Going it alone

[The Cowboy]

Just reading this article on BBC - http://www.bbc.co.uk/news/business-30897077 - and it got me wondering if anyone on here has taken the leap into self-employment, and if it succeeded or failed?

I've always harboured ambitions of taking the plunge and going it alone, but have yet come up with a viable business idea, and even less so the ability to fund it.

If you could, what would you do? <opening the floodgates with this question, I fear>

 

[GrandOldTeam]

I did it a couple of years back.

Fortunately, so far so good.

In an ideal world, the idea/concept would be the initial prompt into self employment.

 

[The Cowboy]

I did it a couple of years back.

Fortunately, so far so good.

In an ideal world, the idea/concept would be the initial prompt into self employment.

Watching Dragons Den recently, and I really don't like the line of questioning the dragons seem to adopt all the time these days, which is basically 'what's stopping <big company already in the same business sphere> doing this themselves tomorrow?' or 'What's to stop someone else nicking your idea and doing it too?' which I find incredibly counter-productive.

The idea is to encourage entrepreneurs (I think) yet the message they seem to send out is 'Don't bother, Tesco will just do it themselves for a fraction of the price when they see your product'. They're putting people off taking the plunge, as they might just get crushed by big companies within a year.

 

[Reidy's Bottle Of Grecian]

Not always the bed of Roses that people perceive, some folk think that if you're self employed then you're instantly loaded.

The reality for me is that I have to be on call 24/7 & still don't exactly make a living out of it, in fact if I didnt have kids and there weren't tax credits then I'd be up a creek.

A fella said to me years ago (whilst watching the cup final v Chelsea in Spain) that Self-Employment when you have kids is like 'the new signing on' & that loads who were unemployed had self employment pushed at them by the job centres, no real proof of how many hours you are working required by tax credits & better off financially than signing on.

I'm currently looking for a job cos had enough of 'bumbling along,' no holiday pay... every year we go an as cheap a holiday as we can but then for months after I'm trying to get my account back on track to cover the bills.

In my case, when i look at it in the long term it hasnt exactly been a success, but guys I used to work with (skilled) have been in & out of employment during that time whilst having to work mad shifts, work away etc and are no better off, so in that way it has been a success.


It was touted on here once that any small business well be making a profit of over 100k .... as you know, some on here have absolutely no touch with reality.

 

[Reidy's Bottle Of Grecian]

Watching Dragons Den recently, and I really don't like the line of questioning the dragons seem to adopt all the time these days, which is basically 'what's stopping <big company already in the same business sphere> doing this themselves tomorrow?' or 'What's to stop someone else nicking your idea and doing it too?' which I find incredibly counter-productive.

The idea is to encourage entrepreneurs (I think) yet the message they seem to send out is 'Don't bother, Tesco will just do it themselves for a fraction of the price when they see your product'. They're putting people off taking the plunge, as they might just get crushed by big companies within a year.

anything technology based would require constant investment, with any tech bought being virtually worthless down the line, and with the speed that things advance nowadays the distance down the line is getting shorter.

 

[Bruce Wayne]

I'm doing it at the moment, and I suppose it depends what you regard as success. I'm fairly sure I could probably earn more money in a corporate environment, but I'm also fairly confident that it wouldn't make me as happy as what I do now. As Reidy says though, that's something that's a lot easier to say when you don't have children. I'd imagine they change things quite a bit.

 

[The Esk]

Watching Dragons Den recently, and I really don't like the line of questioning the dragons seem to adopt all the time these days, which is basically 'what's stopping <big company already in the same business sphere> doing this themselves tomorrow?' or 'What's to stop someone else nicking your idea and doing it too?' which I find incredibly counter-productive.

The idea is to encourage entrepreneurs (I think) yet the message they seem to send out is 'Don't bother, Tesco will just do it themselves for a fraction of the price when they see your product'. They're putting people off taking the plunge, as they might just get crushed by big companies within a year.

To be fair, I think they are legitimate questions to ask when investing cash in someone else's business, as as soon as you have a product or service which is successful and is recognised by other companies they will try and enter the market, either to grow the market or to take your business.

The point that is missed though is that there are thousands of successful small to medium sized businesses that do survive and beat bigger competition either through superior products or more usually superior service and relationships with their customers. Assuming you do not have a unique product or service to offer and you can operate profitably at a sensible price point, the service levels and relationships you build with your clients are the key to business success.

To start a business from scratch is tough, but enormously rewarding. I would say you have to chose something you are exceptionally good at or have great knowledge, and/or have a huge passion for. Passion is the key though for me, without it you can not hope to succeed.

So start from this point - what are you good at? what are you passionate about?

Is there a business opportunity in those areas?

If so build a business plan - there's good information on The Prince's Trust website

http://www.princes-trust.org.uk/nee...t/business_plans/business_plan_templates.aspx

Other questions you need to consider:

What funding is required? Where will I get it from?

