Self employed people - the leap
Discussion
Anyone care to share their stories?
What was it like?
How did you do it?
Were you pushed into it?
Did it nearly cost you everything?
What do you do now?
Are the financial rewards worth it?
Is life better?
Do you regret it?
A million other questions!
I want to, but can't afford to for a few years.
What was it like?
How did you do it?
Were you pushed into it?
Did it nearly cost you everything?
What do you do now?
Are the financial rewards worth it?
Is life better?
Do you regret it?
A million other questions!
I want to, but can't afford to for a few years.
crofty1984 said:
Anyone care to share their stories?
What was it like?
Still doing it. It's great!
How did you do it?
The oppurtunity came up for me and my Father to move to Ireland. We decided to do it and take advantage of the fact that hardly anyone here does what we do.
Were you pushed into it?
Not at all.
Did it nearly cost you everything?
About 60% of our savings was used, mainly on building premises etc but we quickly recouped that.
What do you do now?
Gearbox reconditioning, specialising in Automatics but can do anything. Combined experience of over 40 years.
Are the financial rewards worth it?
Absolutely! Without sounding big headed, the ammount of money that I am able to "play" with is amazing. Plus business is booming, so at the moment I'm raking the cash in.
Is life better?
Indeed. See above!
Do you regret it?
Nope. Can't see myself ever regretting it to be honest!
A million other questions!
I want to, but can't afford to for a few years.
What was it like?
Still doing it. It's great!
How did you do it?
The oppurtunity came up for me and my Father to move to Ireland. We decided to do it and take advantage of the fact that hardly anyone here does what we do.
Were you pushed into it?
Not at all.
Did it nearly cost you everything?
About 60% of our savings was used, mainly on building premises etc but we quickly recouped that.
What do you do now?
Gearbox reconditioning, specialising in Automatics but can do anything. Combined experience of over 40 years.
Are the financial rewards worth it?
Absolutely! Without sounding big headed, the ammount of money that I am able to "play" with is amazing. Plus business is booming, so at the moment I'm raking the cash in.
Is life better?
Indeed. See above!
Do you regret it?
Nope. Can't see myself ever regretting it to be honest!
A million other questions!
I want to, but can't afford to for a few years.
Do it as soon as you can. It's by no means easy, but provided you choose the right trade sector to work in, then you will see yourself making a tidy profit.
I'll give it a go.
What was it like?
A bit scary at first without the security of being a staffer but that soon passed, been self employed for 4 years now.
How did you do it?
A mate had already jumped ship and I decided to bite the bullet as well.
Were you pushed into it?
Got sick of working with the bunch of t
ts at the company I was working for.
Did it nearly cost you everything?
Not at first but a year after I went self employed the arse fell out of the industry I work in and I was out of work for 8 months over the course of a year, it's slowly picking up now though.
What do you do now?
Buiding services draughtsman.
Are the financial rewards worth it?
Definitely!
Is life better?
Much better. I'm my own boss, can work as much or take as much holiday as I like. Although I take less holiday now than I did when I was staff, I tend to take breaks between contracts so probably won't have any time off now 'til well into the summer.
Do you regret it?
Not at all, best decision I ever made, even though money was tight for a while when out of work.
Hope that's of some use!
What was it like?
A bit scary at first without the security of being a staffer but that soon passed, been self employed for 4 years now.
How did you do it?
A mate had already jumped ship and I decided to bite the bullet as well.
Were you pushed into it?
Got sick of working with the bunch of t
ts at the company I was working for.Did it nearly cost you everything?
Not at first but a year after I went self employed the arse fell out of the industry I work in and I was out of work for 8 months over the course of a year, it's slowly picking up now though.
What do you do now?
Buiding services draughtsman.
Are the financial rewards worth it?
Definitely!
Is life better?
Much better. I'm my own boss, can work as much or take as much holiday as I like. Although I take less holiday now than I did when I was staff, I tend to take breaks between contracts so probably won't have any time off now 'til well into the summer.
Do you regret it?
Not at all, best decision I ever made, even though money was tight for a while when out of work.
Hope that's of some use!
crofty1984 said:
Anyone care to share their stories?
What was it like? Hard work to start with but goodHow did you do it? I got together with a friend in the same business, we looked for contract work so one of us could earn whilst the other worked on software of our own to resell. Once we had something together we looked for customers and built from there.
Were you pushed into it? Not at all, only by frustration of working for other people
Did it nearly cost you everything? No, we were always earning and my wife was earning enough for us to live on if I went for a while with no income
What do you do now? I run the small group of companies that we've built over the intervening 20 years or so
Are the financial rewards worth it? It would have been worth it even if we weren't better off. But we are, massively so
Is life better? Yes, much better
Do you regret it? Not in the slightest.
crofty1984 said:
Anyone care to share their stories?
