Self employed success or bankruptcy!

vitesse

I've read a lot of the diaries on here and they are very inspirational. The level of support, empathy and advice is outstanding. So I thought I'd start one as well. It's as much about getting moral support as debt busting, although both are linked of course. I hope I can provide some humor to to diary as well.

Some background, I started as a self employed consultant (in IT but not development) last February, as well as having a specialist photography business (specialist as in property not anything interesting). I'm also looking at developing a business around web based tool. All businesses are sole trader at this point, although the web tool will need to be a limited company. Over this time things haven't gone as well as they could mainly down to lack of motivation on my side. The prospects are good but I need to get things moving or I'm finished as I have nothing to fall back on, I've got until April to make it work!

There are some external forces that affect my motivation as well as by nature being easily distracted etc not good when you are working alone from home. So the idea of keeping a diary to focus my mind and potentially being nagged about it, offered advice etc should be a good idea.

Unlike most on here I'm a man, hopefully you won't hold this against me. I'm married but my OH has enough worries and doesn't really understand what I do or the self-employed issues. We have a [STRIKE]D[/STRIKE]HD (where H is for Horrid) still at home, she's over 21 and a pain, acts like a black hole draining energy from both of us, I could fill a thread with what she's got up to. I'm also a horse widower, although I do get involved with the pony# and will do most things except ride.
(# pony as in a native pony not a horse, still the same a machine for turning money into manure!)

Financially I'm only really going to look at the business related side, OH pay covers day-to-day finances and together with rent from HD covers pony expenses. My income should pay for all the DD's and SO's plus my business expenses. I have 2 business accounts (consultancy & photography, a current account and a CC). My, little, sister (BoLS) has lent me some money, to tide me over and I've borrowed £750 from OH's pony fund, these are 0% but need to be paid back. The consultancy account has a £2K OD and the current account a £1K OD, oh and there was a £5K business loan as well. I need ~£3K/month to pay all the bills, this covers all DD, SO, loan and the CCs (plus another CC) payments. My aim is to keep the business accounts at £200 & £50 (to cover the payments from them) and to try and keep the current acct at £5K as cash flow is so unpredictable. If/as cash flow becomes more predictable I can reduce that. I am aware that I haven't taken tax into account in any of this, so that needs to be planned for as well but first I need to get through to April. So my financial statement is as below, plus a line for outstanding invoices;

As of: 28-Dec
funds - limit/OD - DD/SO
Consultancy: -£247.36 -£2,000 -£121.83
Photo: £61.68 £0 -£21.33
Current: £2,201.52 -£1,000 -£2,600.00
CC: -£3,850.59 £4,100

loans
BoLS: £5,000.00/£0.00
Horse Fund: £750.00/£0.00

Outstanding Invoices: £2,277.99 (payment in Jan)

As well as making the consultancy/photography work I also want to add some other small income streams if possible and without impacting my main earning. So need to find out more about surveys etc, and see what I've got (not much) that I can eBay.

That's it, for now back soon with goals for 2013.

vitesse

Trying to make this a habit and post everyday.

Trail run at getting pony on trailer, an unexpected success.

Don't do resolutions but have set some BHAG (Big Hard Aggressive Goals) for 2013,

1 - Succeed at self-employment

2 - Launch business (goal 1 must succeed with or without this goal)

3 - Run in a 5 mile race, sub 40min, in June (I've done it before and need to get fit again), with a stretch goal of doing a half marathon in the Autumn

4 - Build a shed/garden-office (think George Clarke's Amazing Spaces not B&Q)

CKhalvashi

Keep up with this everyday, and you'll see it go down. You maybe worth running a business version of a spending diary (where you write everything down).

I've been self-employed since 2004, full-time since 2006, and it can be stressful; depending on how long the business has been running, you will see that your earnings start to level out a bit; started at about £1500 a month in bits and pieces, and ended up with a 26 car taxi firm, before buying another company; it's all about dedication.

Good luck!

CK

Piquant_2

*subscribed*

Reporting in for support and [STRIKE]nagging [/STRIKE] and advice.

