Tuesday, 9 September 2008

So, hi I guess.

As anyone reading this will quickly realise, I'm new to this. And when I say 'this' I'm not just talking about blogging.

Three months ago I decided to start my own business. Since then I've discovered a whole new set of challenges, emotions, talents and, quite frankly, personal failings I had no idea existed. I'm just hoping the old adage of whatever doesn't kill you makes you stronger proves true.

A particular biggie on the 'new emotion' front has been Frustration, one big source of which has been that I can't tell many people about my entrepreneurial ambitions. It wouldn't sit well with my current employer and would probably mean the end of my job.

My solution is to start a blog. I'm hoping it will give me the opportunity to share some of my start-up angst in anonymous, secret squirrel style.

Of course, I'm rapidly discovering that starting a blog brings a whole new set of paranoid angsts. What if no one reads it? What if people do read it but think I'm boring? How would I feel knowing there are hundreds of strangers out there, all across the world, who all read my blog and judge me 'boring'!?

Right now - hopefully not for too much longer - I work in advertising, so I’ve been institutionally conditioned to fear ‘boring’; it’s social leprosy.

As a child I didn't keep a diary. Whenever I looked over what I'd penned the day before I was shocked by just how mundane and insignificant the entry was. I blushed with the tediousness of my own pre-adolescent pretentiousness. And there's still a big chunk of my psyche that's screaming at me as a type; 'what the hell are you doing! They'll laugh I tell you, laugh!'

Still, the first thing I learnt when looking to start my own business is that you just have to get over any worries you have about people laughing at you. Because they will - your parents, your friends, potential suppliers. Even your cat will occasionally throw you a little narrow-eyed curl of the lip.

In fact, laughter has been one the best reactions I've had so far. The worst, and most common, is the 'well it's sweet that you still have dreams' smile that people give you when they don't want to crush your idea but are obviously thinking that throwing in a £50k a year job to focus on a hobby is just a little bit naive.

So that's what this blog is going to be about - the reality of taking that naive, slightly demented step into the unknown world of starting my own business. I'm not quite sure how it'll turn out (the blog rather than the business, though it's true for both), but it's likely to be a collection of the emotional and the practical. The why as well as the how. I'm as likely to cover the intricacies of tax codes for sole traders as what it's like to wake up at 4am in a cold sweat wondering if everyone you know thinks you're a looser.

Let me know if there's anything I should include. Like I said, I'm new to this, so all advice is welcome! Here goes...

2 comments:

MC said...

Hi,

Just read your blog and as somone who started and runs their own IT Services business for the last 10 years here's my observations
( Please note that these may come with a Government health / wealth warning).

I assume that you have not yet setup your business.

1) Looks like the UK is going into recession - will the market you service still be there in 6 /12 /18 months time
2) How big is your market - Is it growing / shrinking year on year
3) How many competitors are you up against
4) What differenciates you from your competition
5) In my business contacts make contracts which makes cashflow - does this apply to yours
6) How much savings have you got?
Can you afford to have say 3 or 6 months with no income coming in?
7) What does your husband / wife / partner think about this?
8) Can you / they in 7) cope with stress ie no income and disappointment ie constantly missing out on a contracts you bid on
9) Make sure that ALL Business deals are in writing and that your contracts are tax compliant
10) Never assume check everything out - expect the worst on ocassions
11) Can you use a current client that you deal with as springboard to start your new business - be careful of promoting yourself to your old employers clients when you are still an employee
12) Get client references
13) If you feel that you are been messed around by a client then you probably are ie lots of promises of contracts but nothing turns up
14) Are you prepared to travel ie leave the UK on Monday and return on Friday if required by overseas clients
15) What is your current total pay package. Take this an divide it by 260 days to get your all in daily rate. Then do the same calculation and divide by 200 days to get your new business daily rate.
Why 60 days difference - no paid holidays, no sick pay (believe me you don't get sick running your own business), public holidays and some down time between contracts.
Are you happy with this? Can you live on this?

I'm sure there is a ton more but that's all I've got time for now.

New business newbie said...

Hi Maurice. Useful checklist. Always nice to know I'm not alone in the world of starting new businessdom.