So who's self employed then?

[Lugy]

When I first started my apprenticeship I had a dream of eventually starting my own company. I was close to doing it last year but decided against it. Now however I'm going for it. I guess it's a combination of wanting to be successful and work hard for myself to reap the benefits instead of giving them to someone else - the job I'm working on just now will net the company £2800 for maybe 3 eight hour shifts! I'd settle for that over a month!

Part of my motivation is a Bentley Arnage T as the wallpaper on the PC at work. A few years off maybe but we can but dream

So who else has become self employed? Any success stories? Any tips/encouragement?

 

[tippandy]

Best of luck for the future it will be hard going for a while but worth it in the end.

 

[Lugy]

Best of luck for the future it will be hard going for a while but worth it in the end.

Yeah, I'm forseeing a lack of Saturday night enjoyment for a while

 

[renault12ts]

Self employment...that time of your life when you understand the meaning of "cashflow".

 

[tippandy]

and holiday pay

 

[ringway]

I am self employed and my boss is a right b4st4rd.

Never won an argument with him yet.

 

[Niks]

I went self employed last year, but crashed and burned.. now back to working a full time job! However, im looking to soon start all over again!

 

[Big Dan]

Beware the Tax Man and get to know the late payment of commercial debts legislation if working for other companies! :-(

 

[ringway]

I'd advocate a good accountant.

A nice accountant who knows next to nothing is no man's friend - get yourself a mean geezer and worry not how much more expensive he is than your mate's dad. The difference between the two will become galringly obvious... One day! I'm talking from experience btw.

 

[Dryce]

Any tips/encouragement?

1) Unless you've got independent means 'working for yourself' means you carry the can.

2) Before taking on staff get some employment law advice and sort out contracts.

3) Never put your house on the line. Especially if it's ultimately to guarantee the salary bill.

4) Get a sensible accountant.

5) Don't assume that you will pay less tax or that you can put everything through on expenses.

6) Watch out for personal liability - set up a limited company

7) It can be very stressful (not the fake stress that employees get but the worlfd falling in around you that small business people get) and there's no escape.

8) It can eventually be very rewarding

9) Time is precious and unlike money you can't earn it back. So pouring several years of your life away on a failure is worse than writing off the money and starting again after one.

10) Similarly if you don't try you don't get.

 

[christopherwk]

I'm sort of self-employed, I work on behalf of one company who provides me with the work (as with most in my type of work, although some may work for more than one company).

Trouble is, in order to get "better/more" work over other's who also work on behalf of the same firm, you have to work quite hard, and do the hours, otherwise they won't bother.

You've got the usual pension/holiday/health care to consider as well. So far this year, I've only taken 4 days off work, and in December, 1 day off (the 16th).

In fact, looking at my Spritmonitor link signature, the days I have off work, are the days I don't buy any fuel.

Never mind, at least I'm working in a nice car.

 

[toolman1954]

I would second the need for a good accountant, I regularly pay towards my accountants ne w Porsche, But after you have joined the " I've been Investigated Club" you appreciate the money was well spent. Remember there is no sick pay, no holiday pay, and often no pay at all, especially in this recession. Sometimes it will be very long hours, 7 day weeks and forever wondering where the next few bob is coming from. On a positive note, you can always promote yourself and give yourself a pay rise. If the weather is bad outside, you can also make an executive decision to do nothing. After being self employed for 25 years there seems little chance of me ever going back to paid employment. I wish you every success in your new venture if you can survive the recession ( "what recession") then the better times to come will be a doddle.

 

[ringway]

Working now, as usual at this time. 11.00pm to the early hours is the only time I can guarantee completing my quotations/orders/invoices/emails without the distractions of the daytime hours.

I'll be up in the morning to take the young Ringway's to school.

I like to spin every plate, this ensures all is spot-on, but it is not ideal.

Yes, I've tried the staff thing, but I can't get anyone else to work to the same standards as I do.

My business has been good to me but it has also been bad to me..

The one thing that REALLY gets my goat is those who think/say "he must be loaded, he's got his own business".

I'm not saying I'm poor but I wish those who think self that employment is a cruise would spend a week in my (I chose them) shoes. Touch'e!

Thankfully, Lugy will get some top notch advice on this community based forum.

The post by Dryce contains important fact especially point no3!

I could talk at great length (and learn) on this thread and I'm sure it'll roll on, for a while yet.

Best of Luck to the OP and let's steer him in the right direction.

 

[camerafodder]

Dryce and Ringway have said it all. Good luck, be careful.

 

[wemorgan]

I went self-employed about 3 years ago. Despite almost 6 months 'resting' last year it's still been successfull.