What was it like?
What was it like?
crofty1984 said:
How did you do it?
Plotted during smoke breaks, set things up and went for it.crofty1984 said:
Were you pushed into it?
Not really. I was in an ok job that paid an ok salary, but was missing some very obvious and sensible things that we could do better.crofty1984 said:
Did it nearly cost you everything?
Yes. I was down to borrowing money for rent from my girlfriend.crofty1984 said:
What do you do now?
I try and make sure it was a very worthwhile gamble!crofty1984 said:
Are the financial rewards worth it?
I hope so in the long term. I'm currently better off than I was when I left my job, and I would be very disappointed not to be significantly better off still this time next year.crofty1984 said:
Is life better?
Definitely. I'm my own man. If I have a bad month it's because I didn't put the work in, if I have a good month it's because I did, and the rewards are my own to enjoy.crofty1984 said:
Do you regret it?
Not for a minute.crofty1984 said:
A million other questions!
I want to, but can't afford to for a few years.AJS- said:
crofty1984 said:
Is life better?
Definitely. I'm my own man. If I have a bad month it's because I didn't put the work in, if I have a good month it's because I did, and the rewards are my own to enjoy.crofty1984 said:
I want to, but can't afford to for a few years.
As I see it, it's like having a baby, buying a house or almost any other major life changing decision - there's almost never a "right" time, and at any given moment there's a million reasons why not. You have to make the leap, as you rightly put it, and sacrifice everything else to go and do it.I think I'd need to save at least a couple of month's outgoings plus start-up costs and moving costs.
crofty1984 said:
The top one is what appeals most. My job is fine, the people are fine, the work is fine. But what would be nice is that if I work my arse off, there's a significant difference between doing that and doing the bare minimum.
I think I'd need to save at least a couple of month's outgoings plus start-up costs and moving costs.
Well if you're after money next year forget it. I could probably be doing better financially as an employee, last year, and maybe this year as well. The point is that in the long LONG run I hope to be better off. I think I'd need to save at least a couple of month's outgoings plus start-up costs and moving costs.
As for planning, I would budget yourself at least 6 months cash-flow. 2 months is the time it takes to collect an invoice, and if you're depending on it for your food, that isn't much fun!
AJS- said:
Well if you're after money next year forget it. I could probably be doing better financially as an employee, last year, and maybe this year as well. The point is that in the long LONG run I hope to be better off.
As for planning, I would budget yourself at least 6 months cash-flow. 2 months is the time it takes to collect an invoice, and if you're depending on it for your food, that isn't much fun!
Oh, it's OK, I expect in the first couple of years it's the difference between fAs for planning, I would budget yourself at least 6 months cash-flow. 2 months is the time it takes to collect an invoice, and if you're depending on it for your food, that isn't much fun!
k all and slightly more than fk all 
But you get that slightly more because you worked damn hard for it.
I've posted this before, but for what it's worth:
I started a business, retail / service in my town centre, which is a wealthy city where the recession hasn't made a huge dent.
I made a living for four years. A living - just - nothing more. Way less than my huge London salary I was used to. Like about a third.
I have never worked so hard. It's never off your mind. You worry constantly and get blurry eyed from looking at figures and forecasts.
The customers were, for the most part, ok, with one or two 'difficult' ones, but on the whole, nice to interact with.
Employing staff is a nightmare, they were generally lethargic at best, and I guess predictably not as interested in my business and it's survival as me. To be expected I suppose, but equally frustrating. Oh, and my previous role included recruitment with psychometric profiling, so I'm quite good at hiring the right kind of people. God knows what 'bad' staff are like, lol!
But by far the worst part was dealing with f*ckwit suppliers, the likes of BT, British Gas, Yellow Pages, Streamline (card machines) etc. I have literally lost count of the amount of times they've continuously fked up bills, services, in fact everything they were supposed to do, they did not do, and they did even that with breathtaking incompetence and inefficiency. I reckon of the four years I spent running the business, I spent a year of it on the phone sorting out other people's cock ups at these places. Piss boiling - you have not even come close.
The there's inflexible landlords for the premises.
Paying ridiculous business rates that seem to increase every year in an inversely proportional rate to your profits, or lackof. And trying to make sense of a business rates bill, with 'multipliers', 'reliefs' and 'rateable values' is impossible - all I know is that the figure I had to pay at the bottom of the bill was ridiculous. And then they introduced a 'business improvement' levy of another £250 pa to pay for 'improvements' to the local area, like bloody chewing-gum removal machines. Sorry, isn't that what my business rates and council tax are for????
