if I'd known then what I know now...

trailingspouse

OH and I have just started our 4th year trading, and we've been thinking back to when we first started - and all the things we know now that we wish we'd known back then.

If you run a business - what do you wish you'd known at the beginning?

For us it was the small stuff - we knew how to do what we do, but the fine detail of tax, VAT, PAYE and such was something we had to learn 'on the job'.

paddyrg

I wish I'd understood the process with companies house returns, HMRC returns, and who tells who what, and what you have to tell to whom and when. It's not intuitive!

paddyrg

One other thing I learnt the hard way in a previous incarnation was the value of on-hand cash. Of a client doesn't pay, or pays late, my world doesn't end and I don't end up missing rental payments. Massive relief. Things that could have become problems don't have to become them.

Pennywise

The main thing I'd have done differently would have been to properly invest in equipment and software from day 1. I started out using free/shareware software, an oldish computer, cheap printer, cheap scanner, etc., naively thinking that they'd "do". Looking back, I now see how they sapped my productivity, slowed me down, and caused untold stress.

Likewise with other professional advisers. I wasted days on trying to make my own website, even wasted time on re-wiring the office to improve the lighting and install more sockets, not to mention the time and money wasted on trying to fit a DIY alarm system!

Now, I spend my time earning money in my profession and pay for the right equipment and tradesmen/professionals to do the stuff I'm not trained to do.

Opinion

Organising my filing better!!! Getting ready for my first year end accounts and it's a huge mess. I'm almost embarrassed handing my files over to my accountant. First two months of our inception we were refurbing our property so it was a building site. The amount of stuff that receipts that have gone missing is ridiculous.

Seanymph

I wish I'd known the customer is not always right.

That I didn't need to feel embarrassed chasing money, this is business.

That if you don't focus it doesn't grow

That no matter how well you treat staff they will leave with minimum notice if it suits them.

Annisele

That nobody expected me to pay every invoice the instant I received it. When people give 30 day terms, they're perfectly happy when you pay on day 29.

I know that was very naive of me, but it really can cause cash flow issues if you pay everything instantly but you don't get paid yourself for six weeks.

trailingspouse

Oh yes, receipts!! It took me 2 years to train my OH to keep all his receipts and give them to me.

Mistral001

paddyrg wrote: »

One other thing I learnt the hard way in a previous incarnation was the value of on-hand cash. Of a client doesn't pay, or pays late, my world doesn't end and I don't end up missing rental payments. Massive relief. Things that could have become problems don't have to become them.

This is one that I would give as well. Those people who say (or brag) about starting a business with only £5 in their bank account must be just lucky or have a secret source of money available to them.


When I started in business my accountant basically gave me the same advice. I wish I had listened more carefully to be honest!

cavework

NEVER EVER BE SCARED TO CHASE PAYMENTS .. you have provided the service and are entitled to be paid within your terms and conditions (make sure you make this plain to customers before commencing work)..
Always make sure your quotes are itemised down to the last tiny item..
Always deal with clients via email .. get everything in writing before you start the job
Finally ..make sure your clients are happy once the job is completed with a follow up
.. word of mouth recommendation is worth far far more than an ad in the local paper

somethingcorporate

"Revenue is vanity, profit is sanity but cash is king"

As per the above, if you make sure you have cash on hand regardless of how profitable you are you can avoid going to the wall. Plenty of asset rich and high-turnover companies go to the wall from the simple lack of funds to pay bills when they become due.