Taking the plunge

Taking the plunge

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I'm 30. I have been building up a private client base (by word of mouth, not actively) for the last 10 years with the intention of going solo when I'd saved enough money to support my first year on my own.  I have worked in practice over the last 12 years and in an employed PAYE and very well paid consultancy role for the last 12 months. I have won a few new private clients in the last 6 months and have been increasingly busy working most evenings and weekends on my private work to the point where it is becoming too stressful as I am being spread thinly. I had decided to leave my role this Summer and set up on my own....that was until I had my annual review recently which went much better than I had expected, no pay rise but excellent feedback and an opportunity to be sponsored for CTA exams and to develop an income stream within the business, from which there would be a 'clear' route to partnership (as clear there ever can be I guess!). This has thrown me a bit and now I am in the indecisive position of whether to jack it in anyway and go it alone or somehow dispense of my private client base and put everything into making my employed role a success (this would be a shame as it has taken so long to get to where it is!).  Neither is a bad choice/option really but I have to make up my mind and choose just one as my time is totally consumed by having both hats on constantly.  Any advice, ideas and general independent thoughts or inspiration would be appreciated. Perhaps some of you have been in a similar situation before?  What did you do? Any regrets?  I should probably add that I've always wanted to have my own practice eventually (or at least be my own boss) mainly to have flexible hours and to do things 'my own way'. However, right now due to the stress of doing both jobs I have lost passion for both - any inspiration please?!!  Cheers.

Replies (7)

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By petersaxton
26th Jun 2013 21:12

My view

I think you should go it alone.

It wouldn't be fair on your employer to use their sponsorship and then go it alone and it would be difficult, if not impossible, for you to do your employment duties, duties to your own clients and studying. It would be a shame to lose your own clients. If you resigned and didn't have a lot of work to do because you were still slowly building your client base then you will find your studies easier.

If you have your own practice you will be having the life you want and you will be earning whatever you deserve, no more and no less. As an employee you are always dependent on external factors. I think you will be a success but it's wont come overnight but I'm sure you know that.

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By blok
27th Jun 2013 20:39

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Do both

Being the clients into the business and become a partner when you have done your cta.

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Man of Kent
By Kent accountant
27th Jun 2013 21:14

What do you really want?

Hi Nick

I’ve been in a similar position to you, twice in the last 18 months.

I started my own practice in June 2011 combining practice work with consultancy work which I had been doing for almost 2 years. Initially the consultancy work was the priority and the main source of income – I needed it to pay the bills.

As my practice client base increased I was able to start reducing the consultancy work to the point in November 2012 where I was able to stop it completely.

I actually stopped the consultancy too late, I had sufficient income from my accountancy clients but had got greedy and liked the consultancy income as well. The fall-out from this is that I worked too hard, my health suffered and I didn’t see as much of my family as I wanted to.

At two points during this period I had other work offers, one to become a partner/director in an accountancy practice where I had been doing subcontract work and one to become a full time consultant for one of the consultancy clients I had.

I ended up turning both of these down and its two of the best decisions I have made. Right now I work on my terms, today I stopped work at 4 to pick my eldest up from school, tomorrow – stop work at lunchtime to go to school sports day and then out to dinner with the family. The flipside is I’ll work in the evening to catch up, but its giving me time with my family at the right time.

So my opinion, decide what you really want to do – be a partner in a practice (this will take twice as long to happen as they say it will - if it ever does) or be your own boss, they’re very different. Once you’ve decided you need to implement that decision very soon as by the sounds of it you’re not enjoying things as they are.

If you decide to work for yourself then I would strongly recommend that rather than ditch the day job straight away that you give yourself  6-12 months and plan an exit strategy – save cash, increase clients, increase marketing etc. Then although you’ll be working extra hard for a period – it will be for a reason and a short term goal.

Good luck

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By User deleted
28th Jun 2013 08:10

Do your CTA

it will take you 12 months max if first time passes.  Then sit down with the partners, present them with your existing client base and say you want to discuss partnership options.

If nothing progresses at that point you know where you stand and then go it alone with your CTA qualification.

Other than being very busy and probably stressed for the next 12 months I do not see a down side.

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Glenn Martin
By Glenn Martin
28th Jun 2013 10:40

How Much Do you Trust these guys

I was In a similar position about 12 months ago. I was unhappy with current role with limited progression and long hours. I was offered a good position by a rival business and handed my notice in. My Boss panicked as he realised I had made him millions over the years and didn't want me working for a rival. He offered my shares in the company, pay review, better car, more support etc. I decided to stay, my boss welched on most of the things he had promised by which time the opportunity had gone so I quickly regretted my decision. I had always maintained a small practice of clients and started to push this to be become my main income. I handed my notice in at Xmas again my boss offered me all the riches to stay but I was not swayed this time and did it. So far things have gone well and maybe wish I had taken the plunge a few years earlier. If you want the partnership you could roll your own clients into as said above  and develop a good business, but get some contracts in place with timescales nailed down. I have worked with many entrepreneur style people who offer a lot when they have little, yet don't like giving it away once they have it. Since leaving I have had 2 very good offers of employment in the sector I used to work in, 12 months ago I probably would have taken both of them. However at the minute I am enjoying my freedom and loving not having to answer to anyone else. I think will be at my employed earnings levels with about 18 months, working maybe half the hours. After that who knows, but whatever decision I make it will mine alone. 

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By Nick_83
28th Jun 2013 18:08

Thanks
Cheers for taking the time to comment everyone - much appreciated!

Ultimately I want to be able to dictate my hours (to an extent) and not feel obliged to have to go out after work with clients/banks/lawyers to keep up appearances if I don't feel like it.

I am however slightly reluctant to give up the comfy monthly pay cheque and fear the worst if things don't work out on my own....!

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By petersaxton
28th Jun 2013 18:37

Don't worry

It's many years since I've had a comfy monthly pay cheque.

Some times I get things wrong and do a lot of work without completing much for clients and get very little money coming in for a couple of months but then I complete a lot of work at once and nearly get drowned in money!

From what you have said I think you'd be fine setting up on your own.

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