New Enterprise Allowance scheme - My story

pinkypoopydoo

andyscott wrote: »

What makes you want to go self employed instead of employment?

For me there are a number of reasons,

1) Childcare Issues. There is no childcare in my area, and while it would be possible to find a job that is workeable during the school term, holidays would be a whole new ballgame. With self employment, I can do minimal work during the DAY during holidays, and work in the evenings, if need be.

2) Like you, the prospect of being able to one day employ my children, and give them the option to masters of their own financial destiny is a big attraction. To be able to leave a strong company for them to continue to build as they see fit.

3) Independence. I am notoriously bad at being being told what to do, and it would be next to impossible to walk back into a senior management position after being at home with children for 10 years would be nigh on impossible.

4) The thought of being in charge of my destiny. I've been screwed over by my ex - I was the higher earner, and he promised to look after me, and look after our children, if I left work. I did, then he left us, and is now doing everything possible to avoid paying maintenance. I refuse to ever be in a position where I am relying financially on anyone again. If I make money, I will be able to spend it how I see fit, without having to justify my expenditure.

Lady_strange

andyscott wrote: »

What makes you want to go self employed instead of employment?

1. I have a chronic illness, which wouldn't be recognised by Atos for the purpose of ESA, and employers don't like it when you phone in sick, because you have yet another infection, or didn't sleep well, or have doctors/specialists apts.

So being my own boss, means I can set my own hours, which at the moment are weekends and evenings, so I know I can get enough sleep. and have long lie ins when I need it. And if I don't feel like going into the office to do work, i can work from the comfort of me bed when I am having a really bad day.

2. I hated seeing people being ripped off by other studios, and not getting what they wanted out of their recording session. My partner has been a musician for over 28 years, and he has guided me through the studio build from a musicians point of view.

3. I applied for well over 300 jobs, and heard nothing back, which was so disheartening. I have had several people ask about working for me, and although I have no jobs available at the moment, as I am building the business slowly, I have made sure I replied to everybody, because I hated how frustrating it was to not hear anything back.

4. I wanted to create some security for my family, and jobs for my step son, and any more children me and my partner may have. We don't know how the world is going to go at the moment, but I want my kids to have the knowledge that there is something for them to fall back on if they need it, so they dont have the horror of dealing with the job center :rotfl:

5. I am greedy, and don't want my hard work to line the pockets of somebody else, lol. I love the fact that I know what every penny I earn is going on. (even though at the moment, I am left with pennys when the bills are paid, lol, but we are getting there )

feadie66

Hi
I am currently in receipt of JSA as a lone parent and am hoping to start my own business - and won't be making much money initially so need all the support I can get to keep me and the kids afloat.
My adviser has recommended NEA but having read this thread I think I will be better off getting in-work credit (£60 pw for 52 weeks) . Looks like NEA provides less support than this amount and I wouldnt take up the loan - are there any other advantages to NEA that I'm missing?
The question is am I missing something important about NEA? or should I just sign off and get the in-work credit?

BigAl127

feadie66 wrote: »

Hi
I am currently in receipt of JSA as a lone parent and am hoping to start my own business - and won't be making much money initially so need all the support I can get to keep me and the kids afloat.
My adviser has recommended NEA but having read this thread I think I will be better off getting in-work credit (£60 pw for 52 weeks) . Looks like NEA provides less support than this amount and I wouldnt take up the loan - are there any other advantages to NEA that I'm missing?
The question is am I missing something important about NEA? or should I just sign off and get the in-work credit?

Financially the NEA pays £1274 over the 26 weeks, so the Back to Work Credit pays more in monetary terms. However, having said that, it all depends on what you already know about self employment.

Through the NEA you get a mentor for whilst you're preparing your business plan, and for 26 weeks after you start trading. As with most things in life, there are good and bad mentors.

As part of my NEA for the business plan, I had to do a short college course, which included everything from what you want from your business, through to marketing ideas, accounts, profit & loss, cashflow forecasts, insurances, business format i.e. sole trader, partnership, Limited Company, Community interest Company etc, and a multitude of other things.

So like I say, it depends how close you re to starting a business and what you're aware of or not. Only you know that. But as we were taught and I've heard several times since, "Fail to plan, Plan to fail"

andyscott

feadie66 wrote: »

Hi
I am currently in receipt of JSA as a lone parent and am hoping to start my own business - and won't be making much money initially so need all the support I can get to keep me and the kids afloat.
My adviser has recommended NEA but having read this thread I think I will be better off getting in-work credit (£60 pw for 52 weeks) . Looks like NEA provides less support than this amount and I wouldnt take up the loan - are there any other advantages to NEA that I'm missing?
The question is am I missing something important about NEA? or should I just sign off and get the in-work credit?