And finally, you get BOMBARDED with sales calls for all kinds of irrelevant crap of no use whatsoever. Normally IT / website companies, advertisers, recruitment agencies. Ok yes, these people are just trying to earn a living, but as an owner / worker in the shop, after the tenth time-wasting call of the day, it gets a bit wearing, know what I mean? And they won't take no for an answer, they keep trying to 'close' me for at least an appointment, and even when I tell them I used to be in sales and it is having no effect, they still won't fk off.
So yeah, it taught me a lot and was, I guess, quite fulfilling in a 'life lesson / 100 things to do before you die' kinda way.
Would I run my own business again?
Well, let's just say it was a huge releif the day I sold it on, and I'm now back in senior management at a great little company, as an employee...
HTH.
Oh, and whatever you do, don't spend your savings on house improvements yet - you never know when you might need them...
I started a business, retail / service in my town centre, which is a wealthy city where the recession hasn't made a huge dent.
I made a living for four years. A living - just - nothing more. Way less than my huge London salary I was used to. Like about a third.
I have never worked so hard. It's never off your mind. You worry constantly and get blurry eyed from looking at figures and forecasts.
The customers were, for the most part, ok, with one or two 'difficult' ones, but on the whole, nice to interact with.
Employing staff is a nightmare, they were generally lethargic at best, and I guess predictably not as interested in my business and it's survival as me. To be expected I suppose, but equally frustrating. Oh, and my previous role included recruitment with psychometric profiling, so I'm quite good at hiring the right kind of people. God knows what 'bad' staff are like, lol!
But by far the worst part was dealing with f*ckwit suppliers, the likes of BT, British Gas, Yellow Pages, Streamline (card machines) etc. I have literally lost count of the amount of times they've continuously fked up bills, services, in fact everything they were supposed to do, they did not do, and they did even that with breathtaking incompetence and inefficiency. I reckon of the four years I spent running the business, I spent a year of it on the phone sorting out other people's cock ups at these places. Piss boiling - you have not even come close.
The there's inflexible landlords for the premises.
Paying ridiculous business rates that seem to increase every year in an inversely proportional rate to your profits, or lackof. And trying to make sense of a business rates bill, with 'multipliers', 'reliefs' and 'rateable values' is impossible - all I know is that the figure I had to pay at the bottom of the bill was ridiculous. And then they introduced a 'business improvement' levy of another £250 pa to pay for 'improvements' to the local area, like bloody chewing-gum removal machines. Sorry, isn't that what my business rates and council tax are for????
And finally, you get BOMBARDED with sales calls for all kinds of irrelevant crap of no use whatsoever. Normally IT / website companies, advertisers, recruitment agencies. Ok yes, these people are just trying to earn a living, but as an owner / worker in the shop, after the tenth time-wasting call of the day, it gets a bit wearing, know what I mean? And they won't take no for an answer, they keep trying to 'close' me for at least an appointment, and even when I tell them I used to be in sales and it is having no effect, they still won't fk off.
So yeah, it taught me a lot and was, I guess, quite fulfilling in a 'life lesson / 100 things to do before you die' kinda way.
Would I run my own business again?
Well, let's just say it was a huge releif the day I sold it on, and I'm now back in senior management at a great little company, as an employee...
HTH.
Oh, and whatever you do, don't spend your savings on house improvements yet - you never know when you might need them...
FunBusMk2 said:
If a meeting I have later this month results in what I want, I'll be going self-employed (Limited company) in consultancy. Nervous? Yes.
I'll watch this thread with interest.
If going down the limited company route it is good practice early on to forget the term "self employment". You are not self employed from a legal or tax point of view and confusing your status can lead to all sorts of problems.I'll watch this thread with interest.
What was it like?
Exhilarating and daunting
How did you do it?
A friend started contracting and we saw a niche in the market. I joined him and we went from there.
Were you pushed into it?
No
Did it nearly cost you everything?
No
What do you do now?
Am co-owner of an IT security consultancy firm
Are the financial rewards worth it?
The financial rewards are OK. I would be earning similar if I was working for someone else. It is the (relative) freedom of decision making and the fun of being my own boss that is most rewarding.
Is life better?
Yes
Do you regret it?
Not at all
Exhilarating and daunting
How did you do it?
A friend started contracting and we saw a niche in the market. I joined him and we went from there.
Were you pushed into it?
No
Did it nearly cost you everything?
No
What do you do now?
Am co-owner of an IT security consultancy firm
Are the financial rewards worth it?
The financial rewards are OK. I would be earning similar if I was working for someone else. It is the (relative) freedom of decision making and the fun of being my own boss that is most rewarding.
Is life better?
Yes
Do you regret it?
Not at all
Eric Mc said:
FunBusMk2 said:
If a meeting I have later this month results in what I want, I'll be going self-employed (Limited company) in consultancy. Nervous? Yes.
I'll watch this thread with interest.
