Having bombed out of another job I’m ostensibly well-qualified for (in experience and qualifications) but which I didn’t feel the right fit for from day 1, I’m beginning to feel unemployable for most of the jobs my CV would suggest to an employer they should offer me.

Self-employment is becoming an increasingly attractive option. I’ve 15 years of marketing experience so I’m happy I could sell myself and have no problem with hard work, and I can be very determined and focussed when the challenge is right; but other than the obvious thing about what my business would do, I’ve no real experience of being self-employed other than a stint as freelance which I rather enjoyed (not least the freedom from politics and ability to just focus on getting the job done.)

So anyone got insight into the reality of self-employment? Good and bad…

It’s great right up until you run out of work and realise that only you can solve that issue.

It’s genuinely easy – things that you can’t or don’t want to do outsource – accounting, tax and stuff to concentrate on your core business. They are distractions, while understanding them is crucial i have always got someone else to do it for me.

Plan, plan, plan and plan more. Get a funnel of work lined up. When it’s quiet get out there and get more work, when it’s busy get out there and get more work for when it becomes quiet again.

Accept that you are taking a risk and that you might not succeed. That’s not failing, failing is when you don’t even bother to try.

I’ve started up and now sold 2 businesses. I’ve done my dash but work with startups to get them going. Some will never but some do. I buy shares in those ones !!

Good luck.

A few things, but by no means everything:

Pros – lower taxes, able to claim a lot of expenses to further mitigate tax liability.

Cons – lots more paperwork, a monthly pay cheque is not a given – you make all your own income. No holiday pay or sick pay and going sick is never an option.

If it all goes tits up, you won’t be eligible for contributory jobseelers allowance.

Been doing it for 18 months now and love it. Wouldn’t go back to being employed.

I can get the work/life balance i want and earn what i want/need to rather than making someone else money which they pay me a small % of as a wage.

It’s not for everyone and i find myself on call to clients via the mobile most of the time but its a small price to pay in my book.

Get a good accountant to do your tax returns and set things up with the revenue for you if you’re not confident doing it yourself and away you go. Just make sure you put a % aside whenever you get a cheque from a client for your tax bill.

Good luck

be prepared to work every hour you are awake!
Sometimes it can screw the work life balance thing as you need to make hay when the sun shines.
But I don’t think I would change it as in theory you’ve got all the flexibility you want.

Providing a service is the safest, if you don’t get paid it’s just time lost.
Providing actuall good as well is different, don’t get paid you loose the goods and have to pay for them, i.e in my case reccession killed several of my customers and left me with a 98k bill to pay out of my own pocket.

Still wouldn’t go back to employment though….comeback kid me.

No sick pay, but strangely you never ever get sick when your self employed.
Holidays are awkward as in if youre not there, youre clients often go elsewhere.
It certainly affects your riding knowing an injury could mean the mortgage doesn’t get paid.
Friday evening is about the only time I can let my guard down.

The first time I went self-employed I did business plans, accountancy forecast plans, planned my set-up, forecast incomes, yadda yadda. Failed dismally (it was 1991). It took me over a decade of ‘proper jobs’ to pay for that.

This time round, I didn’t really plan other than to work out how much I needed to earn to pay the mortgage and the bills. Three years later, still busy busy busy.

Other than that, exact echo of what Oldgit says.

Second month in as a freelance/self-employed graphic designer and starting to enjoy it.

I’ve been careful with startup costs, but with a bit of capital have managed to keep it going and turn the venture into a profit making business already. There is a lot of work out there for small guys like us, so go and clean up!

If you’re good at what you do and enjoy it (and can afford the risk) go for it – but prepare for work; March for me consisted of 12 hour days and 6 day weeks, and I can’t remember the last time I rode my bike! But compared to 4 years ago when I’d spend a good few hours a day on here wasting time I’m much, much happier.

If you’re worried about about how you’ll make it happen, just keep your eye on your ideal work/life balance and it will work out. I’ve no business experience, but being sensible about purchases, amount of clients and time dedicated to the studio (and being aware of my partner’s lonely evenings…) has meant it has run quite smoothly.

And this post about being self employed wouldn’t be complete without a nice, big link back to my site.
Vickers Creative – Glasgow Graphic Design

Have a network of problem solvers.

🙂

It’s a bit different for me, as I have a trade, however…

Having a background in Contract Management gave me some useful experience on the commercial side of things and also dealing with clients etc. If I were to give just one piece of advice, it would be to keep on top of your paperwork – it can mount up very quickly.

If you are going to be turning over more than around £68,500.00 (I would have to check current exact amount) in any 12 month rolling period (i.e. every day is the start of a new 12 months if that makes sense)you will have to register for VAT – however, you only have to do this when you hit the threshold figure and even then if you can demonstrate that your turnover will reduce, then you can remain exempt.

However, don’t be afraid of VAT – it’s a bit more paperwork, but nothing majorly different to your normal book keeping and filing a return is very simple (much easier than a Self Assessment) – it has to be done quarterly. Even if you won’t be turning over the amount that triggers it, I’d recommend it if all/the majority of your customers are VAT registered. If you’re providing materials it will make you more competetive and it will also save you 20% on anything you buy for/put through your business.

If you are going to be exposed to your clients for large amounts of money – i.e. you will be hiring subby’s, buying services, or materials to sell on, then look at becoming Limited, as this will shift the exposure from you (and your property) to the business.

For me self employment has been a breath of fresh air and I’d have to be pretty desperate to go back to full employment again.

From my own personal experiences….

Pro’s

Less/no stress
Not stuck in an office
Drive what car/gas guzzling 4×4 I want to
Back on the tools, but enjoying it far more than management
Got 2 holidays booked this year and planning a further 2
When I finish, I can switch off if I want to, or choose to do some paperwork – but it’s my choice
More respect from the clients
Currently invoicing around £8k per month labour only – overheads, digs & fuel to come out of that though

Con’s

Working away from home (although I was travelling to my old job and out of the house for up to 14hrs a day)
Re: above – now got a nice caravan to stay in, which will be used by the family too
Can’t remember the last time I rode my bike
Just dragged a load of cash in that’s been outstanding since before Christmas – along with other outstanding amounts was down to the bare bones of £10k’s worth of overdraft facilities – and the VAT man doesn’t wait for his cash.
No holiday or sick pay, but the decent rates cover that

Overall I’m 100x happier than I was 18 months ago