Employed v Own Business

[Herr Tubthumper]

I'm a freelancer, slightly different to what you're suggesting, but I run my own affairs and much prefer it for a number of reasons.

 

[Herr Tubthumper]

If you go VAT Rated split off your VAT money to a separate account when a payment comes in - its not yours and the VAT man plays rough.

...

....and check out the 'flat rate scheme'. This earns me a few extra quid each year.

 

[Mr Burns]

I'm "Employed" but I own the business! Best advice you can get is go Limited, and get a new VAT number.

THe obvious advice is, if you are thinking of buying a company, can you not just set up your own one and start from stratch. I did, and never looked back. Went from earning less than 20k in a job I hated, working with people I hated, and now earn pushing on 6 figure sums a year working with someone I love (me)

 

[Stumpy Tim]

You haven't chosen the best time ever to do this have you?

Actually, a recession is the best time to start a business... best time to get your branding, marketing etc sorted is when you're not going to win great business anyway. So when the rise starts again you're ready.

I've just started a new business and I'm really excited by it

 

[Herr Tubthumper]

In my opinion this is the single most important bit of advice in this thread (so far). Never be tempted to spend this money, I would guess that more businesses get in trouble this way than any other.

It always used to be that the revenue guy was a bit more flexible than the VAT guy. They're the same outfit now, so bank the money and pay it on time.

Agree. I had a VAT inspection a few years back. A guy turned up at 9am and trawled my books for the best part of the day. He discovered a couple of minor inconsistencies but he was sooooo thorough and detailed. My accounts are pretty simple as well as I use the flat rate scheme.

But, he noticed some Albion stuff in my office we spoke about the Albion for 30 mins over tea....I like to think this helped me.

 

[Silkster365]

Thank you everyone, some really good advice and stories there. What with Christmas being upon us I am waiting until the new year now before looking into it any further but I appreciate all your advice. I'll be sure to let you know what I decide to do!

 

[Tom Hark Preston Park]

Ive been employed in a pretty safe office job now for 12 years, worked my way up etc. but becoming disillusioned with working for other people.

Ive been considering buying an existing business for a while, though havent seen one I like the look of yet.

I'd say if you aren't rock-solid in your vision of what you want to do when your working for yourself then stick where you are until you are sure of what it is you want. Knowing what you DON'T want isn't really a good enough reason to make the change IMHO. A lot of people blow their redundancy money, lottery wins, football/showbiz earnings etc. on buying into businesses they are unsuited for, then they wonder why it goes tits up. Good luck anyways.

 

[BRIGHT ON Q]

I am a self employed carpenter,worked for someone for 18 years then went it alone 2 years ago.Longer hours,dont really like the paperwork side of it but i am lucky as my mrs helps,but i would NEVER go back to working for someone else.

 

[NMH]

To be self-employed running your own business, you have to make sure it is profitable enough to be worthwhile. You exchange the comparative boredom and some sort of security of knowing what to expect every day, to the insecurity but excitement and rewards of doing your own thing.
Don't throw good money after bad. Don't put every penny into something if it's risky (and most things have an element of risk). Keep all your records, receipts, and journals - and file up-to-date at the end of each day, or as often as possible.

Many businesses fail.

Put every effort into preparation and the first period of your business, you mustn't rest on laurels thinking it will come good eventually without the optimum effort in starting out.

Even if you are an immediate success, don't blow your initial 'winnings'. Invest either back into the business, or in something that won't 'disappear' the money.

Always place the business in a 'good place' in your mind. It should not be the only thing in your life, holding all your faith and hopes - you might have to shrug it off and cut your losses. Even with debt up to your eyeballs, life goes on and you can fight another day.... with that experience under your belt.

Not least - enjoy the ride, whatever it's like and however bumpy it might be.