Own business...is it worth it??
Discussion
I have been dreaming for many years, that I would one day want to run my own business, to be my own boss, to be able to decide what I will or wont do that day knowing that the decision I make will have an effect on the company.
However, only one thing concerns me, and it is something that has caused 3 firms run by members of my own family fail, something that caused the firm I used to work for have to make major staff cutbacks, and cause endless numbers of small businesses fail.
And that is a client NOT paying you.
How do u make someone payup, if it means the difference between your company staying afloat and going under, surely its illegal for them not to pay you?!
However, only one thing concerns me, and it is something that has caused 3 firms run by members of my own family fail, something that caused the firm I used to work for have to make major staff cutbacks, and cause endless numbers of small businesses fail.
And that is a client NOT paying you.
How do u make someone payup, if it means the difference between your company staying afloat and going under, surely its illegal for them not to pay you?!
I have been running my own business now for over 7 years and it has proved to be the best time of my life.
Briefly having started in my bedroom with a knackered old computer a new product range to me, my company now currently employs five staff including myself and last year we turned over 1.2m.
You are right to be concerned whether you are going to be paid and without doubt in the early days I have taken risks that may have ended in tears. But to date through gut feeling keeping a track on the sales ledger and when we were able to, having strict - "payment in advance on first order" along with good T & C's we have only had two bad debts since the business began. OK, one of them was last week for 11.5k which is a real pain, but now we have a healthly balance sheet it's annoying and simply a niggle which I'll work through.
Bear in mind that there are a lot of businesses out there who will try and shaft you. Of course you are obliged to be paid and of course if someone doesn't pay you can take them to court. In practice this appears to be very time consuming and more often than not in the case of a small bad debt (up to several thousand pounds) a real pain in the arse. The whole event usually takes 6 or more months and is just plain difficult. No matter how cut and dry the order was, it amazes me how often the criminal gets away with it!
So if you can find that product that allows you to start your business and you business plan stacks up (although I have never had one!) then go for it. Never release goods unless you are paid in advance, if you offer credit make sure you keep your eye on the ball.
What a lot of non business owners don't realise is that unless you're very lucky, running your own business is bloody hard work and is a constant battle which doesn't get any easier the larger you get. Paying the PAYE and VAT is a priority and also building a relationships with customers, suppliers and of course your bank manager is essential. Since starting the business I have never paid one penny in bank charges and I don't intend to. I started with literally nothing and have never gone overdrawn or used my overdraft (even though now I have a 25k UNSECURED one available!).
Don't forget, running your own business is the best game in the world so long as you are winning...
Briefly having started in my bedroom with a knackered old computer a new product range to me, my company now currently employs five staff including myself and last year we turned over 1.2m.
You are right to be concerned whether you are going to be paid and without doubt in the early days I have taken risks that may have ended in tears. But to date through gut feeling keeping a track on the sales ledger and when we were able to, having strict - "payment in advance on first order" along with good T & C's we have only had two bad debts since the business began. OK, one of them was last week for 11.5k which is a real pain, but now we have a healthly balance sheet it's annoying and simply a niggle which I'll work through.
Bear in mind that there are a lot of businesses out there who will try and shaft you. Of course you are obliged to be paid and of course if someone doesn't pay you can take them to court. In practice this appears to be very time consuming and more often than not in the case of a small bad debt (up to several thousand pounds) a real pain in the arse. The whole event usually takes 6 or more months and is just plain difficult. No matter how cut and dry the order was, it amazes me how often the criminal gets away with it!
So if you can find that product that allows you to start your business and you business plan stacks up (although I have never had one!) then go for it. Never release goods unless you are paid in advance, if you offer credit make sure you keep your eye on the ball.
What a lot of non business owners don't realise is that unless you're very lucky, running your own business is bloody hard work and is a constant battle which doesn't get any easier the larger you get. Paying the PAYE and VAT is a priority and also building a relationships with customers, suppliers and of course your bank manager is essential. Since starting the business I have never paid one penny in bank charges and I don't intend to. I started with literally nothing and have never gone overdrawn or used my overdraft (even though now I have a 25k UNSECURED one available!).
Don't forget, running your own business is the best game in the world so long as you are winning...
Another good way to avoid the dreaded non-payment scenario is to operate in an area where it is customary for the customer to pay up front.
I do kitchen revamps and the ocassional complete kitchen. I charge 45% when I start work on the customer's stuff, 45% when it is finished but BEFORE it is installed, and the final 10% when it's in and they are happy. I could do it 50 50 and not have the concern over the final 10, but I like to give myself a little incentive.
Larger kitchen firms ask for the whole amount upfront, so I've never had a customer complain about my terms.
Incidentally, if you are looking for a business opportunity, and you have some moderate DIY skills and ideally a source of inexpensive local advertising, then email me, I have a possibility that might suit
I do kitchen revamps and the ocassional complete kitchen. I charge 45% when I start work on the customer's stuff, 45% when it is finished but BEFORE it is installed, and the final 10% when it's in and they are happy. I could do it 50 50 and not have the concern over the final 10, but I like to give myself a little incentive.
Larger kitchen firms ask for the whole amount upfront, so I've never had a customer complain about my terms.
Incidentally, if you are looking for a business opportunity, and you have some moderate DIY skills and ideally a source of inexpensive local advertising, then email me, I have a possibility that might suit
Most days its worth it. Some days you despair.
The day the big cheque comes in is a wonderful moment.
We've had only one bad debt in our ten year history. It was for a huge amount. If it hadn't happened at the same point that our firm was at its very most successful and was making a MINT of money (lovely days - I'll have them back one day, oh yes) we'd have been scuppered.
Since then we have avoided Government work like the plague and I advise you to do the same.
The day the big cheque comes in is a wonderful moment.
We've had only one bad debt in our ten year history. It was for a huge amount. If it hadn't happened at the same point that our firm was at its very most successful and was making a MINT of money (lovely days - I'll have them back one day, oh yes) we'd have been scuppered.
Since then we have avoided Government work like the plague and I advise you to do the same.
I agree with the above. Working for yourself has the illusion of being 'king of the hill' whereas in reality you're actually 'bottom of the pile'. This is most frustrating when you want a pay cheque but the VAT man gets his first.
Also, be careful about the credit thing. I have a specialist product that I only accept full payment up front for. This has always worked well but a new customer has negotiated a deal of deposit up front and balance on delivery.
Whole job is worth 4k profit but as the company has so far taken three weeks to get the deposit cheque in the post, I have realised that getting the balance on delivery will be near on impossible so on monday I will tell them we will not proceed with the order.
Also, be careful about the credit thing. I have a specialist product that I only accept full payment up front for. This has always worked well but a new customer has negotiated a deal of deposit up front and balance on delivery.
Whole job is worth 4k profit but as the company has so far taken three weeks to get the deposit cheque in the post, I have realised that getting the balance on delivery will be near on impossible so on monday I will tell them we will not proceed with the order.
I've had my own business for a little while now. It's coming on nicely, doing it in my spare time. Who knows if it'll bring in a sizeable salary and i'll do it full time?
The setup costs are minimal, about £120 gets all the legalities set up with an accountant (less hassle) and obviously the personal business start up costs.
In the work i'm in (link in profile), if a client doesn't pay i can cut him/her off until they do pay.
Got a few clients on here already too!
The setup costs are minimal, about £120 gets all the legalities set up with an accountant (less hassle) and obviously the personal business start up costs.
In the work i'm in (link in profile), if a client doesn't pay i can cut him/her off until they do pay.
Got a few clients on here already too!
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