI via a part time employment.
I keep simple books for income and expenditure, supported by receipts and invoices. Completing my tax return takes a couple of hours max. No need for an accountant.
The hardest part was getting customers in the early days. Now, I just spend £37 a year to go in Yellow Pages and yell.com. Most of my work comes via word of mouth.
I've recently started taking in work via a local retail jewellers. I charge them my full "retail" rates. Same deal with a local antique shop.
It's reaching the point where I may be able to go full time in the near future, but I'm not sure I want to do that.
I guess I'm lucky that there aren't many people in my line of business. More are retiring than are learning the trade.
I keep simple books for income and expenditure, supported by receipts and invoices. Completing my tax return takes a couple of hours max. No need for an accountant.
The hardest part was getting customers in the early days. Now, I just spend £37 a year to go in Yellow Pages and yell.com. Most of my work comes via word of mouth.
I've recently started taking in work via a local retail jewellers. I charge them my full "retail" rates. Same deal with a local antique shop.
It's reaching the point where I may be able to go full time in the near future, but I'm not sure I want to do that.
I guess I'm lucky that there aren't many people in my line of business. More are retiring than are learning the trade.
The legal bits aren't hard.
The trick is to find something you enjoy doing and get people to pay you for doing it. One of my brothers runs his own IT business (he started this after having a go at procurement, then qualifying as a teacher, and then getting a job in IT helpdesk). Another switched from a career in security to opening a restaurant.
The trick is to find something you enjoy doing and get people to pay you for doing it. One of my brothers runs his own IT business (he started this after having a go at procurement, then qualifying as a teacher, and then getting a job in IT helpdesk). Another switched from a career in security to opening a restaurant.
I considered this when I was made redundant from a job, I was going to use the money to set myself up as a photographer. I couldnt make the figures stack up to earn a living from it, after having a few conversations with companies and possible clients of 'if I were to do this, would you be up for that'
In the end I went back into another job, like I said on one of your other threads though I started being more careful who I was working for and with, rather than taking a job for the money/title etc
At the time I was considering going self employed, it was from a 'no-one's going to do that to me again' angle, which was kind of true, if I was my own boss I wasnt going to make myself redundant. But I couldnt get the contracts in place to do the photography that would give me the amount of money I needed it to clear, it became fairly obvious 3 pages in to a bsiness plan that it wasnt sustainable.
As it happened, I'm now self employed again from a redundancy, but this one is consulting for 1 client in the main on a fixed term, with a couple of others now and again, and I can pick up more if I find the need to. I might go back to PAYE at some point, I might not - havent decided yet, but I wont be doing it on the 'I'll never work for another person' it'd be based on a match up of what I want, what they want, and whether there's a future in it
My advice - dont rush into it off the back of a w
ker boss. There are other companies out there
In the end I went back into another job, like I said on one of your other threads though I started being more careful who I was working for and with, rather than taking a job for the money/title etc
At the time I was considering going self employed, it was from a 'no-one's going to do that to me again' angle, which was kind of true, if I was my own boss I wasnt going to make myself redundant. But I couldnt get the contracts in place to do the photography that would give me the amount of money I needed it to clear, it became fairly obvious 3 pages in to a bsiness plan that it wasnt sustainable.
As it happened, I'm now self employed again from a redundancy, but this one is consulting for 1 client in the main on a fixed term, with a couple of others now and again, and I can pick up more if I find the need to. I might go back to PAYE at some point, I might not - havent decided yet, but I wont be doing it on the 'I'll never work for another person' it'd be based on a match up of what I want, what they want, and whether there's a future in it
My advice - dont rush into it off the back of a w
ker boss. There are other companies out there There is no quick easy way to start up a sustainable long term business, it takes a lot of commitment, long hours and a good bit of luck, ie right time right place.
Having said that, if you can do something you really like, or excel at it becomes a lot easier. You need to find a product or service that people want, but not necessarily a niche, just do it better than your competitors.
I set up my own Chauffeur business, but first of all I spent 18 months working self employed for a local firm to make sure it was for me, before I invested any money. During that time I built up contacts and people who wanted to use me when I finally went it alone.
