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My Week – Seeking Inner Peace

15th Jan 2016
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Please allow me a psychiatrist’s couch session today folks.

There comes a time in every business owner’s life where he questions whether he should pack it all in. I so feel like it. Employment sounds appealing. A regular salary, annual leave and sick leave. What can be better? Playing with someone’s else money. In comparison to running a small business, employment is stress-free.

If there was the worst time an employee can leave an accountancy practice, it is just before January. This is the worst January I have had since I went on my own.

The practice has expanded. I was reliant on my employee being here. It is trying to do it all, that got to me. TBH not doing anything well.

I now understand some of the posts raised on Any Answers about quitting. I really do.

It is the lack of control that causes so much stress. The stress itself causes you to lose control.

I looked at the salary levels being offered by accountancy practices. They have increased. The economy has improved.

I am torn. On the one hand, it is getting increasingly competitive and on the other pay levels have gone up. How does one manage this?

Experience has proved my support and training enables my employees to command higher salaries elsewhere, at levels, I simply cannot manage. I think London is a different ball game in terms of salaries and costs. Yet there are not the significant differences in fees one can command.

Is it best to curb my ambitions and be a sole practitioner with subcontractors? Maybe that is an option worth seriously considering.

My hour is up! 

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Replies (12)

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By petersaxton
15th Jan 2016 19:48

Have you considered?

Have you considered doing the work yourself and getting paid for it. Only when you can't do any more should you consider taking on an employee or subcontractor. You seem to be wanting to run before you can walk.

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By ShirleyM
15th Jan 2016 20:30

Pack it in

After the idiots I (and my employee) have dealt with today, I can't wait to retire. I can see some sackings are due, but that's the beauty of having your own business. You don't have to put up with idiots.

I'm selling up, but I could never have returned to employment, and I doubt you would enjoy it FT. You are too controlling to ever be able to take orders. You would be utterly miserable, but at least you would be getting regular pay.

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By petersaxton
16th Jan 2016 00:11

Don't pack it in

Like me, Shirley and yourself are unemployable. Self employment is fantastic.

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By cheekychappy
17th Jan 2016 10:14

I think any practitioner that has been on their own a while would struggle with employment.

I don't think I could have anybody to report to again. It would drive me nuts.

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Replying to C_Bryan:
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By darrenwilliams
18th Jan 2016 11:40

January will pass

cheekychappy wrote:
I think any practitioner that has been on their own a while would struggle with employment. I don't think I could have anybody to report to again. It would drive me nuts.

 

I agree with that.

 

That said if I had my time again, I think I would have tried out industry (my heart and love used to be what I do, but the massive changes made by the government and the  forever changing now and the changes on the horizon, I think I would have tried industry first....)

 

I also think employees are a hassle I never wanted, so was always happy to do the work myself.

 

NB January will soon be gone.

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By ShirleyM
17th Jan 2016 10:31

One more comment

Experience has proved my support and training enables my employees to command higher salaries elsewhere, at levels, I simply cannot manage. I think London is a different ball game in terms of salaries and costs. Yet there are not the significant differences in fees one can command.

If you can't pay decent wages and have enough left over for your own needs, then your business isn't really working for you or your employees.

You need to review your whole business from the bottom up or be satisfied with low or no earnings. You shouldn't expect any employee to work for less than decent pay, just because you made the decision to have an unworkable business model.

If you won't do the work yourself, then you have to pay someone else to do it. If you won't pay decent wages then you won't get decent employees. Isn't this all plain old common sense? How many times have people commented that your expectation of having one employee do sufficient fee earning work to maintain two salaries and all the overheads is not an ideal business model.

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By MissAccounting
18th Jan 2016 08:52

Could you find a job that allowed you to sit around doing nothing all day?

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Replying to mbee1:
By ShirleyM
18th Jan 2016 10:29

It's easy, Miss A

MissAccounting wrote:
Could you find a job that allowed you to sit around doing nothing all day?

It's called delegating. FT has lots of experience in this field. FT just has to make sure the new job allows delegation, then he'll be able to take the pay, the sick pay, the holidays, and he's laughing all the way to the bank.

Good luck, FT. I hope you find what you are looking for.

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Replying to ARAFVH:
By petersaxton
18th Jan 2016 10:55

Paternity leave

ShirleyM wrote:

MissAccounting wrote:
Could you find a job that allowed you to sit around doing nothing all day?

It's called delegating. FT has lots of experience in this field. FT just has to make sure the new job allows delegation, then he'll be able to take the pay, the sick pay, the holidays, and he's laughing all the way to the bank.

Good luck, FT. I hope you find what you are looking for.

What about paternity pay?

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By cheekychappy
18th Jan 2016 12:49

I get the impression that First Tab’s ideal job would involve female subordinates, but not female managers.

He would need flexi-time, lots of holiday entitlement, and tasks that would be picked up by someone else as he dicked about with other unimportant work.

Given that an employer like this would prove difficult to find, on his own he shall remain.

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By Tosie
19th Jan 2016 14:34

January idiots

Since the dawn of self assessment we have all experienced Januarys when the most sought  post on Accountingweb is Opportunities .

I find myself unable to concentrate and get on with the job, checking and checking but we get through and February dawns bright and clear and on we go.

Good luck firsttab only 12 days to go and what is not done then ijust too bad..Not the end of the world.

 

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Glenn Martin
By Glenn Martin
20th Jan 2016 11:47

When will enough be enough.

Firsttab I often wonder what you see as the optimum size for your practice s you only focus on growth. Are you trying to grow to a 100, 200,500 or 1,000 client practice or are you just intending to grow forever.

I am also in a growth phase, but find it very difficult managing chasing the new work and also servicing the work I already have. I am therefore longing for the day when I am at capacity at no longer have to chase work but simply service what I have. I can then reduce marketing to a level that maybe provides to refresh say 15% of GRF to replace leavers & retirements as opposed to signing up 30 or 40 clients per year as I have been. If I continue to grow organically beyond my capacity then I will look at maybe an AAT to assist in the day to day stuff.

Your marketing seems to work as from your posts you seem to get plenty of new clients, however you also seem to lose clients more often then other firms. I was once one told that a client on average will stay with you for 7 years, but you seem to have a higher burn rate than that, which I imagine is down to the fact that you work to sign up the job then pass them on to a junior to look after which would annoy a high volume of clients. Would you not therefore be better off reducing your growth plans and focus more on developing existing clients to get better fees from them, and building a practice on better foundations which will have longer term benefits. I would sooner have 70 clients I look after well and get say £100k GRF from as oppose to say 200 clients (sausage factory style) with high client turnover  than generate the same money.

 

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