How can I pay my personal bills/feed the family/pay the mortgage in the early months?

Do I have the support of my family, particularly wife/husband/partner?

If you really want to do it, then do it. I've met many people over the years who say they want to start a business but years later still have not - for a multitude of reasons, some not their fault of course. Often people say it's not the right time, or this is wrong, the economy is bad etc etc. If you wait for perfect operating conditions then it will never happen.

It's not easy and there is no guarantee of success, however if you have the skills, funding and passion then it usually works and is far more rewarding in every sense than working for someone else.

 

[royalblue66]

Was in the contractors plant hire biz,started up against an established company and had some plant nicked,this detective came along and after taking the details, he said "
this is what happens when you go up against the big boys" I said "well it beats working for someone wearing a peaked cap, and don't forget to close the door on your way out"
I did o k long term,always gave him a wave, when I saw him. Plod.

 

[The Esk]

Not always the bed of Roses that people perceive, some folk think that if you're self employed then you're instantly loaded.

Lot's of self employed people really struggle to make the shift from being employed to earning your own living as someone self employed (I am not saying you Reidy, I'm sure that's not the case)

When I first started out, I left a huge American company that I could have stayed at for the rest of my life without doubt. However I did not view myself as self employed. I set up a Company and became employed by the Company. My job was to grow the Company and from that growth I would get paid a salary or dividends (as I was the only shareholder). That really focused me, because actually my employment status had not changed - however I was totally responsible (as the sole employee) at that time for the success or failure of the business.

The difference is subtle yet it allowed me to seperate myself from my business in a way that self-employed people often do not. The issues were identical of course, offering a product or service and selling it, but that strategy worked for me.

 

[The Cowboy]

To be fair, I think they are legitimate questions to ask when investing cash in someone else's business, as as soon as you have a product or service which is successful and is recognised by other companies they will try and enter the market, either to grow the market or to take your business.

The point that is missed though is that there are thousands of successful small to medium sized businesses that do survive and beat bigger competition either through superior products or more usually superior service and relationships with their customers. Assuming you do not have a unique product or service to offer and you can operate profitably at a sensible price point, the service levels and relationships you build with your clients are the key to business success.

To start a business from scratch is tough, but enormously rewarding. I would say you have to chose something you are exceptionally good at or have great knowledge, and/or have a huge passion for. Passion is the key though for me, without it you can not hope to succeed.

So start from this point - what are you good at? what are you passionate about?

Is there a business opportunity in those areas?

If so build a business plan - there's good information on The Prince's Trust website

http://www.princes-trust.org.uk/nee...t/business_plans/business_plan_templates.aspx

Other questions you need to consider:

What funding is required? Where will I get it from?

How can I pay my personal bills/feed the family/pay the mortgage in the early months?

Do I have the support of my family, particularly wife/husband/partner?

If you really want to do it, then do it. I've met many people over the years who say they want to start a business but years later still have not - for a multitude of reasons, some not their fault of course. Often people say it's not the right time, or this is wrong, the economy is bad etc etc. If you wait for perfect operating conditions then it will never happen.

It's not easy and there is no guarantee of success, however if you have the skills, funding and passion then it usually works and is far more rewarding in every sense than working for someone else.

Good stuff. To be frank, I am in no position whatsoever to be considering self-employment. My present occupation would not provide me with a skill base that I go self-employed, and I have a family to support. I suppose I envy those like the lad in the article, who took the plunge and it paid off. I suspect I'll never be self-employed, to be honest.

 

[sageyefc]

No risk no reward and all that.


Only thing id say is have a bit saved up as a buffer and if possible maybe start off doing it alongside your day job so you have a guaranteed pay check coming in

 

[steken1]

I did it a few years back. I underestimated the amount of money required and ultimately there was no going back. Cost me a lot of money and sent me into the most dark/challenging period of my life. Took me until just recently to right myself.

My advice would be, if possible, do something with low overheads and were the business revolves around you.

 

[The Esk]

I did it a few years back. I underestimated the amount of money required and ultimately there was no going back. Cost me a lot of money and sent me into the most dark/challenging period of my life. Took me until just recently to right myself.

My advice would be, if possible, do something with low overheads and were the business revolves around you.

Good that you have come through it mate.

One thing to note, of course, you can write as many business plans as you like, but the financial outcome will be nothing like anything you have written - it will either be substantially better or worse, you have to build much larger contingencies than you ever think. However they remain useful as a planning tool in the early days.

 

[steken1]

Good that you have come through it mate.

One thing to note, of course, you can write as many business plans as you like, but the financial outcome will be nothing like anything you have written - it will either be substantially better or worse, you have to build much larger contingencies than you ever think. However they remain useful as a planning tool in the early days.

Sage advice.

 

[BigFatLiar]

Done it in 2010 and more recently last September (due to a being shafted by a business partner), depends on your background but if you have clients that will move with you then you are onto a winner.