Becoming your own boss. Help & advice required

M

Mowflow

Senior member
Glasgow
I'm currently in the very, very early stages of planning an escape. Myself and another employee have been discussing it for some time now but due to one thing or another (weddings, children being born etc etc) it's never went beyond the verbal expression of us both wishing to do it.

In the not too distant future, life is set to get a little less hectic for both of us and with the current situation at work getting worse by the day we have decided we really need to stop moaning and do something about our situation.

I believe quite a few of you lot work for yourselves or have been running your own businesses for years so was just wondering if anyone could offer advice on where to start with doing this sort of thing.
 
Just one bit of advice, the tax office is great in terms of showing you how to calculate your tax and even how to keep your books. My hairdresser, who is a bit hopeless with paperwork, even had someone sent out to her by the tax office, to help set it all up. So worth ringing them.
 
depends what sort of business you are looking at, but the one thing I'd always say is; keep hold of your assets and make them work for you.

so if you need premises - don't go swankier and more expensive than you really need to, if you're selling your time don't allow yourself to be hammered down on price early on.

and sometimes, as tempting as it is to tell your employer to f*ck off, a bit of time spent working on both sides can be beneficial....
 
What are you planning to do? If people do the same, they may have some specific tips.

I've got two general things that worked well for me:

1. Build up some money before you quit your day job - maybe by starting doing your own thing a bit outside work if you can, or just by cutting spending for a bit, whatever really. It's unlikely you'll jump from employment and immediately make the same income - even if it's only a few months, it will take some time to build up business and there'll be ups/downs. Having money aside to pay the bills etc takes a lot of the stress out of the whole experience.

2. Get an accountant. Good one should pay for themselves in your saved (thus making it billable) time and your saved tax. Takes a lot of stress away - and they are usually pretty knowledgeable on all running a business type stuff - so good to have on side when you have a question!

Also - I'm just me - but if there was a partner, I'd want some agreement in place regarding how money gets distributed, who owns business/clients, etc, what happens if one of you wants to exit, how much time you are both putting in, how you deal with it if either of you put less time in for any reason, holiday, sick pay, etc etc. It's not the most fun conversation to have - and you may feel its totally un-necessary if the guy's a mate etc. However, it's a hell of a lot easier to discuss/agree this stuff now when you are mates and can both view it rationally from both sides as a hypothetical situation than it would be in the future were something to go wrong. Should avoid either of you getting screwed over, maximise the chances of you staying mates, etc.
 
If you are going into this with someone else, get everything down in paper.... it may seem a bit harsh at the start "fun" bit of it, but will help out down the road should anything go wrong...

Where is the capital coming from to start the business (if needed)?

What is your business called?

Are you going to have a Limited company or not?

What is your route to market?

Who is doing what, and for how much?

Lots and lots to think about (and no need to answer the above, just giving some food for thought :wink: )....

When dealing with the banks etc, always good to have the business plan all set out with financials, cash flows etc and know and understand your numbers.

Good luck...

:thumbsup:
 
Am I right in thinking you're a designer like myself?

One big thing to think about I suppose is where the work is going to come from. Can you take customer or clients over from your current job? Will you have a USP that will bring custom your way from businesses that are already established and have good relationships with?

A couple of people from a design agency I worked out went there own way and setup a new business. I think the problem they found was attracting work to begin with because people were tied up with established firms who they know well but eventually through good offers and some very cheap initial jobs they got their name out their well.

Sent from my Samsung Galaxy S3 using Tapatalk.
 
Since you are in Scotland it is worth speaking to the Scottish Business Gateway http://www.bgateway.com/ If you use the Gateway I believe you can still get one years free membership to a local Chamber of Commerce which is great for networking. Depending on your sector they will advise on any grants etc which you might be eligible to apply for. If you need premises they will have access to various properties and tempting introduction rents.
 
Being technically good at your profession is not enough, to be successful you are going to need support from accountants, sales, business advisers etc

A mate of mine thought it would be a good idea to open an architects practice with a partner many years ago and ever since has struggled to maintain a hand to mouth existence. He's worked very hard for little reward, his career would have been much better and more lucrative if he had stayed working for a large practice. I don't really know why he hasn't done well, but I suspect it's down to bad business planning rather than technical deficiency.

Depends how much of a risk taker you are, personally I stuck with a large engineering company for all of my career and never found my self wanting for anything in terms of job satisfaction and rewards.
 
Mowflow said:
I'm currently in the very, very early stages of planning an escape. Myself and another employee have been discussing it for some time now but due to one thing or another (weddings, children being born etc etc) it's never went beyond the verbal expression of us both wishing to do it.

I believe quite a few of you lot work for yourselves or have been running your own businesses for years so was just wondering if anyone could offer advice on where to start with doing this sort of thing.
Click to expand...

Why do you want to go into a partnership?????????? the old saying is.... " A businesses partnership is like a marriage without sex..= no bloody good"

Don't do it OP go on your own :thumbsup: in a partnership you'll find one person will be a slacker :thumbsdown: and you'll end up dissolving the company sooner or later.

Plow your own furrow :)
 
Well, as Ste says. I'm a graphic designer working in a digital agency. I'm the creative director at my current agency which is one of the largest in our city. There is therefore no further career progression for me at my current company, nobody else I would want to work for in Glasgow and moving abroad or even London is not an option as my wife is not interested.