My only tip, leave plenty of cash in the company for unexpected quiet periods.

 

[janner]

...the job I'm working on just now will net the company £2800 for maybe 3 eight hour shifts!

Thinking like this is probably the biggest mistake people make. What you're missing is that your company had to find that job (probably spending hours unsuccessfully tendering for similar jobs), cover the rent/rates/electric/etc on their office. Pay your NI, sick pay, holiday pay. Pay VAT, legal fees, all of Gordon's stealth taxes etc..etc..
What I'm saying is that you have to remember to cover all your overheads with each job you do. Keep your overheads as low as possible to start with and don't try to just undercut the competition.

 

[manalishi]

Big change from PAYE is to remember to set aside plenty of money for the two tax payments. Ring fence it, because Sod's Law states that Jan 31st and July 31st will somehow creep up on you just when your cashflow is at its worst.

Got to plan for the inevitable - at some point a client will go bust owing you money. For me it's happened twice (£2500 and £5500). Really knocks you and it's hard to avoid getting angry and letting it eat you up.

There are some very different types of S/E though. My first stint was a freelance editor/journalist/editorial consultant. A few clients, lots of repeat business, very low overheads, no large expenses, etc. A relatively easy life (except for those two clients mentioned above). Lots of white-collar B2B S/E is like this.

Nowadays, I've downshifted and gone blue-collar B2C, running www.ampmaker.com and it's almost the exact opposite. Lots of customers, all pay up front, and I routinely cough up BIG money for parts (which means opening credit accounts, etc). Have to master a lot more business skills than that first type of S/E, and that has meant steep learning curves and lots of weekend working.

Oh - and it will bug you no end that every time there's a Budget, there's absolutely zilch in it for S/E schmucks like us. Except for more red tape.

That said, overall, the benefit of being in control of your own destiny far outweighs the many cushy aspects of being employed.

Enjoy it

 

[esox]

get to know the late payment of commercial debts legislation if working for other companies! :-(

Got any more info on this?
Mrs Esox is SE and some of the companies she works for seem to have trouble in recognising what an invoice is........

 

[renault12ts]

Big change from PAYE is to remember to set aside plenty of money for the two tax payments. Ring fence it, because Sod's Law states that Jan 31st and July 31st will somehow creep up on you just when your cashflow is at its worst.

Got to plan for the inevitable - at some point a client will go bust owing you money. For me it's happened twice (£2500 and £5500). Really knocks you and it's hard to avoid getting angry and letting it eat you up.

There are some very different types of S/E though. My first stint was a freelance editor/journalist/editorial consultant. A few clients, lots of repeat business, very low overheads, no large expenses, etc. A relatively easy life (except for those two clients mentioned above). Lots of white-collar B2B S/E is like this.

Nowadays, I've downshifted and gone blue-collar B2C, running www.ampmaker.com and it's almost the exact opposite. Lots of customers, all pay up front, and I routinely cough up BIG money for parts (which means opening credit accounts, etc). Have to master a lot more business skills than that first type of S/E, and that has meant steep learning curves and lots of weekend working.

Oh - and it will bug you no end that every time there's a Budget, there's absolutely zilch in it for S/E schmucks like us. Except for more red tape.

That said, overall, the benefit of being in control of your own destiny far outweighs the many cushy aspects of being employed.

Enjoy it

OMG Barry...lose the photo.

 

[Lugy]

Well here's my plan of attack if people are interested, I think it's good!

Firstly I'll be making my parts at work, at this point it's only going to be automotive and motorcycle parts so as not to tread on other's shoes - we manufacture components for the aerospace and electrical industries - which I hope will help further down the line. I've sorted out a couple of things to get my name around, I'm having a stand at my local race track during the Scottish Championship bike racing and a friend will be given the task of making a few kentattie.co.uk stickers which will be distibuted among some of the riders I know. I'll still be working FT.

During this time I'll look for some premises of the ideal size and begin to build up a stock of things I'll need, small lathe, Bridgeport mill, cut-off saw, flypress and sort out a lease on a CNC machine/software. When set up my weekends/evening will be spent here instead of at work.

When I get to the point of having a good workload I want to see about going PT so I still have a guaranteed income, the rest of my time will be in my workshop.

Eventually when my work verges on being overwhelming it'll be time to hang up my Zot shoes and put on the KT ones. I'll be aiming to intercept the work we subcontract at work just now and keep a great relationship with the management at work.

Now I bet there will be hundreds of variables that come and upset the process but that's the ideal way I'll progress.

Of course it'd be more ideal if I won the Euromillions tomorrow but hey!