Just wanted to know how hard it is to actually get going with finding clients, earning money getting established. What to expect in your first year and after a couple of years. Any regrets? Do you recommend it. I suppose I want an idea of what to expect and if it is worth taking the plunge.
Sorry, I hope all that makes sense.
Excited but nervous.
I started my own business last April but was lucky enough to already have 3 or 4 clients lined up which really helped, I did not want to rush into anything and decided to set myself a goal of obtaining a certain amount of clients over a certain period of time which I am happy to say that just over a year from starting out has so far gone to plan.
I want to grow my business slowly so that I do not only gain more clients but also the knowledge and experience to deal with them, the one thing I think is needed when starting out is confidence not only in setting up and going it alone but also in your own ability when dealing with clients, also being able to turn work away if you feel that you can not offer the service and expertise that is required.
Its a bit hard to advise what to expect in your first year as I am sure every new business is different
I am certainly glad that I "took the plunge" and wish you every success if you decide to do so as well
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Hi Linda
Along with Doug's question, do you work in industry or for a practice?
A lot depends on what it is you are planning to offer - is it actually bookkeeping or Accountancy? Where do you stop/can you offer the tax advice clients need and how do you differentiate yourself from the seemingly endless stream of cheap bookkeepers launching themselves on to the market. I would say - if you are earning a good wage then perhaps look for something similar that pays you more. Earning an really excellent living in this game requires long long hours, Chartered status, some niche or add on services that you can provide. Im not saying you cannot earn a living by not having such, but there are limits to the income unless you do.
Doug is absolutely spot on when he says that slow growth is the key - you never know from one day to the next what clients will throw at you and must build in time for self study to bolster that existing knowledge to be able to satisfactorily deal with the thing they have just thrown into the melting pot of chaos that is often involved in sorting out their finances. CPD is constant and finding time to do it is increasingly difficult more more important as your profolio expands and is crucial in this time of some huge changes that are afoot with Making Tax Digital, the next stages of IR35 rollout and Brexit on the horizon.
Everyone thinks working for yourself is easy. It absolutely isnt but I wouldnt go back to working for someone else now.
Maybe try running a couple of clients in your spare time alongside your existing job - that will help you decide if you want to grow your business, or stay in employment.
What plans have you for services/working up to or beyond TB, what type of clients, software?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
The company is in Industry, it was only small and has grown over the years. I came in as a accounts admin, put myself through college studying AAT and payroll. My current position is Accounts Manager with 3 staff. I use Sage Line 50 accounts, IRIS payroll and excel. I manage the money, credit control, make payments, reconcile the banks, provide cash flow forecasts and management figures. Analysis costs for each department. At the end of the year our Chartered accountants come in audit the books and they produce the final set of accounts. My current salary is £23500.00. How does that compare to working for yourself? Money is not everything, it does help but I want to feel challenged and happy in doing something for myself.
I feel bored and have done for the last 2 years. I cannot progress any further where I am, no pay rise for over 2 years and just feel I have lost my enthusiasm for the job and company.
My husband had his own business so I do understand that it will be very hard, he has a lot of good and bad experience that he can also share with me.
I want to offer bookkeeping and payroll to start off with and build it slowly once I gain confidence and experience.
I will follow your advise about keeping my job and try getting some clients on the side. I have 1 possible new company that is just starting up.
Thank you to both of you, you have given me things to think about and look in to. I really appreciate it.
Sounds like you're almost there. Have you thought about the ATT qualification to bring your tax knowledge up to spec? Yes, you can earn much less than you do now, or three times more.
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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.
Thats a good question Johnny, certainly one worth doing as the AAT doesnt cover such in nearly enough detail for the level of questions you get.
On the comparative salary thing Linda -the phrase how long is a piece of string comes to mind? Everyone is different. Ive seen some offer their services for so little that they could no way earn such even working all the hours and building in no down time for CPD, your own admin, travelling to clients premises (if not charged out) etc. So the rate you charge for each piece of work is key, but is just one factor. The other is do you fill your time doing bookkeeping or are you just doing final accounts - both can have differing charge out rates, but focus on one without the other means you could have very busy spells and then almost dormant ones for quite some time.
With your background and the qualification under your belt I would seriously consider the employed route via somewhere else, where there is potential for progression and pay rises and of course plenty of job satisfaction, as well as the self employed option. Its worth keeping your options open at this stage.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I started in 2009 with one client, who asked me to his books following a chance conversation in which I mentioned I'd done bookkeeping and payroll previously. I was then asked to do the books for a cafe following recommendation from a friend so I decided to start as a part time business, and it's grown from there.
-- Edited by Leger on Sunday 11th of June 2017 07:38:15 PM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