I placed adverts in 4 local parish magazines which are a very cheap but very productive form of advertising and waited a couple of months for the phone to start ringing. After that it was all about service levels and word of mouth,and a good accountant.
Do the job properly, reliably and don't give your customers any reason to go elsewhere, be committed and enjoy it, and this will reflect in the level of service you provide.
I ran my business for 14 years, and for all bar the first two years when I was getting established, I always had too much work.
I had a small network of guys who I could trust, and gave them all my surplus work rather than having to turn customers away. Once you do that they will probably stay away.
Sold it last year to retire
Having said that, if you can do something you really like, or excel at it becomes a lot easier. You need to find a product or service that people want, but not necessarily a niche, just do it better than your competitors.
I set up my own Chauffeur business, but first of all I spent 18 months working self employed for a local firm to make sure it was for me, before I invested any money. During that time I built up contacts and people who wanted to use me when I finally went it alone.
I placed adverts in 4 local parish magazines which are a very cheap but very productive form of advertising and waited a couple of months for the phone to start ringing. After that it was all about service levels and word of mouth,and a good accountant.
Do the job properly, reliably and don't give your customers any reason to go elsewhere, be committed and enjoy it, and this will reflect in the level of service you provide.
I ran my business for 14 years, and for all bar the first two years when I was getting established, I always had too much work.
I had a small network of guys who I could trust, and gave them all my surplus work rather than having to turn customers away. Once you do that they will probably stay away.
Sold it last year to retire
I was made redundant December 2009 and had 6 months contributions based JSA. After that, there was a scheme that gave a grant (in my case £1000) to set up your own business. I had a mentor/supervisor that helped me with a business plan, there were various free lectures on tax, start-ups, website & app development, and networking opportunities. Would be a good idea to ask if there are similar schemes operational today.
I started my business restoring leather after a career selling IT, which became beyond treacherous after 2008 - IT was the first area of spend that companies culled, and I lost three jobs in six months. It was enough for me to question why I wanted to be in that game.
I'll give a few pointers from my experience.
It sounds obvious, but finding 'that gap' in the market is key to your chances of success. Maybe think of a service that you would of liked at some point, which you couldn't find?
IMO do not just box shift. Be it printers, clothes, white goods, furniture, toner etc etc there is always somebody bigger (or maybe stupider) who shall either buy cheaper or work on tighter margins. Nowadays people buying an item that just needs box shifting buy largely on price alone. It's a battle you'd struggle to win. IE build in a service, something that people will pay for your expertise.
Get your corporate ID spot on. I spent a few thousand £ developing this, and to this day (even though the company is only me) people often assume we're far bigger, or ask if we're a franchise.
You need to be very self motivated. It is all to easy to treat a quiet day as a TV/ internet/ slob about day (says he on an internet forum....) you need to treat such time as 'working hours' - reply to those emails, do that admin, chase quotes etc.
Get a good accountant - a good ones sole purpose should be to ensure that you pay as little to the tax man as legally possible, and hence they pay for themselves.
Make sure your business is recession proof. If a recession comes along and you are selling high end watches as an EG you're likely to go out of business. People always need plumbers, 'wrong fuel' technicians as a few EG's. Likewise a service which can save people money is always good, our business for EG restoring leather comes at a cost, but a lot cheaper (EG 75%) compared to the cost of replacement.
Know your competition, and know their prices.
Work out your threats in advance. By this could one supplier minus stock to sell you cripple you, have plan B's in place, EG another source to purchase from in this case.
Work out how to market your business. You can have the best business in the world, but you won't get far if you don't market it.
Register both .co.uk AND .com of your business name, I did the former but not the latter even though .com was available at the time, it isn't now. A silly error.
Treat your customers well, be on time, always return their calls or emails, and thank them for their custom. Always offer them a reward for a referral or repeat business, and try to get them to follow your Twitter and Facebook page.
If you can avoid it don't offer invoice terms, no fun spending half your day chasing payments.
Have a plan/ support to get you through the early months. You will probably find out that however good your business you will have a slower start than you anticipate, possibly turning over £hundreds not £thousands. Do you have savings or supportive parents for EG? You may be confident that the money shall come in, but your mortgage company won't care for that when you can't pay them.
I hope some of that helps, but first of all I'd buy this book, it's a great dummies/ beginners guide - http://www.ebay.co.uk/itm/Starting-Your-Own-Busine...