If going down the limited company route it is good practice early on to forget the term "self employment". You are not self employed from a legal or tax point of view and confusing your status can lead to all sorts of problems.I'll watch this thread with interest.
Thanks for that, something I wasn't aware of.
Do some reading. Distinguishing between the differences of operating as a sole trader (i.e. self employed) and running your own limited company are numerous and can lead to real problems for those who think that their limited company is some sort of simple sole trader arrangement.
It is not. It is much more complex with far more complex company law, Corporation Tax and personal tax and NI ramifications.
It is not. It is much more complex with far more complex company law, Corporation Tax and personal tax and NI ramifications.
What was it like?
I've loved working for myself from the minute I started.
How did you do it?
I built up a client base while still employed and then made the switch when I had enough work to keep me busy coming in every single month. Research has indicated that it takes translators about 2 years to build up enough of a client base to make working freelance profitable, but I found it took less time than that. Although I did hang around until the workload was 100% consistent before I made the leap.
Were you pushed into it?
Not at all. I couldn't wait to get going.
Did it nearly cost you everything?
Nowhere near. It took up a lot of time initially - and even now it could take up too much time if I'd let it, but I won't! - but it was worth investing my time to build up my client base.
What do you do now?
I'm a full-time translator, proofreader and copywriter.
Are the financial rewards worth it?
Yes. I earn about five times what I was getting paid as an employee. I do miss the paid holiday sometimes, but I'm past the stage where I think "OMG, this week is costing me £££ because I'm not working". Now I just look on it as maintaining the life-work balance.
Is life better?
Definitely! I love the flexibility - if my son has an unscheduled day off school because the teachers are striking or he's ill, then I'm here. If he needs picking up early because he's ill - no problem. If I'm not busy and it's a nice day, I can take a couple of hours off. If the weather is nice, I can get out the laptop and work in the garden. Loads of advantages.
Do you regret it?
Nope. Never. I can't imagine doing anything else now.
Good luck with your plans.
I've loved working for myself from the minute I started.
How did you do it?
I built up a client base while still employed and then made the switch when I had enough work to keep me busy coming in every single month. Research has indicated that it takes translators about 2 years to build up enough of a client base to make working freelance profitable, but I found it took less time than that. Although I did hang around until the workload was 100% consistent before I made the leap.
Were you pushed into it?
Not at all. I couldn't wait to get going.
Did it nearly cost you everything?
Nowhere near. It took up a lot of time initially - and even now it could take up too much time if I'd let it, but I won't! - but it was worth investing my time to build up my client base.
What do you do now?
I'm a full-time translator, proofreader and copywriter.
Are the financial rewards worth it?
Yes. I earn about five times what I was getting paid as an employee. I do miss the paid holiday sometimes, but I'm past the stage where I think "OMG, this week is costing me £££ because I'm not working". Now I just look on it as maintaining the life-work balance.
Is life better?
Definitely! I love the flexibility - if my son has an unscheduled day off school because the teachers are striking or he's ill, then I'm here. If he needs picking up early because he's ill - no problem. If I'm not busy and it's a nice day, I can take a couple of hours off. If the weather is nice, I can get out the laptop and work in the garden. Loads of advantages.
Do you regret it?
Nope. Never. I can't imagine doing anything else now.
Good luck with your plans.
Eric Mc said:
It is not. It is much more complex with far more complex company law, Corporation Tax and personal tax and NI ramifications.
Cheers. I'm going through a management company which will take care of my incorporation and management of tax etc. I'm currently working under an umbrella company so am wanting to step away from this.What is the difference between a "Management Company" and an "Umbrella Company"?
What will your status be in the "Management Company"?
A director?
An employee?
A shareholder?
Something else?
Will they be able to pay you outside of the normal PAYE system?
Do you expect them to?
If so, how do you intend to manage your NI comntributions and tax affairs?
Will you be required to submnit a Self Assessment tax return?
If so, what will you be disclosing?
Have you thought about IR35?
What will your status be in the "Management Company"?
A director?
An employee?
A shareholder?
Something else?
Will they be able to pay you outside of the normal PAYE system?
Do you expect them to?
If so, how do you intend to manage your NI comntributions and tax affairs?
Will you be required to submnit a Self Assessment tax return?
If so, what will you be disclosing?
Have you thought about IR35?
IR35 is something I have thought about most definitely. I don't think I've been very clear either! I will be a limited company and a director of this company. The company is called 'Champion' and would, for a fee of course ensure I meet relevant legislation, law, inland revenue requirements and payments. They can also assist with my incorporation. I'm fully aware though there is still a massive onus on me to understand and be aware of relevant law/legislation etc. I'll not rely on others solely to manage my company.
http://www.champion-contractors.co.uk/index.htm
http://www.champion-contractors.co.uk/index.htm
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