What is most daunting?

Hi Steve,

Great question, and one which I think about every day!

I'm currently in an OK paid job. I get paid on the 15th of every month, and then by the time the next 15th comes round, it's normally always a struggle, especially in January after christmas!

I guess what worries me is when I officialy start, I'm going from earning x amount a month to not much at all! I've spoken to friends etc, and I am hoping to line myself up with some casual/cash in hand work to tie things over. I still have some debt which I need to clear. I thought that I should stay at work until it's clear, but in theory you could plan etc for days, months, years!

I've decided that I will take the plunge. I'm lucky that i dont have a mortgage etc, and hopefully my business will make me some money to clear the debts!

I can understand why a lot of people don't start a business, but I'm 'really looking forward to it all! meeting new people, clients, being my own boss! I cant wait!

Go for it!

Hi the.difference! I am not by any means an accountant, so please take this with a pinch of salt. I don't think you will be making any more money by going freelance than being employed, if you intend to charge the same per hour, partly becuse you would still have to pay tax and fees and stuff yourself (see no accountancy skills there...) But also because you would miss out on sick pay, pension and what ever else your current package is.
However - I really DO NOT understand why you shouldn't charge more as freelance than you do as an employee. Make sure you get enough to cover your entire package, and also you should be able to ask for a premium for the fact that they don't have to pay you at all when they don't use your services, or for when you are off sick. If you have people asking you to come and work for them already, then you are obviously good, and you really must ask for more cash for the added convenience you offer them.
The huge benefit to you however by going freelance/consultant is that you will be able to free up time to work on your new startup. Which is a good thing. If you don't charge more for your time as a consultant than you do now as an employee, you might however find that you work just as much as before to over the bills, and that the business start up time vanishes all the same. This is something that has certainly happened to me, and my business is SO SLOW compared to what it could have been. Not saying it won't bounce back, because it will, but I am probably a good year or so behind where I could have been, just from working too much on other things.
Anna

The whole money side is, for me, a difficult area. Although you clearly have to charge a higher hourly rate than when you were employed full time, it is not easy to feel comfortable doing so. In fact asking for money/preparing invoices can be very difficult if you've been very used to sitting on the other side saying "how much!" when people tell you contractor and outsourcing rates.

The thing to keep in mind is that you have to cover the fact that, even flat out you won't be working in a chargeable form the same number of hours you were full time (there's all the paperwork, etc. to do). You also have to cover your overheads (insurance, travel, accountants, corporation tax if you are Ltd., etc.). Its also wprth remembering that the customer doesn't have to employ you with all the associated overheads that entails.

Of course this is all from a service based viewpoint and not a product based one where things must get far more complicated with cost of materials, how many you can make, how many you can sell, other supply to point of sale costs, and all sorts of things I've not even thought of (not having read the book!).

I probably ought to actually buy the book and have a read, but I still can't my head around the value when I'm somewhere between 1 and 3 years down the road (depending on your view point), all be it from a running start that has left my feet a slightly dangerous distance behind my head trying to catch up, or at least ensure I don't fall flat on my face!!

...pending...

you know when im thinking about having my own business it gives me so much excitement but im a mother of three children and a full pledge mom my husband is an artist and a freelence production designer , he is earning just right for the whole month budget but it didn't scares me to be an entreprenuer. i wanted to be productive while im home taking care of my kids and in small ways maybe i could help a little on our financial needs and i wanted it start it on a right way so i won't make mistakes again for i wanted a long term business.

While i have resigned already - this was a big step for me. I gave three months notice even though i didn't have too so that i could get used to the idea. I loved my job and miss the people but one day on the spur of the moment i thought - i've always wanted this - and if i don't do it i will be one of those people who always talks about it and never does it and i couldn't live with that. it wasn't a desicion in the end it was just the only choice i had.

The difficulty is that my mood swings wildly from thinking of the excitment of being at the begining of the course i have planned for my whole life to thinking what the hell have i done, i don't know what i'm doing.

and what i have learned is that if i grab the fear and say yes this is fearful but that makes the difference between doing what you've always wanted to do and not doing it. Some days it works better than others!

Dear reader,
The most daunting thing I feel, is sales. My comments last week have changed drastically this week. Having often been told I could sell sand to the Arabs. I have quickly become aware of the fact, that they have loads of it, and, have no need to buy anymore. As a Graphic Designer, my past interaction with clients was always at a stage when the sale of service had been made. Now, having to sell, the service to feed the design there is a whole new area opening up and it is daunting. Daunting, but not off putting, so it is full steam ahead to fill up that funnel.

I have to agree with you strongly there. That thought did actually come into mind as i thought about my future. I thought those whom I actually admire the most and respect the most and look forward to seeing at work will certainly not be there forever. Anything can happen and I have to be able to look out for myself, make my dreams come true rather than waiting until they all move on to other things. Just thought I'd let you know that I do really agree with you... Best wishes in all your ventures