[/quote]
I'll give a few pointers from my experience.
It sounds obvious, but finding 'that gap' in the market is key to your chances of success. Maybe think of a service that you would of liked at some point, which you couldn't find?
IMO do not just box shift. Be it printers, clothes, white goods, furniture, toner etc etc there is always somebody bigger (or maybe stupider) who shall either buy cheaper or work on tighter margins. Nowadays people buying an item that just needs box shifting buy largely on price alone. It's a battle you'd struggle to win. IE build in a service, something that people will pay for your expertise.
Get your corporate ID spot on. I spent a few thousand £ developing this, and to this day (even though the company is only me) people often assume we're far bigger, or ask if we're a franchise.
You need to be very self motivated. It is all to easy to treat a quiet day as a TV/ internet/ slob about day (says he on an internet forum....) you need to treat such time as 'working hours' - reply to those emails, do that admin, chase quotes etc.
Get a good accountant - a good ones sole purpose should be to ensure that you pay as little to the tax man as legally possible, and hence they pay for themselves.
Make sure your business is recession proof. If a recession comes along and you are selling high end watches as an EG you're likely to go out of business. People always need plumbers, 'wrong fuel' technicians as a few EG's. Likewise a service which can save people money is always good, our business for EG restoring leather comes at a cost, but a lot cheaper (EG 75%) compared to the cost of replacement.
Know your competition, and know their prices.
Work out your threats in advance. By this could one supplier minus stock to sell you cripple you, have plan B's in place, EG another source to purchase from in this case.
Work out how to market your business. You can have the best business in the world, but you won't get far if you don't market it.
Register both .co.uk AND .com of your business name, I did the former but not the latter even though .com was available at the time, it isn't now. A silly error.
Treat your customers well, be on time, always return their calls or emails, and thank them for their custom. Always offer them a reward for a referral or repeat business, and try to get them to follow your Twitter and Facebook page.
If you can avoid it don't offer invoice terms, no fun spending half your day chasing payments.
Have a plan/ support to get you through the early months. You will probably find out that however good your business you will have a slower start than you anticipate, possibly turning over £hundreds not £thousands. Do you have savings or supportive parents for EG? You may be confident that the money shall come in, but your mortgage company won't care for that when you can't pay them.
I hope some of that helps, but first of all I'd buy this book, it's a great dummies/ beginners guide - http://www.ebay.co.uk/itm/Starting-Your-Own-Busine...
Edited by Fermit The Krog on Thursday 3rd March 14:05
[/quote]
Edited by Fermit The Krog on Thursday 3rd March 14:34
andy-xr said:
I considered this when I was made redundant from a job, I was going to use the money to set myself up as a photographer. I couldnt make the figures stack up to earn a living from it, after having a few conversations with companies and possible clients of 'if I were to do this, would you be up for that'
In the end I went back into another job, like I said on one of your other threads though I started being more careful who I was working for and with, rather than taking a job for the money/title etc
At the time I was considering going self employed, it was from a 'no-one's going to do that to me again' angle, which was kind of true, if I was my own boss I wasnt going to make myself redundant. But I couldnt get the contracts in place to do the photography that would give me the amount of money I needed it to clear, it became fairly obvious 3 pages in to a bsiness plan that it wasnt sustainable.
As it happened, I'm now self employed again from a redundancy, but this one is consulting for 1 client in the main on a fixed term, with a couple of others now and again, and I can pick up more if I find the need to. I might go back to PAYE at some point, I might not - havent decided yet, but I wont be doing it on the 'I'll never work for another person' it'd be based on a match up of what I want, what they want, and whether there's a future in it
My advice - dont rush into it off the back of a wker boss. There are other companies out there
No worries. Thanks for the advice. I'm not rushing into anything. In the end I went back into another job, like I said on one of your other threads though I started being more careful who I was working for and with, rather than taking a job for the money/title etc
At the time I was considering going self employed, it was from a 'no-one's going to do that to me again' angle, which was kind of true, if I was my own boss I wasnt going to make myself redundant. But I couldnt get the contracts in place to do the photography that would give me the amount of money I needed it to clear, it became fairly obvious 3 pages in to a bsiness plan that it wasnt sustainable.