You already know the difference in weekly benefits finance wise between in work and NEA and you have said you would not take up the loan so there would be 2 other main points to consider.

1. With NEA you are given a mentor. I dont agree that a mentor is always a positive thing. Some business like window cleaners, gardeners etc dont really need someone to advise on marketing and sales etc as much as some other business sectors would. I also think that sometimes when you approach these mentors on such schemes they expect you to be planning a really big business when sometimes you get people that just want to stay small and make a enough to live on.

2. With NEA you have to submit a business plan to the mentor and have it approved for you to be allowed onto NEA, its not just a matter of your advisor saying go for it. Where as with In work credit you can just decide to go for it.

3. With NEA you still have to attend appointments to show that you are trading.

I think it mainly comes down to how much you need a mentor. Remember there are also business atrt up forums around that you can get advice from.

What type of business is it that your looking to set up?

andyscott

BigAl127 wrote: »

Through the NEA you get a mentor for whilst you're preparing your business plan, and for 26 weeks after you start trading. As with most things in life, there are good and bad mentors.

"

Your right there are good and bad mentors.

I have heard a few on here say they have had a good mentor but 7 years ago I tried to get funding on a government business start up scheme.

I had been working with a mate doing window cleaning and due to ill health he asked me if I was interested in buying his well established business. my mentor decided to send me on lots of courses like marketing, sales, accountancy, IT.

After I had been through all the courses and my business plan had been finalised I got knocked back for funding as I never had driving license.

My mentor knew that at the start and he also knew that for the past 12 years my mate had not been able to drive but had been keeping ladders in a customers garden.

pinkypoopydoo

I've never heard of in-work credit before. If a business plan is turned down for NEA, can you still qualify for in-work credit?!

TeeKay10

Ok, so following a phone call yesterday I've been accepted on to the NEA for my domestic cleaning business idea, which is good news (I hope, lol!)

Unfortunately they are that in demand that there 'could be' a wait of up to 6 weeks before being matched with a mentor...

I am signing on tomorrow - what, if anything, will change now that I'm accepted onto the scheme? Or is everything as is, until I get the business plan approved?

T.I.A

sun_shine_2

TeeKay10 wrote: »

Ok, so following a phone call yesterday I've been accepted on to the NEA for my domestic cleaning business idea, which is good news (I hope, lol!)

Unfortunately they are that in demand that there 'could be' a wait of up to 6 weeks before being matched with a mentor...

I am signing on tomorrow - what, if anything, will change now that I'm accepted onto the scheme? Or is everything as is, until I get the business plan approved?

T.I.A

That's great news I was also accepted onto the NEA yesterday and was told there was a bit of a waiting list for a mentor too, but i have been sent lots of information via email to get me started. I signed on today too and told them at the JC about the NEA and i haven't been told to keep looking for work. I have got a form to fill in to declare any earnings i may start to get because i am already getting enquiries through word of mouth :j Now i need to concentrate on my Business Plan.

TeeKay10

Thanks, and great news for you too sun_shine! :j

I also got sent lots of useful info by email to look through and study before the mentoring starts, including a good business plan template, plus I am starting a book keeping course (arranged free through the DWP) tomorrow so lots to keep the ol' brain going at the mo!

Just for anyone's info, I'm doing the NEA through a firm called 'Business in the Community'. I'm in Derby although my nearest offices are apparently in Nottingham. I know nothing about them except that they are linked to the Chamber of Commerce and other bodies, but the lady on the phone seemed very informative and helpful.

We'll see what the DWP have to say on sign on day tomorrow - it'd be great not to have to do the 28 'steps' a fortnight that I have to do to look for work! It seems silly to do this now (IMO) as by applying for jobs that I don't actually want anymore, I could be preventing someone else from being selected for interview, not to mention wasting the time of the person advertising the vacancy.

Also (it may have been mentioned earlier in the thread, apologies if so, my memory is rubbish!) the HMRC do free 'webinars' online to do with self employment (amongst other things) which may be worth a look, plus my council (Derby City) do some adult learning courses which are also free to benefit claimants. All sorts of things from starting a business, to accountancy for beginners etc etc. Maybe your own council run a similar scheme too?