Considering Becoming Self Employed

Smiley87

Morning,

I'm looking into starting my own business and am here looking for some advice.

I currently work full time in the education sector, but am spending time each week researching the sector I would like to move into and understanding what is required of those that are self employed.

Is there anyone that's made the switch? How did you find it? What needs to be considered? Are you happy with the decision that you made?

Any advice would be greatly appreciated. Thanks in advance!

andygb

It is hard work to get a business up and running Smiley, we have still not managed it after nearly a year.
I would suggest that you contact your local chamber of commerce, to see if they have any free courses for new business startups, and they may hold out of hours meetings where you can meet other business people in your area (good for networking and advice).
They should be able to advise you on business plans, finance, tax, competition and marketing, and a whole load of other things which you never experience when working for a company or organisation.
Good luck!

paddyrg

I'm afraid there's just too little info there to offer much help! But rest assured there are millions of self employed and small business owners around the country, and they all come from somewhere ;-)

Smiley87

Hi andygb - out of interest, what business sector is it that you're in? I've looked into funding to see whether we are eligible for any grants to help finance starting up and I'm waiting to hear back with regards to courses. It's a bit of a juggling act trying to fit it around my full time job, but I'm trying to lay the foundations this year with an aim of becoming self-employed by this time next year.

Thanks for the encouragement paddyrg.

Undervalued

Don't underestimate how many non chargeable hours work have to be done each week by any one man band.

If you really only want to work the same number of hours per year as you would with a PAYE job (allowing for paid holidays and an average few days sick) plus want to budget for the equivalent of your employers pension contributions and other benefits it is amazing how much you need to bill for each chargeable hour.

Obviously there are some tax benefits to be had but equally there are costs such as professional and public liability insurance etc etc.

Do your sums very carefully. Only you can put a value on the sense of freedom and balance this against, presumably, far less security.

Smiley87

Thanks for your response, Undervalued. I plan to spend the next few months getting my head around the numbers and then, if it's viable, take the plunge in the new year to get everything set up, start working evenings and weekends with an aim to leave my job next summer, so that I can throw everything I have into the business.

I'm not afraid of hard work or not getting the same level of pay for a while. There's other things that I value more than those that would come from being self employed. Thanks for your advice Undervalued - it is greatly appreciated.

andygb

Smiley87 wrote: »

Hi andygb - out of interest, what business sector is it that you're in? I've looked into funding to see whether we are eligible for any grants to help finance starting up and I'm waiting to hear back with regards to courses. It's a bit of a juggling act trying to fit it around my full time job, but I'm trying to lay the foundations this year with an aim of becoming self-employed by this time next year.

Thanks for the encouragement paddyrg.

Hi Smiley, I won't go into exact details, but the business involves digital imaging along with mentoring and tuition.
It is stuttering at the moment because of website problems (been messed about twice by people who were recommended to me) and getting continuity. It is frustrating but I am not giving up.

paddyrg

Smiley, I'd suggest being happy with receiving a dramatically lower rate of pay, not the same rate of pay. People frequently underestimate the work involved just to get to NMW position

Smiley87

andygb wrote: »

Hi Smiley, I won't go into exact details, but the business involves digital imaging along with mentoring and tuition.
It is stuttering at the moment because of website problems (been messed about twice by people who were recommended to me) and getting continuity. It is frustrating but I am not giving up.

I hope your website problems get resolved soon. Is it a well know company that you're using or small businesses? I'm only asking because I'm looking into websites and the costs related to them to include in my sums.

Smiley87

paddyrg wrote: »

Smiley, I'd suggest being happy with receiving a dramatically lower rate of pay, not the same rate of pay. People frequently underestimate the work involved just to get to NMW position

Yea, I've got it in my head that things won't be like they are right now for a while - income wise. I've got a few things planned to try and alleviate any income related issues. Those ideas I'm going to get running before Christmas to see how they do and then I'll have a better idea of how to survive making a lower wage initially.

Mersey_2

Register with HMRC as Self-employed (within 3 months of trading).


Working Tax Credits may be a possibility depending on your circumstances. There's also some grants and start up loans available.


If you have any spare time, there's also other things that could bring in some income. All be aware that eg mystery shoppers only tend to earn £25-50/week on average.


Some entrepreneurs also offer drop in clinics which are free (one in my city operates out of the library for 2 hours per week).


Late payment of your invoices is the main problem the newly self-employed experience and notice.


A better work/life balance and being your own boss is the best part.