As it happened, I'm now self employed again from a redundancy, but this one is consulting for 1 client in the main on a fixed term, with a couple of others now and again, and I can pick up more if I find the need to. I might go back to PAYE at some point, I might not - havent decided yet, but I wont be doing it on the 'I'll never work for another person' it'd be based on a match up of what I want, what they want, and whether there's a future in it
My advice - dont rush into it off the back of a w
ker boss. There are other companies out there The clients I'd worked with were growing frustrated with our product and the company I worked for weren't open to adapting.
I took the jump to sounding out a client about investing in me doing what the market wanted. I sounded out a colleague about jumping with me. I sounded out the other clients to see if they would be my parachute, were I to jump out of the plane.
It's early days yet, but the signs are it was the right thing to do and I have a working business. In some respects it's daunting, employing people from the word go, having immediate need to become profitable, yet on the other it's liberating having the freedom to see opportunities and take advantage of them.
Fingers crossed, and all being well, we should t/o somewhere around £800k in our first year, 50% GP and about 25% net. But that is very much fingers crossed!
I took the jump to sounding out a client about investing in me doing what the market wanted. I sounded out a colleague about jumping with me. I sounded out the other clients to see if they would be my parachute, were I to jump out of the plane.
It's early days yet, but the signs are it was the right thing to do and I have a working business. In some respects it's daunting, employing people from the word go, having immediate need to become profitable, yet on the other it's liberating having the freedom to see opportunities and take advantage of them.
Fingers crossed, and all being well, we should t/o somewhere around £800k in our first year, 50% GP and about 25% net. But that is very much fingers crossed!
11 years ago I made the jump with a mate. We set up a consultancy in an area related to our skills (a particular field within IT). Services are a relatively easy to get into as the barriers are as low as being able to get a contract. Scaling brings challenges but we are up to 20ish in the UK and another 40-odd overseas.
An abbreviated version of events is.
- set up company
- get a couple of contracts
- my partner went p/t on client work and started doing direct sales
- took on a couple more staff
- set up first overseas office (using licence agreement regarding membership of brand etc)
- bought an office
- set up some more overseas offices
Now we are getting to a point where we have been doing this for long enough so will take what we've learned and do something completely different (but still using services model).
Good luck. The biggest barrier is confidence. Luck does play a part IMO but nowhere near as much as graft and a little nous.
An abbreviated version of events is.
- set up company
- get a couple of contracts
- my partner went p/t on client work and started doing direct sales
- took on a couple more staff
- set up first overseas office (using licence agreement regarding membership of brand etc)
- bought an office
- set up some more overseas offices
Now we are getting to a point where we have been doing this for long enough so will take what we've learned and do something completely different (but still using services model).
Good luck. The biggest barrier is confidence. Luck does play a part IMO but nowhere near as much as graft and a little nous.
I got made redundant, which was the kick up the backside that I needed to go it alone.
Be warned though it aint easy and takes a lot of commitment.
For the first year or two you will probably struggle to make ends meet (like i did), but for the last 3 years I have had another problem in that I simply cannot keep up with the demand and pretty much working all of the time, which is tiring.
Be warned though it aint easy and takes a lot of commitment.
For the first year or two you will probably struggle to make ends meet (like i did), but for the last 3 years I have had another problem in that I simply cannot keep up with the demand and pretty much working all of the time, which is tiring.
Another one here who made the jump after being made redundant. Was stuck between finding a startup in London to work for (developer) and going alone. Luckily I had a made who was getting web projects and fulfilling them overseas who hooked me up with some work whilst I was deliberating and just went from there. I've been working for myself now for 3.5 years and haven't looked back.
I have to admit I was in the right position to go alone at the time. Still living with parents (though paying a chunky rent), no dependants, friends in the industry and projects ready to go. I'm not going to say it's been easy because it really hasn't (and poor health has set things back the past 2 years), but I'm just getting to a comfortable position.
I have to admit I was in the right position to go alone at the time. Still living with parents (though paying a chunky rent), no dependants, friends in the industry and projects ready to go. I'm not going to say it's been easy because it really hasn't (and poor health has set things back the past 2 years), but I'm just getting to a comfortable position.
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