The career of a graphic designer is much like that of a professional footballer without all the money. You won't find many designers over the age of 40 working for anyone other than themselves. It has always been my intention and expectation to eventually work for myself. My expectations are realistic, I dare say I won't be financially better off but I will be in control of my own future rather than feeling like a passenger.

I have worked with the other person for 7 years. We have the same approach and commitment to work and i trust them fully. Being a graphic designer my forte is not really business development or client relations. Fortunately the other person is the business director at my current company. Going solo might be more ideal to some but I would probably end up like the architect above. I know what I'm good at and can be much more effective doing that.

I appreciate the advice so far. We'll look into business gateway.
 
The first thing that sprang to mind in your original post were your comments on leaving it until your life is less hectic. It made me think going it alone may not be for you. My life has always been hectic due to the amount of things I do but that didn't stop me from following my dream and building up a successful business over the last 20 years.
Secondly I agree with the other comments, go solo, I almost went the partnership route with a long established friend thinking stress, finances and workload would be shared, but after seeing many businesses fail around me and the key issue was the partnership agreement failed I'm glad I didn't. If you are keen to work with this colleague, why not just employ them? It may cost you in the short term but if successful you'll be glad you did.
 
Mowflow said:
Well, as Ste says. I'm a graphic designer working in a digital agency. I'm the creative director at my current agency which is one of the largest in our city. There is therefore no further career progression for me at my current company, nobody else I would want to work for in Glasgow and moving abroad or even London is not an option as my wife is not interested.

The career of a graphic designer is much like that of a professional footballer without all the money. You won't find many designers over the age of 40 working for anyone other than themselves. It has always been my intention and expectation to eventually work for myself. My expectations are realistic, I dare say I won't be financially better off but I will be in control of my own future rather than feeling like a passenger.

I have worked with the other person for 7 years. We have the same approach and commitment to work and i trust them fully. Being a graphic designer my forte is not really business development or client relations. Fortunately the other person is the business director at my current company. Going solo might be more ideal to some but I would probably end up like the architect above. I know what I'm good at and can be much more effective doing that.

I appreciate the advice so far. We'll look into business gateway.
Click to expand...

Similar background to me, except I'm on the tech side not the design side (so if your new enterprise needs a freelance developer from time to time to turn your no doubt stunning designs into reality... 8) ). From my experience, I wonder whether the balance would be a bit out with the split of skills you are proposing? In my experience in the digital agency world, designers/developers tend to do most of the billable work, a team of them would be supported by a smaller number of account/project/business manager types with a smaller proportion of directly billable hours. Would a balance of 1:1 between the two sides work - would just you create enough work for the other guy? I'm not saying it won't work, there's different approaches to it all, and there are plenty who can sell strategy, marketing, search and other related services to keep busy and keep the cash flowing - just struck me as a little unusual - one to think about.
 
Less hectic. You must be kidding. Going it alone is the hardest thing you'll ever do. Did it 15 years ago and left all the harshness of corporate life (holidays, pensions, cars, health care, free everything you need, etc.) I now work twice as hard, but enjoy it.

Def no partnership unless it's very clear and one has greater ownership. Been there, done that and dissolved it after stagnation of a 50:50 separate company.

I won't duplicate advice above but some extra comments:

Alone is best or you need twice the turnover and more clients. You may both end up poor
Choose sole, limited or partnershiop carefully. Get proper business advicor not just accountancy
Watch your old employer coming after you if you leverage their clients, data, ip, etc.
Prepare to not just do your job, but marketing, selling, debt chasing, office set up, etc.
Allocate to pay pensions, lean periods, accounting costs, bad debts, etc. etc.

If you really really want it, not just an escape and see your market and niche go with it. If not then stay in a company.
 
Phil, I couldn't have said it better, ^^^^^ you are spot on. Apart from time off and holidays, they will be far fewer than what you get as an employee.
 
Well I'm glad others agree with me on the solo route, I started building our group in the very early 1970's and have seen many companies fail because of bitterness between two partners, I've even known two brothers that could not have been closer going into a partnership and it ended about 5 years later very acrimoniously and they don't speak now!

A business partnership just erodes friendship, another thing that doesn't help are the partners wife's, they are usually concerned that the other partner isn't pulling his weight/obtaining more benefits then her husband and all this doesn't help the situation because of course every husband wants to keep his wife happy? and I've known this to be the start of many disagreements between lots of partners.

Also where there are more than two partners the situation is even worse!

It's better to have 100% of something than 50%

Best of luck OP :)
 
Carol M said:
Phil, I couldn't have said it better, ^^^^^ you are spot on. Apart from time off and holidays, they will be far fewer than what you get as an employee.
Click to expand...


Thanks :)
Without doubt holidays are different. When taken they cost money through lost earning time and when you do take them you still work (laptop, iphone, etc. always to hand).

Of course you can surf forums with greater freedom and drop off the work radar whenever you want :)


Kryton - spot on. 50:50 can be a recipe for total disaster. Things that people don't even consider and maybe are trivial generate great acrimony over time.

One partner wants new laptops the other wants to save money.
What's expensed as legitimate?
Role and responsibilities
Stagnated decisions

I was 50:50 in a separate venture that went nowhere and made nothing. I wanted to cease trading and my partner wanted to keep it trading and hold the brand name. We couldn't even agree who had to pay who what if it closed or continued. Don't recall us speaking in the last 5 years...
 
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