Piq

vitesse

CKhalvashi wrote: »

Keep up with this everyday, and you'll see it go down. You maybe worth running a business version of a spending diary (where you write everything down).

CK

Thanks,

Do this, just changed my Expenditure spreadsheet (spending diary) to separately list any business related spending. Also keep a finance spreadsheet for consultancy & photography costs & revenue.

Another goal is to write a guide to starting up in business and step 1 is keep records.

vitesse

Woke up today with a hangover like headache, but didn't have any alcohol yesterday, not fair!

So today's (rest of week really) things to do are;

Prepare for 2 meetings, one about a conference presentation and possible use of the yet to be built tool. Must polish up mirror and get some smoke grenades... The other about possible sub contracted consultancy, need to treat that one like an interview, as it would be a useful income stream.

Also need to some chasing around for my main current project where I need to write a programme guide and presentation by 21st. Plus chase up the contract for 9 more days work.

At least I'll have the house to myself and can start my drink water and green tea instead of too many mugs of tea regime.

CKhalvashi

The best thing to do, is to treat every presentation as though you're already contracting for the company; instead of 'we are able to do.....', it's 'We can integrate this into our service at a discounted rate, with this and that and the other, therefore keeping all these services under one roof and giving a 10% discount at the same time'

With regard to the subcontracting work, treat it as formally as an interview, but use it as a way to showcase your skills and services; you never know, doing this will leave the door open to further work, rather than only that one project.

CK

Piquant_2

Excellent advice from CKhalvashi there on the presentations. It also works well with any meetings too.

vitesse

The presumptive sale... words are so powerful.

The 2 meetings I had arranged for the same day (as they were reasonably close) have split to separate days one in London, but I've been able to add another meeting in London to make it a bit more of a worthwhile trip.

The meeting about contracting is with a company that places consultants into businesses, so hopefully very much repeat business.

I've always talked about a portfoloio career but I prefer patchwork, as found on Piquant's diary I think, as all bits are linked (well not the photography).

vitesse

Yesterday

Bad 1: £60 went out in SOs that I thought I had cancelled to 'savings' accounts my OH had set up :mad:. 'Savings' when we have CCs to pay off! She was also overpaying the mortgage, fine in principle but not when we have other much higher % debts to pay, put a stop to that.

Bad 2: Spent too much time reading DFDs and discovered Swagbucks (which I think is too much time for too little reward when I have other things to do).

Bad 3: Because of above didn't make any head way into preparation for meetings or programme guide.

Good 1: Got a bit more organised and followed up on a few things

Good 2: Sorted out a prospecting meeting for next week that covers 2 patches of my portfolio

Good 3: Went for a run at lunchtime, OK only 3K and some walking was done I find it hard to pace myself so end up running at a fast(ish) pace and having to slow to a walk. Sore legs today though will go again tomorrow.

Good 4: Only drank Green Tea.

Today

Need to take HD to station as she is away for 2 days, is it bad to think hurray :T Need to buy a couple of bits on the way back. Then walk dogs in soggy fields and get pony in through gates of gloop!

Perhaps with HD away tonight is time for a chat with OH, in the past I've delegated all financial things to her while I put my head in the sand. Trouble is any discussion with her will result in her saying we need to; sell house, horse, trailer, file for bankruptcy etc Rather than sit down and work out where we are and take small steps to sort it out.

vitesse

Yesterday

Bad 1 - banged head on car door, and legs really hurt after run on Wednesday.

Bad 2 - no progress in discussing with OH, will just solider on with sorting out the business side of things for now. To be fair there's not a lot more she can do.

Bad 3 - no real progress on preparing for meetings next week.

Good 1 - didn't buy anything as decided I didn't really need them now or at all.

Good 2 - talked to my contact for my major project and all on track with possibility/probability for more work in a related area.

Today
Get prepared for meetings next week!
Will probably have to collect HD from station, I mean can't possibly expect her to use a bus can I (like I do when I go by train).