Hi,
I've recently qualified (ACCA) and am currently in the process of completing my Practising Certificate Training Record (PCTR), with the long-term goal of setting up my own practice, although I need to have 2 years post-qualification experience in order to be able to do this. My question is about getting started.
I currently work for a Top-20 firm but obviously will struggle to just quit my job and then go full-time into setting up a new practice, as obviously like anyone, I have bills to pay etc. One alternative, would be to try and build up a small amount of work gradually on the side whilst I'm working full-time, and then when I have a decent amount of income coming in, to then 'go for it' and quit the full-time job to focus full-time on running my practice.
I'm worried this may be in breach of contract though, has anyone else who has set up their own practice faced similar issues, or have they gone from full-time work to nothing to begin with?
I wouldn't be looking to poach clients (well certainly not initially, leave it 12/18 months) but I realise it may be difficult, as I'll need to advertise and set up a website to help build the business up initially. I do work around 30 minutes away from where I live, so perhaps if I targeted small, local businesses initially, I'd be OK.
What do you think? Any advice/constructive criticism even, would be appreciated. Cheers.
Replies (7)
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If you would be in breach of contract with your present employer
maybe you could change employment sometime in the future and get part time employment.
You may not earn anywhere near as much but it should keep you afloat while you increase your client base.
Be careful what you're offering
What work would you be looking to take on?
Make sure you are aware of the restrictions imposed by the ACCA
If you go it alone part time you also need to consider insurance, software, ML regs, etc
Good luck
Practising certificate
But to get a practising certificate and be able to offer these services you need 2 years post qual experience, which I don't think you currently have
I would get this first, get some cash behind you, and then look at getting a part time job whilst getting your own business up and running
PC not needed for book-keeping, mgmt accs, VAT and payroll
PC is only needed for year end accounts and tax returns. Avoid that work at the start and you can get going now without your PC, building up evening and weekend work alongside your job. It may not be what you want to long term, but it'll pay the bills when you give up your job whilst you're building up your proper practice work.
I set up a part time practice without my employer knowing - company in wife's name, second mobile phone, anonymous website - may not be exactly complying with the legals, but sometimes you have it to do.
As for breach of your employment contract, the risk is that they find out and sack you before you're ready to fly solo. Not much else they can do really. If you're careful, don't let your work suffer, and don't stray onto their patch, they'll probably never know. Your bigger risk is taking some of their clients when you leave - they can (and often do) take action against you, claiming damages for their losses if it's specified in your contract that you can't poach clients within x months/years of leaving.
In my case, I'd been doing work on the side for about a year, building it up nicely, and my employer only got wind of it when I applied for a part time teaching job at our local college - my aim was a bit of part time evening work to subsidise my new practice when I gave up my job. I was open at the college interview with my plans, and unfortunately, unknown to me, the senior parter was a governor at the college, hence he challenged me and that triggered him paying me off as voluntary redundancy (a few grand payoff was an added bonus! and better than the nothing I'd have got if I'd left - not having to work my notice period was even better!) as he was a coward and didn't want to go down the disciplinary route!
Of course, if different circumstances, if he'd got wind of my on the side work a few months earlier and if he'd more confidence in disciplinary, he could have got rid of me a lot sooner at a time when I wouldn't have been ready. That's what I mean about it being the risk of losing your job before you're ready - do all you can to avoid that, and you'll probably be fine!
Of course, you have another risk that you need them to sign off your experience record for your PC, so if you fall out with them, you'll struggle to get your PC and may have to take another job to get it signed off.
Hi
I set up a practice on the side to build up my fees before leaving my practice.
It's difficult to know if you would be in breach of contract as my contracts tended to be different. One said I couldn't nick clients if I left the firm or staff etc and if yours is only this then I can't see how you would be in breach of contract. Another said I couldn't do accounts for any potential client of the firm (i.e. every business) and so I guess working on the side constituted a breach of contract.
Realistically, if you put it in your wife's name and shut up about it (don't trust anyone) then I can't see how you would get caught. You could tick along nicely and then be ready for the off in 20115 as planned. The risk is you do get caught and then the boss kicks you into touch and you would never get your PC (who is going to help you start up as a competitor?)
You would have a problem in getting new clients to come to you when you can't answer the phone in the day or answer emails. My clients mainly came from friends or referrals but getting some business to understand this from day one is tough. I think I managed about £5k of fees and then this quickly multiplied when I left my firm.
I gave up my ACCA qualification eventually and quite happily work as a non member in my own firm. I'm sure most of my clients wouldn't know what ACCA actually meant anyway and some would probably think it is a betting accumulator.
If you wish to pursue the PC then you may just be better picking up local work and not advertising too greatly as it wouldn't be worth the risk.