Starting up as self employed - how easy is it? - The Book-keepers Forum (UK)

Holly · Newbie

Starting up as self employed - how easy is it?

kjmcculloch · Guru

Hi Holly,

There's always room for one more. For me the key is to differentiate your self from the competition. Look at what they're doing and do the opposite. In a crowded market place you need to stand out rather than blend in.

Regarding how hard it is to set up, very. I find it a constant struggle. A balance between dealing with clients, marketing my service and continuing my own development. Learning the bookkeeping is the easy bit, and so is keeping clients happy to an extent. It's finding new clients that's not so easy. And as we've heard from Amanda this week even when someone does contact you, you can spend a lot of time working on something that comes to nothing.

With regards to working part time while you start up, there's two schools of thought. The first says that it provides a buffer until you get established, which can be a long time. The second says that if you are relying on your own business to put food on the table you'll make it work, you'll do everything you can even when you don't like it because you need to.

I'm sure others will pitch in with their views, but hopefully this gives you something to think about.

Kris

kjmcculloch · Guru

Oh, missed a bit of your post.

Advertising is a question that is asked often. Have a quick search you'll find loads of ideas.

Self Assessment... As far as I'm concerned an additional service is an additional income stream. Set up as many of these as possible, you'll need them.

Alfred · Senior Member

Hi Kris

As you are already established you saying that surviving only on bookkeeping work is not possible?

kjmcculloch · Guru

Hi Alfred,

I am fairly established now, been going just over a year now.

I'm not saying that surviving on only bookkeeping work isn't possible, but I am saying it can be very, very difficult. Like any business the more strings you have to your bow the easier it is to turn a profit.

I am earning money now, but it's no where near what I was earning when I was employed. Don't get me wrong, that suits me as I have two small children (1 and 3) and working part time from my garden is ideal for me. I just think that people entering the market should have all the information they need to make a rational decision for themselves. We all know that HLC are telling people if they do the ICB levels 1 and 2 they can be earning £2000 a month. Personally I feel having these expectations is unreasonable, but many do.

For me the most difficult thing about running my business isn't dealing with clients, or the actual bookkeeping. It's the constant need to be marketing myself.

Really what I am saying is that if you enter with your eyes open and realistic goals bookkeeping can be good, but if you think you'll have your books filled within a couple of months I think you're kidding yourself.

Kris

Alfred · Senior Member

So how many clients do you have, or how many would you say is enough roughly to turn a profit from

kjmcculloch · Guru

Profit is one thing. I dare say you could turn a profit on one client. It's being able to live on the profit. The number of clients required is always going to be difficult as people charge such varying rates and clients needs are very diverse.

Personally, I think that somewhere between 30 and 40 monthly clients is my ideal area, unless I take on additional staff.

But if you can offer more than simply bookkeeping you can turn a profit without eating into your time. For example, we all come across people who don't want their bookkeeping done for them, they are happy to do it themselves. How do we turn a profit from these people? Why not sell them some kind of software to do it. You can easily turn a small profit of say, £10 per month for no work at all.

Kris

Alfred · Senior Member

Thanks Kris suppose it's best to always try and and make a profit from anyone that contacts you

kjmcculloch · Guru

I think thats the fatal flaw Alfred, "If you build it, they will come" just isn't true in our profession. You need to to in search of clients, not just hope the phone rings... It won't

Kris

Heidi Lawrence · Newbie

Where are you based, Holly? I am keen to find good, reliable people for my bookkeeping business; part-time initially, but increasing as I take on new clients.

Donna CBK · Senior Member

Hi Holly, if you want to drop an email with your details I need bookkeepers now and again - info@completebookkeeping.co.uk. Further details on experience and postal area willing to work would help.
Donna

Hana88 · Member

Hi all,

I am also new to the forum like Holly and thinking of starting up self employed, which is how I have stumbled across his forum!
I wondered if anyone could give me some advice as to whether I need to have certain things in place before setting up (e.g. register with an awarding body / insurance, etc) or can I just start advertising for work?

Regards,
Hannah

Wella · Expert

Hi Hannah, and welcome

There are quite a few things needed to be done prior to starting.

It is not necessary to be a member of an awarding body but if you are going that route, do that first. If they offer a Practice Licence get that as it will usually also cover you for Money Laundering Regulations supervision and make it cheaper (or offer deals) on Professional Indemnity Insurance.

If you dont go with a recognised awarding body, you will need to register with HM Revenue & Customs for Money Laundering Regulations supervision. You will also need to inform them straight away that you are self employed.

Bill

Hana88 · Member

Thank you for your help Bill, I'll get right onto it!

Many Thanks,

Hannah

Sangeetha · Member

Heidi
I have just completed ICB level2, and takig level 3 by the end of the month. I am looking to do Bookkeeping initially for part time. If u have any vacancy, I can send you my CV.Iam based in Woking (Surrey)!

AccessFP · Newbie

Hi Holly,

Whilst we would stress from the start that we do not offer any promises in respect of winning new client fees, we are currently undergoing a big UK wide drive for new partners.

AccessFP is looking for qualified and ambitious bookkeepers looking for a new opportunity, the chance to become their own boss and join a solid network of finance professionals working alongside small and fast-growth business owners.

If you seek independence and the chance to build, or extend your own client portfolio then please do get in touch!

AccessFP

HendyPhilhendy · Guru

Starting out in any business is never easy.

As is mentioned above getting clients is the tricky part. I often see a key barrier in the initial phase is dealing with clients. You don't want to tell them you are inexperienced but also you need the work. Be careful not to undersell yourself. You might get lots of work at a cheap fee but won't be making much money!

Coming here is the right place as you will get lots of little tips in how to establish yourself.

stripe · Member

I'm looking at starting out as self employed bookkeeper - as opposed to self employed accountant. I don't want to deal with the higher end stuff such as submitting tax returns [ok with VAT and CIS - easy as!]. Found this forum yesterday - plugging though all the posts and looking, looking, looking for hints, tips and gotcha's!