Hey guys.
Is it possible to build a business based upon acting purely for sole traders?
Is it possible to earn in excess of £20k net?
Providing bookkeeping and tax work.
I don't think £20k is a ridiculous number.
Of course I don't expect revenue of this amount over night!
Based upon the logic of fixed rates, How many clients, as an average would a business need to turn over this amount of revenue?
Thanks
__________________
Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
It absolutely is. That's exactly what I do right now. When I made the decision others I spoke to seemed to think it was a silly thing to do, but I've had some really good success since taking the leap. I'm more specific than just sole traders though, I have 4 niches within this too.
Clearly the amount you earn and the number of clients needed to get there will vary, but £20,000 is a very achievable figure if you are committed. I average £30 per hour. My average fee is £70 per month.
Hi Kris
Thats excellent to hear.
Imo I think it makes perfect business sense to specialise in a sense to a section of the market, as an oppose to attempting to net every business within a 20 mile radius.
Do you work many hours a week?
A £30 average is very fair, considering all which is involved.
Did your business strategy take much in the way of time to lift off proper? If say making your net profit equal to 40, 45 hours of minimum wage?
Thanks
__________________
Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
It's only been in the last year that I've concentrated on this particular niche. I work about 15 hours per week on billable work and another 10 on marketing and business management stuff. I share the childcare of my two boys with my partner. The reason I became self employed was to get a better work-life balance so it works for me.
I have a lot of sole traders on my books, most of them are under the vat threshold and are not wanting monthly bookkeeping jus the year end accounts and tax returns. They tend to be cis subcontractors (lots of those), driving instructors (I have about 6 or 7 of those), gardeners (Again 6 or 7 of those), hair dressers, make up artist, martial arts instructor, a couple of dancers, an actor and even a model (I charge her less!). Most of these I charge around £200 to £300 including vat for doing the compliance stuff and accounts. I have a few couriers who are sole traders and they need their vat doing so I tend to charge around £50 per month. The majority of our bookkeeping fees definitely come from companies though. Having said that I do well over £20k on my sole traders and I like them. They don't tend to be too difficult, their work is less complicated and the hourly rate can be great, knocking out some of these guys takes an hour or two!
Kris, I'm interested that you can charge £70 per month, are these guys all vat registered? I know driving instructors are one of your niches, the highest I charge a driving instructor is £285 plus vat, the lowest around £145! There's obviously more money in Scotland than in Coventry!
I have gone the other way recently and do more Ltd companies than Sole traders. I don't do the tax stuff at the end as I am only a bookkeeper, but gradually the Sole traders are becoming less and I am get more meatier work with Ltd companies.
Personally I'm not fussed about the small Sole traders and don't go looking for the work. I am preferring Ltd's because of the value that you can add to their businesses.
This is just a personal preference.
PS God I am sounding like Bob saying I like to 'add value' to their businesses!
-- Edited by Amanda on Tuesday 22nd of July 2014 11:14:28 AM
£70 per month is the average. Some are up around the £120-130 mark. In fairness this is generally reserved for retailers and can include payroll too. My driving instructors all pay the same, £20 per month. I make a fair bit from my construction guys in invoicing and credit control work. I don't think that there's more money to go round here, I think it's just how you package things up.
I hate to use anything Bob-like either Amanda, but it comes down to adding value.
our driving instructors are quite similar then, do you actually do monthly bookkeeping for them or is just once a year but you get the payments in advance? I must admit I'm not a massive fan of retailers, always takes more time and can be a bit messy, or at least the couple of corner shops I used to do were, easier I guess with higher ticket type shops.
I agree Amanda that there is usually more bookkeeping with a company, they tend to need their vat and payroll doing so there is more of a regular input.
I do monthly bookkeeping for them, and they get a monthly report showing some key figures and statistics as well as a tax and ni liability forecasts.
Most of my retailers are pretty straight forward, but it keeps my hand in and they are all VAT registered. My only VAT registered clients right now are retailers.
